India-Nepal Trade Talks
The India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade convened in Kathmandu on January 10-11, 2025. This meeting aimed to enhance the economic relationship between the two neighboring countries. Led by Shri Sunil Barthwal, Secretary of the Department of Commerce from India, the Indian delegation included senior officials from various ministries and the Indian Embassy in Kathmandu. The Nepali delegation was headed by Mr. Gobinda Bahadur Karkee, Secretary of the Ministry of Industry, Commerce, and Supplies, along with representatives from different Nepali ministries.
This meeting served as a platform for both nations to review and discuss various aspects of their bilateral trade and economic ties. The discussions covered a wide range of topics, including market access, intellectual property rights (IPR), and duty-related issues. The IGC also focused on reviewing existing treaties and proposed amendments to enhance cooperation in trade and transit.
Comprehensive Review of Bilateral Trade
During the meeting, both sides conducted a thorough review of their bilateral trade relationship. They discussed mutual market access issues, which are crucial for ensuring fair trade practices. The Indian delegation acknowledged Nepal’s request for the supply of 200,000 metric tons of wheat, which was accepted. This gesture was appreciated by the Nepali side, highlighting India’s ongoing support in providing essential commodities.
Additionally, the IGC addressed the Treaty of Transit and the Treaty of Trade. Both countries explored proposed amendments to these agreements to better facilitate trade. The discussions also included harmonizing standards and developing trade infrastructure. A significant point of discussion was the electrification of the Raxaul-Birgunj rail line, which is expected to improve connectivity and trade efficiency between the two nations.
Enhancing Cross-Border Connectivity
The meeting emphasized the importance of enhancing cross-border connectivity between India and Nepal. Both sides expressed their commitment to constructing new Integrated Check Posts and improving railway links. These initiatives are designed to facilitate smoother trade and movement of goods across the border.
Moreover, the IGC agreed to form a Joint Working Group to discuss the acceptance of Online Certificates of Origin (CoO) with Nepal and the South Asian Free Trade Area (SAFTA). This initiative aims to streamline trade processes and reduce bureaucratic hurdles, making it easier for businesses to operate across borders.
The discussions also included the inclusion of specific products in India’s Plant Quarantine Order. The Indian side agreed to include Sal Seeds and Chayote, responding positively to Nepali requests. This move is expected to benefit both countries by expanding the range of products traded.
Joint Business Forum: A Platform for Collaboration
On January 11, 2025, the 2nd edition of the Joint Business Forum (JBF) was organized alongside the IGC meeting. Co-chaired by Shri N. Senthil Kumar from the Indian Oil Corporation and Ms. Bhawani Rana from the Investment Board of Nepal, the forum provided a valuable opportunity for businesses from both nations to voice their suggestions.
The JBF focused on improving the ease of doing business in the context of bilateral trade and investment. Participants discussed various challenges and opportunities, aiming to foster a more conducive environment for trade. This collaborative approach is essential for strengthening economic ties and enhancing mutual benefits.
India remains Nepal’s largest trade and investment partner, significantly influencing both imports and exports. The discussions held during the IGC are expected to further solidify these economic and commercial linkages, paving the way for a prosperous future for both nations.
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