India-Nepal IGC Meeting Concludes with Key Decisions to Boost Trade and Transit

The India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade concluded its two-day meeting in Kathmandu on January 11, 2025. Led by Indian Commerce Secretary Sunil Barthwal and Nepali Commerce Secretary Gobinda Bahadur Karkee, the discussions focused on enhancing bilateral trade and economic relations through several critical agreements.

India has agreed to Nepal’s request for the supply of 200,000 metric tons of wheat, a move welcomed by Nepal as a sign of India’s continued support in addressing essential commodity needs.

Additionally, India has extended its axle weight regulations for vehicles carrying transit cargo along the Kakarbhitta-Banglabandha route via Phulbari, facilitating smoother transportation.

Nepal gained concessions on agricultural exports with India’s inclusion of Sal Seeds and Chayote in its Plant Quarantine Order. Requests for the inclusion of other processed plant products such as Jatamasi root extract and Timur berry extract were also approved, opening new avenues for Nepali agricultural goods in the Indian market.

The meeting prioritized cross-border trade infrastructure, including the electrification of the Raxaul-Birgunj rail line and the development of new Integrated Check Posts.

Both sides expressed a shared commitment to enhancing connectivity and aligning standards to boost trade efficiency. Digital trade facilitation also took a step forward with the decision to form a Joint Working Group to explore the acceptance of online Certificates of Origin between Nepal and SAFTA countries.

Discussions highlighted challenges in the dairy trade, with India urging Nepal to ease import restrictions on milk products such as whey and cheese, which are not sufficiently produced locally. Nepal indicated its willingness to address these concerns.

On the sidelines of the IGC, the Joint Business Forum facilitated dialogue between industry leaders from both countries, focusing on reducing trade barriers and fostering private sector collaboration. The forum underscored the importance of aligning trade policies to improve the ease of doing business.

India remains Nepal’s largest trade and investment partner, and the outcomes of the IGC reflect a mutual commitment to strengthening economic ties. By addressing key issues and fostering connectivity, the meeting has laid the groundwork for a more integrated and prosperous bilateral trade relationship.