The India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade was held from January 10 to January 11, 2025 in Kathmandu, Nepal. This meeting is a bilateral mechanism which aims at bolstering trade and ties between both countries.
- Both countries carried out a comprehensive review of the whole scenario of bilateral trade and economic relationship.
- They also reviewed mutual market access issues, Intellectual Property Rights (IPR)and duty related issues.
Participants:
i.The Indian delegation was led by Sunil Barthwal, Secretary of Department of Commerce (DoC), Ministry of Commerce and Industry (MoC&I), which also includedsenior officials from various ministries and the Embassy of India in Nepal.
ii.Gobinda Bahadur Karkee, Secretary, Ministry of Industry, Commerce and Supplies, represented Nepal at the meeting. He was accompanied by representatives from various ministries and departments of the Government of Nepal.
Key Highlights of India-Nepal IGC:
i.The key issues which were discussed during the meeting: review of the Treaty of Transit and The Treaty of Trade, proposed amendments to existing agreements, synchronized development of trade infrastructure including, the electrification the Raxaul (Bihar, India)-Birgunj(Kathmandu, Nepal) rail line.
ii.India informed that the request of Nepal for supply of 2 lakh Metric Tonne (MT) Wheat had been accepted by the Government of India (GoI).
ii.Also, at the request of Nepal, India may apply the existing regulations of Ministry of Road Transport and Highways (MoRTH)Â which include maximum axle weight of 18.5 tonnes for two axle vehicles and 28 tonnes for three axle vehicles to Nepali vehicles with respect to the cargo-in-transit on Kakarbhitta (Nepal)-Banglabandha (Bangladesh) via Phulbari (India) route.
iii.India has informed that Sal seeds and Chayote have been included in the Plant Quarantine of India.
- It has further accepted the request to include Jatamansi-Root extract; Sugandhkokila berry extracts; Sungandhwal Rhizome extract and Timur berry extracts into the list of Processed Items (Plant Products).
iv.Nepal expressed willingness to review the documentation regarding the reclassification of products like: EPAQUE and POLYHIDE 28 in their technical systems.
v.They also agreed to form a Joint Working Group(JWG) for discussion on the acceptance of Online Certificate of Origin (CoO) with Nepal and South Asian Free Trade Area (SAFTA).
vi.During the meeting, India raised concerns about the problems faced in milk exports to Nepal. Nepal agreed to consider the request of India for milk products not adequately produced in Nepal like: whey and cheese.
2nd Joint Business Forum:
i.On the sidelines of India-Nepal IGC, the 2nd edition of Joint Business Forum (JBF) was held between India and Nepal on January 11, 2025 in Kathmandu, Nepal.
- The forum was co-chaired by N. Sethil Kumar, Director of Pipelines, Planning & Business Development, Indian Oil Corporation (IOC) and Bhawani Rana, Member of Investment Board of Nepal.
ii.It was organised by Confederation of Indian Industries (CII) and Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
iii.This forum provides a platform to both countries to explore business opportunities on both sides and highlight their suggestions to enhance ease of doing business in the context of bilateral trade and investment.
About Nepal:
Prime Minister (PM)-Â Khadga Prasad Sharma Oli
President – Ram Chandra Poudel
Capital- Kathmandu
Currency- Nepalese Rupee (NPR)
