NICCI calls for swift implementation of Nepal-India IGC meeting agreements

Kathmandu, Jan. 14

Nepal-India Chamber of Commerce and Industry (NICCI) has urged for speedy implementation the agreements made by 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 been held from 12-13 January 2024 in Kathmandu.

Nepali delegation was led by Commerce Secretary of Nepal Gobinda Bahadur Karkee while Indian team was led by Indian Commerce Secretary Sunil Barthwal.

The IGC is 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.

Welcoming the decision of the meeting, NICCI expressed hopes for renewed enthusiasm in trade and transit between the two countries. "As the IGC also discussed 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, it is likely to ease and facilitate the trade," read a statement issued by the NICCI.

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

"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," read the statement of 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; Sugandhakokila berry extracts; Sugandhawal Rhizome extract and Timur berry extracts into the list of Processed Items (Plant Products) has also been accepted, which is also welcomed by India.

During the meeting, the Indian side expressed its concerns about 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," read the statement. 

 Published in The Rising Nepal daily on 15 January 2025.