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Nepal-India Trade Treaty
By KTM Metro Reporter in Kathmandu
On October 27, 2009, Nepalese Minister for Commerce Rajendra Mahato and Indian Minister for Commerce and Industry Ananda Sharma have signed the renewed Nepal-India Trade Treaty in Kathmandu. Since the Trade Treaty of 1996, Nepal and India have been renewing the treaty every five years, from now on both the ministers have agreed on renewing it every seven years.
Following the renewed Nepal-India Trade Treaty, new four additional entry customs will be opened at four different places. Nepal and India have 22 entry places. From now on such entry places are increased to twenty-six. The additional entry places will help to increase the trade between Nepal and India and will reduce the transportation cost to both the countries.
Following the renewed Nepal-India Trade Treaty, Nepal will have direct flights to Delhi, Kolkatta, Mumbai and Chenai. Such additional flights will help to increase the trade between Nepal and India.
So far, the trade between Nepal and India has been in Indian rupees, after the renewed Trade Treaty, the trade between Nepal and India will be in exchangeable currencies.
Some trade experts have said that a lot of things the Indian authorities have agreed on during the visit of Prime Minister Madhav Nepal to India have been missed in the renewed Nepal-India Trade Treaty and the Indian central government has agreed on exempting the tax on the Nepalese goods but the State governments will continue to levy taxes on Nepalese goods so practically Nepalese goods will not benefit from the exemption of central government’s tax.
