New treaty to allow easier access to Nepalese goods in India
India today signed a new treaty with Nepal allowing easier duty-free access to Nepalese products by opening air routes for the freight and designating a higher number of land trade route stations.
Kathmandu: India today signed a new treaty
with Nepal allowing easier duty-free access to Nepalese
products by opening air routes for the freight and designating
a higher number of land trade route stations.
Besides, the two countries signed an agreement to control
the unauthorised trade.
Under the new treaty, which replaces the 1996 agreement,
the validity of the trade pact between the two neighbouring
countries has been increased from 5 to 7 years, making the
business regime stable.
Under the bilateral arrangement, the Nepalese
manufactured products are allowed to enter India free of basic
customs duty. However, India does not expect the same
treatment from the neighbouring country.
The agreement was signed here by India`s Commerce and
Industry Minister Anand Sharma and Nepal`s Minister of
Commerce and Supplies Rajendra Mahto.
As per the new treaty, the trade conducted in Indian
rupee will be treated at par with the transactions done in the
hard currency like the dollar.
The number of designated land routes have been increased
to 26 from 22. Bilateral trade will also be allowed through
international airports connected by direct flights between
Kathmandu/ Delhi, Mumbai, Kolkata and Chennai.
The Rs 20,400-crore bilateral trade will "shift to higher
level", Sharma said after signing the agreement.