India and Nepal Hold Talks in New Delhi to Review Trade and Transit Issues

India and Nepal held detailed discussions on trade, transit, connectivity and measures to prevent unauthorised cross-border commerce during the meeting of the India-Nepal Inter-Governmental Sub-Committee (IGSC) on Trade, Transit and Cooperation to Control Unauthorised Trade in New Delhi on September 16 and 17.

The meeting brought together senior officials from both countries to review existing trade arrangements and discuss ways to make bilateral commerce and transit more efficient. India's delegation was led by Ujjwal Kumar Ghosh, Joint Secretary in the Department of Commerce, while the Nepali delegation was headed by Buddha Bahadur Gurung, Joint Secretary in Nepal's Ministry of Industry, Commerce and Supplies. Officials from relevant ministries and departments of both countries also participated in the discussions.

The Ministry of Commerce and Industry said the IGSC provides an institutional framework for examining detailed trade-related matters and facilitating bilateral trade and transit between India and Nepal. During the latest meeting, the two sides discussed market access, customs procedures, trade facilitation, product standards, food safety, plant quarantine requirements, pharmaceuticals, medical devices, AYUSH products and border infrastructure.

The delegations explored ways to improve market access for goods originating in both countries, including agricultural and dairy products, food items, medicines, medical equipment and AYUSH products. They also considered measures to strengthen customs cooperation and make cross-border trade more efficient. These included the exchange of information before consignments arrive, electronic verification of Certificates of Origin, customs automation and wider use of digital systems.

The discussions also focused on ensuring that legitimate trade can move more smoothly while strengthening safeguards against the misuse of preferential trade arrangements. Both sides stressed the importance of ensuring compliance with applicable rules and improving coordination between agencies responsible for cross-border commerce. Transit and connectivity emerged as another important area of discussion. India and Nepal reviewed road and railway links, freight movement, Integrated Check Posts and infrastructure at land ports. The two countries considered ways to make better use of existing facilities and address operational problems that can affect bilateral and transit cargo movement.

The two sides also welcomed continued cooperation on standards, food safety, plant quarantine and conformity assessment. Institutional coordination and capacity-building were discussed as part of efforts to improve the systems supporting cross-border trade. India and Nepal further emphasised cooperation among relevant agencies to facilitate legitimate commerce and tackle unauthorised trade and commercial fraud. The meeting was described as cordial and constructive, with both sides agreeing to maintain regular engagement through existing institutional mechanisms and pursue time-bound follow-up on matters that require additional technical examination.

The latest trade discussions come at a time when Nepal Finance Minister Swarnim Wagle is visiting New Delhi on a three-day trip. During his visit, Wagle met Union Finance Minister Nirmala Sitharaman to discuss bilateral economic relations and India's assistance for Nepal's recovery and reconstruction following recent floods. The meeting marked Wagle's first official visit to India since taking charge as Nepal's Finance Minister. India's Foreign Secretary and the Secretary of the Department of Economic Affairs also attended the discussions. Sitharaman expressed condolences over the deaths and damage caused by the recent floods in Nepal and reaffirmed India's support for the country's recovery and rebuilding efforts.

Nepal's Finance Minister thanked India for the assistance provided during the disaster, including relief supplies and technical support for rescue and relief operations. The two ministers also discussed broader economic cooperation, with infrastructure development and cross-border connectivity receiving particular attention. The discussions covered initiatives aimed at improving connectivity and strengthening trade, investment and people-to-people exchanges between the two countries. Both sides underlined the importance of deepening the economic partnership between India and Nepal.

During his visit, Nepal's Charge d'Affaires Surendra Thapa also hosted a dinner for Wagle in New Delhi. The Embassy of Nepal said Wagle interacted with diplomatic officials and exchanged views on Nepal-India economic relations, encouraging them to continue working towards stronger bilateral economic engagement. Before Wagle's arrival in New Delhi, Nepal's Ministry of Finance said that his visit would include meetings with Sitharaman and External Affairs Minister S. Jaishankar. The ministry identified post-disaster reconstruction and bilateral economic cooperation as key subjects for discussion. The latest developments highlight the continued focus by India and Nepal on strengthening trade, transit and economic connectivity. With both countries using established bilateral mechanisms to address practical challenges, efforts are expected to remain focused on improving border infrastructure, easing trade procedures and expanding economic cooperation.