The India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade convened in Kathmandu from January 10-11, 2025. During the meeting, India agreed to Nepal’s request for the supply of 2,00,000 MT wheat, reinforcing its commitment to ensuring the steady supply of essential commodities to its neighbor.
Nepal expressed appreciation for India’s ongoing support in facilitating essential supplies and fostering economic ties.
Comprehensive Review of Trade Relations
The meeting served as a platform to review bilateral trade and economic relations comprehensively. Discussions covered mutual market access, intellectual property rights (IPR), and duty-related issues. Key topics included the review of the Treaty of Transit and the Treaty of Trade, proposed amendments to existing agreements, and harmonizing standards.
Both sides agreed to synchronize the development of trade infrastructure, including the electrification of the Raxaul-Birgunj rail line, to enhance cross-border trade efficiency.
Addressing Specific Requests
India agreed to apply a maximum axle weight of 18.5 tonnes for two-axle vehicles and 28 tonnes for three-axle vehicles for Nepali cargo-in-transit via the Kakarbhitta-Phulbari-Banglabandha route.
Additionally, India included Sal Seeds and Chayote in its Plant Quarantine Order and accepted Nepal’s request to add specific plant extracts to the list of processed items. Nepal showed openness to India’s request for reclassifying products like EPAQUE and POLYHIDE 28 in its technical systems.
Bilateral Initiatives for Connectivity
The meeting welcomed bilateral efforts to enhance cross-border connectivity, including constructing Integrated Check Posts and new railway links. A Joint Working Group was established to discuss accepting Online Certificates of Origin (CoO) with Nepal and the South Asian Free Trade Area (SAFTA).
Business Forum for Collaboration
On the sidelines, the 2nd edition of the Joint Business Forum (JBF) was organized by the Confederation of Indian Industries (CII) and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The forum, co-chaired by Shri N. Senthil Kumar of Indian Oil Corporation and Ms. Bhawani Rana of Nepal’s Investment Board, provided businesses with an opportunity to suggest improvements for ease of doing business.
Strengthened Partnership
“India continues to be Nepal’s largest trade and investment partner, significantly contributing to its imports and exports,” said the Indian Embassy in a statement. This meeting further cemented the countries’ economic and commercial linkages.
The Indian delegation was led by Sunil Barthwal, Commerce Secretary, Ministry of Commerce, while the Nepali team was headed by Gobinda Bahadur Karkee, Secretary, Ministry of Industry, Commerce, and Supplies.
Conclusion
The IGC meeting marks a milestone in strengthening India-Nepal relations, focusing on trade cooperation, seamless connectivity, and addressing mutual concerns for economic growth and stability.
