It has been six months since the Nathu La opened for border trade between India and China accompanied by an optimism that this would herald a new beginning in bilateral trade. Symbolically, Nathu La also displayed aplenty what has been absent in the bilateral relationship, namely trust. It was cited as a major confidence building measure. Six months later, the initial gung-ho over Nathu La has been replaced by realisation that merely opening the border post is not enough to boost trade.

First, is the problem of geographical conditions - the problem of accessibility. As the roads leading to Nathu La are in one of the more unstable parts of the Himalayas, they are simply inadequate to handle large cargo trucks. The traders from this area have been suggesting that the road to Nathu La at least be double-laned. This is necessary to achieve significant volume in trade. Weather-wise, the region becomes difficult to access in winter. Nathu La is 56 kilometres from Gangtok, capital of Sikkim. Gangtok itself is located in a hilly area. Hence, further hilly roads need to be traversed to reach the plains to the town of Siliguri linking it to the rest of India. Here too, they feel that significant infrastructure improvements need to be carried out. The strategic location of Siliguri in the Chicken's neck makes it a potential trade hub benefiting both North Bengal as well as the entire Northeast region. The woes of infrastructure for this region mean that even those businessmen, who were doing business in the 1950s when the pass was open, are not really keen to do so now, despite the huge potential offered by this trade post. Moreover, if India really wants to reap the benefits from this trade route, it is essential that the government address the problem of air connectivity. Bagdogra airport, for the city of Siliguri is primarily a military airport where there is no extensive air connectivity from major airlines, not even from the state-owned Indian (Airlines). The lack of attention from the Indian side becomes glaring when we see what the Chinese grand strategy for Nathu La is. The Chinese, after inaugurating the Qinghai-Tibet Railway line last year, have embarked on a major infrastructure improvement programme in this region. This, they hope will give them full access to the Indian subcontinent and an opportunity to flood markets (like the one in Siliguri) with Chinese goods. For India, it is simply impossible to match this Chinese strategy with the present infrastructure on this side of the border.

Second, complimenting this infrastructure reinforcement on the ground, what is also required is a change in the attitude of Indian policymakers. Given India's hesitance in clearly outlining its security and territorial concerns, it is not able to embrace fully the new economic opportunities emanating from China. Nathu La is a military area, not always accessible to the civilians. In these circumstances, it would be futile to expect anything substantial from opening this post, unless the China bogey logic is turned upside down - the only way to dispel the fear of China is to initiate deeper economic engagement with that country.

Third, modifying existing laws to accommodate the border trade at Nathu La is a necessity. Even though trade was resumed in July 2006, some of the traders complained that the Indian customs authorities refused them permission to conduct trade for lack of proper importer-exporter code number. Some press reports even suggest that some of the Chinese traders had to take their goods back with them as they did not figure in the import list prepared by the officials. Such cumbersome bureaucratic procedures and delays only hamper an effective utilisation of this route.

Fourth, Nathu La can be used for giving momentum to the process of regional integration. Given the location of Nathu La-Siliguri route in the vicinity of Bhutan and Nepal, efforts can be made to develop a sub-regional hub for international trade. The commodities that will be exchanged in this part will be no doubt local in nature, but the confidence and trust that will be created through this endeavour will go a long way in building bridges of cooperation.

Finally, Nathu La also has a tourism potential. According to the Nathu La Trade Report 2005, developing Nathu La's potential in line with its Buddhist heritage, along with the eco-tourism policy of Sikkim should be a priority.

The current cautious attitude notwithstanding, Nathu La remains a viable proposition for bilateral trade between India and China. A lot needs to be done, particularly by the Indian government to unlock the real value in this trade.