India-Nepal Inter-Governmental Committee Meeting Concludes in Kathmandu with Key Discussions on Trade, Transit, and Combatting Unauthorised Trade.
Kathmandu:
The India-Nepal Inter-Governmental Committee (IGC) meeting on Trade, Transit, and Cooperation to Combat Unauthorised Trade concluded in Kathmandu on January 11, 2025. The two-day meeting, held from January 10-11, aimed at strengthening the trade and investment relationship between the neighboring countries, saw significant discussions on various bilateral trade issues and infrastructural cooperation.
The Indian delegation was led by Sunil Barthwal, Secretary of the Department of Commerce, Government of India, and included senior officials from various Indian ministries and the Embassy of India in Kathmandu. The Nepali side was represented by Gobinda Bahadur Karkee, Secretary of the Ministry of Industry, Commerce, and Supplies, Government of Nepal, alongside other Nepali ministry representatives.
Key topics discussed included mutual market access, intellectual property rights (IPR), and duty-related issues. Both sides reviewed the Treaty of Transit and the Treaty of Trade, with proposed amendments to existing agreements and the harmonization of standards. A significant focus was placed on the synchronized development of trade infrastructure, including the electrification of the Raxaul-Birgunj rail line.
The Indian delegation confirmed the approval of Nepal’s request for the supply of 200,000 MT of wheat, a move appreciated by the Nepali side for ensuring the steady supply of essential commodities. Further, India agreed to extend the axle weight regulations for Nepali vehicles on the Kakarbhitta-Banglabandha-Bengal border route.
The Indian side also confirmed the inclusion of several Nepali agricultural products in the Plant Quarantine Order of India, including Sal Seeds, Chayote, and several herbal extracts. Additionally, discussions were held on improving the documentation for product reclassification in Nepal’s technical systems, including milk-related products such as whey and cheese.
Both sides welcomed new initiatives aimed at enhancing cross-border connectivity, including the construction of new Integrated Check Posts and new railway links, highlighting the shared vision for a prosperous bilateral trade future. A Joint Working Group will also be formed to discuss the acceptance of the Online Certificate of Origin (CoO) between Nepal and India under the South Asian Free Trade Area (SAFTA) framework.
The meeting was complemented by the 2nd Joint Business Forum (JBF), co-chaired by N. Senthil Kumar, Director (Pipelines, Planning & Business Development), Indian Oil Corporation, and Bhawani Rana, Member of Nepal’s Investment Board. This forum provided businesses from both countries the opportunity to discuss strategies for improving ease of doing business in the context of bilateral trade and investment.
India remains Nepal’s largest trade and investment partner, and the outcomes of this IGC meeting are expected to further strengthen their economic and commercial ties, enhancing the overall relationship between the two nations.
