Border trade between India and China has resumed with the opening of the historic Nathu La Pass after more than four decades.

The opening ceremony took place at the windswept border between India's Sikkim state and Tibet.

The Himalayan pass of Nathu La, 4,000m (14,000 feet) above sea level, was once part of the ancient Silk Road.

There is feverish construction activity on the Chinese side to finish work on the 14,000ft (4,300-metre) high pass to facilitate traffic.

But the road connecting the pass to the nearest Indian town, Gangtok, is in poor shape.

Studies suggest trade through the pass could reach $75m by 2010 and even double in the next 10 years.

A high-altitude bank automated teller machine is set to see better business with traders flocking to the border.

China has accepted the border state of Sikkim where Nathu La is located as a part of India.

The trade route is a sign of rapprochement between the two sides who fought a fierce border war here 40 years ago.