Nepal-India IGC meeting makes overall review of bilateral trade, economic ties

KATHMANDU, JANUARY 13 : The Nepal-India Inter-Governmental Committee (IGC) recently convened in Kathmandu for two days to comprehensively review all facets of bilateral trade and economic relations. This bilateral mechanism serves as a platform to fortify trade and business ties between the two nations.

The agenda encompassed a thorough review of the transit treaty and trade treaty, including pivotal aspects such as the electrification of the Raxaul-Birgunj railway line. Proposed amendments to existing agreements were also discussed, along with the crucial coordination of norms and the gradual development of robust trade infrastructure. Both sides meticulously examined issues related to mutual market access, intellectual property rights, and taxation.

A significant development emerged during the meeting, with the Indian side confirming its approval of Nepal's request for the supply of 200,000 metric tonnes of wheat. The Nepali side expressed its sincere gratitude to India for its unwavering support in ensuring the uninterrupted supply of essential commodities to Nepal.

In response to a specific request from the Nepali side, the Indian side agreed to extend the maximum axle weight limits applicable to Indian vehicles on the Kakarbhitta-Banglabandh route to Nepali vehicles as well, provided they adhere to the prevailing regulations of the Ministry of Road Transport and Highways.

Furthermore, responding positively to Nepal's request, the Indian side included Sal (Shorea robusta) seeds and squash in its plant quarantine order. Additionally, India's requests for the inclusion of Jatamsi-root extract, Fragrant Kokila Berry extract, Fragrant Rhizome extract, and Timur Berry extract in the list of processed products were also favorably accepted.

In response to a request from the Indian side, Nepal expressed its willingness to review the documents related to the reclassification of products such as 'IPAQE 28' within its technical system.

The Indian side highlighted certain challenges encountered in the export of milk to Nepal. In response, the Nepali side agreed to favorably consider the Indian side's request for market access for milk products, including mohi (whey) and cheese, which are not currently produced in sufficient quantities within Nepal.

The meeting warmly welcomed the bilateral initiatives aimed at strengthening uninterrupted inter-country connectivity between India and Nepal. These initiatives encompass the construction of new integrated checkposts and railway links, among others.

Both sides reaffirmed their unwavering commitment to advancing bilateral connectivity, reflecting the shared vision of a prosperous and mutually beneficial trade relationship. A significant outcome of the meeting was the agreement to establish a joint working group to facilitate discussions on online approvals with Nepal and the South Asian Free Trade Area (SAFTA).

The Nepali delegation was led by Govinda Bahadur Karki, Secretary at the Ministry of Industry, Commerce, and Supplies. Similarly, the Indian delegation was headed by Sunil Barthwal, Commerce Secretary at the Ministry of Commerce of India. The meeting was also attended by senior officials from the Embassy of India in Kathmandu and various relevant ministries.

The meeting concluded with a positive outlook, emphasizing the shared commitment of both nations to strengthen trade ties and foster economic growth.