India rejects Nepal’s objection to Lipulekh trade agreement with China, calls territorial claims ‘untenable’

NEW DELHI: The Ministry of External Affairs on Wednesday dismissed Nepal’s objection to the resumption of India’s border trade with China through Lipulekh pass, calling Kathmandu’s territorial claim over the trade route as “untenable” and not based on “historical facts and evidence.”

MEA spokesperson Randhir Jaiswal asserted that India has been trading with China through the Lipulekh pass since 1954 and said India remains open to “constructive interaction” with Nepal through dialogue and diplomacy to resolve the “boundary issues.”

“Our position in this regard (on Lipulekh Pass) 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”, Randhir Jaiswal said.

In response to media queries regarding comments made by Nepal on border issue, Official Spokesperson Shri Randhir Jaiswal says “We have noted the comments of Ministry of Foreign Affairs of Nepal related to resumption of border trade between India and China through the Lipulekh… pic.twitter.com/9UNQ6u2iWM

— ANI (@ANI) August 20, 2025

“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. India remains open to constructive interaction with Nepal on resolving agreed outstanding boundary issues through dialogue and diplomacy. “India remains open to constructive interaction with Nepal on resolving agreed outstanding boundary issues through dialogue and diplomacy,” the MEA spokesperson added.

This comes after Nepal objected to the agreement between India and China to open a trade route via Lipulekh, asserting its claim over the land. Responding to media queries, the Ministry of Foreign Affairs on Wednesday issued three points, asserting claims over the land and objecting to the unilateral move by China and India.

“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”, the first point of the press statement reads.

Nepal maintains that Lipulekh, including Kalapani and Limpiyadhura, belongs to Nepal according to the Sugauli Treaty of 1816. Furthermore, the Ministry reiterated previous diplomatic attempts and communications with both countries, asserting Lipulekh to be Nepali territory.

“It is also known that the Nepalese government has been urging the Indian government not to undertake any activities such as road construction/expansion, border trade in the area. It is also known that the friendly country, China, has been informed that the area is Nepali territory.”

India and China have agreed to reopen border trade through Lipulekh Pass, a point located 56 kilometres inside Nepal’s western frontier in Limpiyadhura. The agreement was made during Chinese Foreign Minister Wang Yi’s visit to India. Both countries agreed during a meeting between Indian External Affairs Minister S Jaishankar and Chinese Foreign Minister Wang Yi. Point nine of the joint communique mentions the resumption of border trade.

“Both sides agreed to the re-opening of border trade through the three designated trading points, namely Lipulekh Pass, Shipki La Pass and Nathu La Pass.” India’s position is that the Kalapani region, including Lipulekh and Limpiyadhura, is part of its territory. This claim is based on India’s interpretation of the Sugauli Treaty of 1816, which defined the border with Nepal based on the Kali River.

India maintains that the river originates at the Kalapani village, while Nepal argues it originates further north, at Limpiyadhura. This difference in interpretation leads to the disputed territory. In 2023, China released a new map showing Lipulekh, Kalapani, and Limpiyadhura as part of India. (ANI)