Sat, Oct 31, 2026 • 4:40 PM Nepal Time • Kathmandu, Nepal
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Nepal and India Agree to Advance Trade and Transit Cooperation, Discuss Agricultural Exports and Border Infrastructure

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Summary:

Nepal and India held a meeting of the Inter-Governmental Sub-Committee (IGSC) on Trade and Transit in New Delhi on September 16–17, 2026 (Bhadra 31–Ashoj 1, 2083 BS), focusing on strengthening bilateral trade and transportation arrangements. According to a press release issued by Nepal’s Ministry of Industry, Commerce and Supplies on Ashoj 1, 2083 BS, the Nepali delegation was led by Joint Secretary Ramesh Chandra Tiwari, while the Indian delegation was headed by Vipul Kumar Bansal, Joint Secretary at India’s Ministry of Commerce and Industry. Senior officials from Nepal’s Ministry of Finance, Department of Customs, Department of Food Technology and Quality Control and the Nepali Embassy in New Delhi also participated in the discussions.

The meeting covered several important issues, including revision of the Trade and Transit Treaties, facilitation of additional trade routes, mutual recognition of quality standards and improvement of trade infrastructure. The two sides also discussed advancing the implementation of previously exchanged Letters of Exchange (LoEs) and addressing outstanding bilateral trade matters. Nepal emphasized the need to improve market access for agricultural, medicinal herb and dairy products, calling for cooperation on agricultural product exports, quality certification and mutual recognition of testing laboratories. The Nepali delegation also raised concerns about the requirement for food products to obtain certification from Indian authorities and sought arrangements to facilitate exports through recognized Nepali laboratories.

A major focus of the discussions was agricultural trade and product certification, particularly improving access to the Indian market for Nepali agricultural goods, including ginger and other products. Both sides considered arrangements for recognizing testing laboratories, facilitating imports of agricultural products and incorporating additional agricultural commodities into India’s Plant Quarantine Order. Nepal also raised matters related to exports of petroleum products and other essential goods, while seeking smoother transit and supply arrangements. Discussions further addressed the development of road and railway infrastructure, the establishment of laboratories at land and border customs points, and improvements in cross-border trade logistics.

Both delegations expressed their commitment to preparing joint technical work plans and advancing cooperation in priority areas to resolve outstanding trade and transit issues. The ministry stated that the meeting created an important foundation for making Nepal–India bilateral trade more effective, results-oriented and sustainable. However, the press release does not confirm the signing of a revised trade treaty, the final approval of new trade routes or the completion of proposed infrastructure projects. The discussions instead reflect continued efforts by both countries to reduce trade barriers, improve market access and strengthen economic connectivity.

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