The India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade was held in Kathmandu from January 10-11, 2025.

Secretary, Department of Commerce, Government of India, Shri Sunil Barthwal led the Indian delegation which included senior officials from various Ministries and the Embassy of India in Kathmandu. The Nepali side was headed by Secretary, Ministry of Industry, Commerce and Supplies, Government of Nepal, Mr. Gobinda Bahadur Karkee, accompanied by representatives from different Nepali Ministries and Departments.

This meeting of the IGC, a bilateral mechanism aimed at strengthening trade and investment ties, carried out a comprehensive review of the whole gamut of bilateral trade and economic relationship.  Both sides reviewed mutual market access issues, IPR and duty related issues. The agenda also included discussions 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.

During the meeting, the Indian side informed that the request of Nepal for supply of 200,000 MT wheat had been accepted. The Nepali side expressed its appreciation to the Indian side for its continued support in ensuring the supply of essential commodities to Nepal.

At the Nepali side’s request, 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. 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.

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 the Indian side positively for milk products not adequately produced in Nepal such as whey and cheese.

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. 

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 met from 12-13 January 2024 in Kathmandu.

The 2^nd edition of the Joint Business Forum was organized on the sidelines of the meeting by Confederation of Indian Industries (CII) and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on 11 January 2025. This was co-chaired by Shri N. Senthil Kumar, Director (Pipelines, Planning & Business Development), Indian Oil Corporation and Ms. Bhawani Rana, Member, Investment Board of Nepal. The JBF gave an opportunity for   businesses on both sides to highlight their suggestions to improve ease of doing business in the context of bilateral trade and investment.

India continues to be the largest trade and investment partner for Nepal, significantly contributing to both Nepali imports and exports. The discussions in the IGC are expected to further fortify the economic and commercial linkages between the two countries.

Trade transit cooperation: bilateral measures to harmonize standards and enhance cross-border connectivity and customs facilitation. Bilateral officials reviewed India-Nepal trade and transit relations, focusing on review and proposed amendments to the Treaty of Transit and the Treaty of Trade, harmonization of standards, synchronized development of trade infrastructure including rail electrification, operational facilitation for cargo in transit, addition of specific plant and processed items to quarantine/processing lists, and a commitment to form a Joint Working Group on acceptance of Online Certificates of Origin with Nepal and SAFTA to enhance regulatory coordination and connectivity.