February 10, 2025, Monday
Nepal 1:37:26 pm

Nepal – India ICG meeting reviews whole gamut of bilateral trade and economic relations

The Nepal Weekly
January 14, 2025

The Nepal – India Inter-Governmental Committee (ICG) meeting that concluded in Kathmandu on Saturday carried out a comprehensive review of the whole gamut of bilateral trade and economic relationship. The Intergovernmental Committee on Trade, Transit and Cooperation to combat unauthorized trade also held “discussion on review of the Treaty of Transit and the Treaty of Trade proposed amendments to existing agreements the hramonization of standards and the synchronized development of trade infrastructure including the electrification of Raxaul – Birgunj railway line,” according to a press release issued by Indian Embassy, Kathmandu.

Sunil Barthwal, Commerce Secretary, India led the Indian delegation while the Nepali side was led by Gobinda Bahadur Karki, secretary, Ministry of Commerce, Industry and Supplies.

During the meeting the Indian side informed that the request made by Nepal to supply 200,000 MT wheat had been accepted. “The Nepal side expressed its appreciation to the Indian side for its continued support in ensuring the supply of essential commodities to Nepal.”

At the request of Nepal the Indian side agreed that as per prevailing regulations of Ministry of Road Transport and Highways, maximum axle weight of 18.5 tonnes for two axle vehicles and 28 tonnes for three axle vehicles may also be applicable to Nepali vehicles with respect to the cargo – in transit on Kakarbhitta (Nepal) – Banglabandha (Bangladesh) via Phulbari (India) route, states the press release issued on Sunday. In response to the Nepali side’s request the Indian side informed that Sal seeds and Chayote have been included in the Plant Quarantine Order of India. The request for Jatamasi – Root extract, “Sugandhakokila berry extracts and Timur berry extracts into the list of Processed Items (Plant Products) has also been accepted,” reads the press release.

At the Indian side’s request Nepali side expressed openness to reviewing the documentation regarding the reclassification of products like EPAQUE and POLYHIDE 28 in their technical systems. The Indian side highlighted the problems faced in milk exports to Nepal. The Nepali side agreed to consider the request of Indian side positively for milk products not adequately produced in Nepal such as whey and cheese.

“The meeting welcomed bilateral initiatives aimed at reinforcing the seamless cross-border connectivity between India ad Nepal including through construction of new Integrated Check Posts and railway links. Both the sides expressed a commitment to taking forwards bilateral connectivity, reflecting the shared vision of prosperous bilateral trade.”

Both sides agreed to form a Joint Working Group for discussion on the acceptance of Online CoO (Certificate of Origin) with Nepal and SAFTA.

A meeting of the Inter Governmental Sub-Committee (ISGC) on Trade, Transit, and Cooperation to coat unauthorized trade at the level of joint secretary was earlier held from January 12-13 in Kathmandu. The second edition of the Joint Business Forum was organized on the sideline of the meeting by Confederation of Indian Industries (CII) and Federation of Nepalese Chamber of Commerce and Industry (FNCCI) on January 11, 2025. The meeting was co-chaired by N. Senthil Kumar, Director (Pipelines, Planning and Business Development), Indian Oil and Ms. Bhawani Rana, member, Investment Board, Nepal. “The JBF gave an opportunity for businesses on both sides to highlight their suggestions to improve ease of doing business in the context of bilateral trade and investment.”