India-China trade through Lipulekh upsets Nepal: Why Delhi and Kathmandu remain at odds over this Himalayan Pass

“The Nepalese government is clear that the official map of Nepal has been included in the constitution of Nepal and that the map shows Limpiyadhura, Lipulekh and Kalapani east of the Mahakali River as integral parts of Nepal,” Nepal’s foreign ministry said on August 20.

“It is a well-known fact that the Nepal government has been requesting the government of India not to construct or expand roads and indulge in any kind of activity such as border trade in the territory,” ministry spokesperson Lok Bahadur Chhetri stated.

The ministry added that Nepal had already notified China that the disputed region lay within its borders. “It is also well known that the Nepal government has already informed the government of China that the area lies in Nepalese territory,” the statement read.

“The Nepal government is committed to resolving the border issue between the two countries through diplomatic channels on the basis of historical treaty - agreement, facts, map and other evidence complying with the spirit of cordial and friendly relations existing between Nepal and India,” it further said.

Nepal’s sharp reaction came just days after Indian Foreign Secretary Vikram Misri visited Kathmandu and invited Prime Minister KP Sharma Oli to New Delhi in September. On the very same day, India and Nepal jointly inaugurated two bridges built with Indian assistance in Koshi province.

India’s response

New Delhi has dismissed Nepal’s objections, calling them baseless.

“Our position in this regard has been consistent and clear. Border trade between India and China through Lipulekh Pass had commenced in 1954 and has been going on for decades. This trade had been disrupted in recent years due to COVID and other developments, and both sides have now agreed to resume it,” Ministry of External Affairs spokesperson Randhir Jaiswal said.

“As regards territorial claims, our position remains that such claims are neither justified nor based on historical facts and evidence. Any unilateral artificial enlargement of territorial claims is untenable,” Jaiswal added.

He also reiterated that India was open to talks with Nepal. “India remains open to constructive interaction with Nepal on resolving agreed outstanding boundary issues through dialogue and diplomacy,” he said.

The crux of the dispute

At the heart of the dispute lies the interpretation of the 1816 Treaty of Sugauli, signed between the British East India Company and Nepal. The treaty set the Kali River as the boundary between the two sides. But the disagreement stems from which tributary of the river marks the actual origin.

Kathmandu argues that the river originates in Limpiyadhura, which places Lipulekh and Kalapani on its side of the border. New Delhi, however, maintains that the boundary begins from Lipulekh itself.

“The disputed land lies between the two rivers,” Lok Raj Baral, a former Nepali diplomat, explained to Al Jazeera. “Nepal did not have the capacity to produce maps, so it depended on maps published by the British India. The first boundary claim by Nepal was made in 1962.”

This long-standing disagreement has repeatedly flared up in recent years. In 2019, India published a new map showing Kalapani within its borders, a move that angered Kathmandu. The following year, Nepal issued its own revised map, bringing Lipulekh, Kalapani and Limpiyadhura firmly within its claimed territory. India dismissed that step as “untenable”.

Nepal has also protested against India’s infrastructure projects in the region, including the 80-kilometre road inaugurated in 2020 that links Uttarakhand to the Lipulekh Pass, the shortest route for Indian pilgrims to Kailash Mansarovar in Tibet.

In 2023, Kathmandu went a step further by unveiling a new currency note featuring the disputed map. Again, India rejected the move, saying unilateral actions cannot alter the reality on the ground.

More than just a border issue

While India and Nepal share deep cultural, historical and economic ties, the Lipulekh dispute has become a recurring irritant in bilateral relations. For Nepal, the issue is tied to sovereignty and national pride. For India, it involves access to a strategic Himalayan pass critical for trade with China and for religious tourism to Kailash Mansarovar.

Every few years, the issue returns to the forefront, as it has now with the resumption of India-China trade through the route. Despite repeated clashes over maps, roads and trade routes, both countries have consistently stated that dialogue remains the way forward.

For now, Lipulekh continues to symbolise one of the most contentious points in the India–Nepal relationship, where history, geography and geopolitics collide.