NICCI welcomes Nepal-India IGC meeting outcome, urges for speedy implementation

Nepal-India Chamber of Commerce & Industry (NICCI) welcomed the outcome and urged for speedy implementation of the India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade that was held in Kathmandu on January 10-11.

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 held on January 12-13, 2024 in Kathmandu.

The Nepali delegation was led by Secretary Gobinda Bahadur Karkee, Ministry of Industry, Commerce and Supplies of Nepal and the Indian side by Commerce Secretary Sunil Barthwal, Ministry of Commerce, Government of India. Apart from secretaries senior officials from different Ministries and relevant departments of both the countries, including the Embassy of India in Kathmandu took part in meeting.

NICCI welcomed the outcomes of the IGC, a bilateral mechanism aimed at strengthening trade and investment ties, that did a comprehensive review of the whole gamut of bilateral trade and economic relationship, including mutual market access issues, IPR and duty related issues, reads a statement issued by NICCI.

NICCI is hopeful of renewed enthusiasm in trade and transit as the IGC also discussed on 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.

NICCI also welcomed Indian decision to supply 200,000 MT wheat that was requested by Nepal. 

In the meeting, the Indian side agreed that as per prevailing regulations of Ministry of Road Transport and Highways, maximum axle weight of 18.5 tonnes for two axle vehicles and 28 tonnes for three axle vehicles may also be applicable to Nepali vehicles with respect to the cargo-in-transit on Kakarbhitta (Nepal)-Banglabandha (Bangladesh) via Phulbari (India) route, which is a welcome step, according to NICCI. 

Likewise, in response to 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, which is also welcome move by the India.

During meeting, at the Indian side’s request, 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 Indian side positively for milk products not adequately produced in Nepal such as whey and cheese.

NICCI finds it positive that the meeting welcomed bilateral initiatives aimed at reinforcing the seamless cross-border connectivity between India and Nepal including through 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.

NICCI is of the view that India as the largest trade and investment partner for Nepal, its contribution to Nepal will further fortify the economic and commercial linkages between the two countries.