India, Nepal to work on trade pact
India and Nepal are likely to discuss the broad contours of a new trade treaty during Nepal PM Pushpa Kamal Dahal’s (Prachanda’s) first official visit to New Delhi, reports Gaurav Choudhury.business Updated: Sep 14, 2008 20:53 IST
India and Nepal are likely to discuss the broad contours of a new trade treaty during Nepal Prime Minister Pushpa Kamal Dahal’s (Prachanda’s) first official visit to New Delhi since taking office last month.
A wide range of sectors, including tapping resources of sub-Himalayan water bodies to address hydropower woes of both the countries are expected to be covered during Prachanda’s four-day visit from Sunday.
The proposed discussions would be much larger in scope than the existing 12-year-old trade treaty that governs movement of goods between the two countries.
“It is important to raise supply capability and exports of Nepalese products through alliances with Indian manufacturing companies,” the official said. “Such issues cannot be addressed under the existing trade agreement.”
Sources said many Indian entities including ITC, Ashok Leyland, Tata Motors, GMR, and National Mission on Bamboo Applications have shown interest in investing in Nepal.