India-Nepal IGC meeting on Trade, Transit, and Cooperation to combat unauthorised trade

Kathmandu: The India-Nepal Inter-Governmental Committee (IGC) meeting on Trade, Transit, and Cooperation to Combat Unauthorised Trade has been concluded.

The meeting was held in Kathmandu from January 10-11, 2025. Sunil Barthwal, Commerce Secretary, Ministry of Commerce, Government of India, led the Indian delegation, which included senior officials from various Ministries and the Embassy of India in Kathmandu.

The Nepali side was headed by Gobinda Bahadur Karkee, Secretary, Ministry of Industry, Commerce and Supplies, Government of Nepal, accompanied by representatives from different Nepali Ministries and Departments.

This meeting of the IGC, a bilateral mechanism aimed at strengthening trade and investment ties, carried out a comprehensive review of the whole gamut of bilateral trade and economic relationships.

Both sides reviewed mutual market access issues, IPR, and duty-related issues. The agenda also included discussions on the review of the Treaty of Transit and the Treaty of Trade, proposed amendments to existing agreements, the harmonization of standards, and the synchronized development of trade infrastructure including the electrification of the Raxaul-Birgunj rail line.

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

At the Nepali side’s request, the Indian side agreed that as per prevailing regulations of the Ministry of Road Transport and Highways, a maximum axle weight of 18.5 tonnes for two-axle vehicles and 28 tonnes for three-axle vehicles may also apply to Nepali vehicles concerning the cargo-in-transit on Kakarbhitta (Nepal)-Banglabandha (Bangladesh) via Phulbari (India) route.

In response to the Nepali side’s requests, 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; Sugandhkokila berry extracts; Sugandhwal Rhizome extract and Timur berry extracts into the list of Processed Items (Plant Products) has also been accepted.

At the Indian side’s request, the 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 the 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 and Nepal including through the construction of new Integrated Check Posts and railway links.

Both sides expressed a commitment to taking forward 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 with Nepal and SAFTA.

A meeting of the Inter-Governmental Sub-Committee (IGSC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade at the level of Joint Secretary had earlier met from 12-13 January 2024 in Kathmandu.

The 2nd edition of the Joint Business Forum was organized on the sidelines of the meeting by the Confederation of Indian Industries (CII) and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on 11 January 2025. This was co-chaired by N. Senthil Kumar, Director (Pipelines, Planning & Business Development), Indian Oil Corporation, and  Bhawani Rana, Member, Investment Board of Nepal.

The JBF allowed businesses on both sides to highlight their suggestions to improve the ease of doing business in the context of bilateral trade and investment.

India continues to be the largest trade and investment partner for Nepal, significantly contributing to both Nepali imports and exports. The discussions in the IGC are expected to further fortify the economic and commercial linkages between the two countries.