India, Nepal discuss revised bilateral trade treaty | india | Hindustan Times
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India, Nepal discuss revised bilateral trade treaty

india Updated: Aug 19, 2009 22:06 IST

With India-Nepal trade expected to touch Rs 15,000 crore ($3 billion) this fiscal, commerce ministers of the two countries Wednesday discussed a proposed revised treaty to widen the scope of bilateral trade.

Commerce Minister Anand Sharma and his Nepalese counterpart Rajendra Mahato met in New Delhi to take forward the proposed Treaty of Trade and Agreement of Co-operation.

In a statement, Sharma said he hoped the proposed treaty would help in enhancing trade between the two countries. "This would increase the mutually agreed points of trade and result in both investment and employment generation," he said.

Hectic meetings are on between the countries before Nepalese Prime Minister Madhav Kumar Nepal's scheduled visit to India later this month.

On Aug 12, Nepal's Foreign Minister Sujata Koirala met Sharma and discussed trade related issues.

India is a major investor in Nepal, with over 400 projects and accounting for about 44 per cent of Nepal's foreign investment.

According to official data, trade between the two neighbours in 2008-09 stood at $1.86 billion (Rs.13,600 crore) and is expected to exceed $3 billion this fiscal.

Nepal is heavily dependent on India for foodgrain, medicines and petroleum products besides cement and steel, vehicles, machinery, and electronic and agricultural equipment.

Nepal's major exports to India consist of vanaspati ghee, yarn, textiles, juice and chemicals.