India, Nepal Review Trade Access, Customs and Cross-Border Connectivity

India and Nepal reviewed measures to expand market access, improve Customs coordination and strengthen cross-border connectivity during a two-day trade meeting in New Delhi, the Ministry of Commerce and Industry said.

The India-Nepal Inter-Governmental Sub-Committee on Trade, Transit and Cooperation to Control Unauthorised Trade met on September 16 and 17.

The Indian delegation was led by Ujjwal Kumar Ghosh, joint secretary in the Department of Commerce. Buddha Bahadur Gurung, joint secretary in Nepal’s Ministry of Industry, Commerce and Supplies, headed the Nepali side. Senior officials from relevant ministries and departments of both countries also participated.

Officials considered steps to improve access for Indian and Nepali products, including agricultural and dairy goods, processed foods, pharmaceuticals, medical devices and AYUSH products.

Standards, food safety, plant-health requirements and conformity assessment procedures were also discussed. Both sides supported closer institutional coordination and capacity-building to reduce regulatory barriers and facilitate the movement of goods.

According to the ministry, the IGSC provides an institutional mechanism for examining trade-related concerns and improving bilateral trade and transit arrangements.

India and Nepal discussed strengthening Customs cooperation through the pre-arrival exchange of cargo information, electronic verification of Certificates of Origin and increased automation and digitalisation of clearance procedures, news agency ANI reported.

These measures are intended to facilitate legitimate trade while ensuring compliance with applicable regulations. Officials also examined ways to curb commercial fraud and prevent the misuse of preferential trading arrangements.

Both countries agreed that their regulatory and enforcement agencies should continue cooperating to tackle unauthorised trade without disrupting genuine cross-border commerce.

Rail and road links, freight movement, Integrated Check Posts and land-port infrastructure were also reviewed. Officials assessed the use of existing facilities and discussed operational bottlenecks affecting bilateral and transit trade.

The two sides agreed to remain engaged through established institutional mechanisms and pursue time-bound action on issues requiring further technical examination. The ministry described the discussions as cordial and constructive, ANI reported.

Merchandise trade between India and Nepal reached $9.39 billion in FY26, recovering from $7.87 billion in FY24, according to Commerce Ministry data published by the Embassy of India in Kathmandu.

Bilateral trade had peaked at about $11.02 billion in FY22 before declining to $8.92 billion in FY23 and $7.87 billion the following year—a cumulative drop of approximately 28.5%.

India’s exports to Nepal stood at $7.45 billion in FY26, while imports from Nepal totalled $1.94 billion. India accounted for about 62.3% of Nepal’s external trade, while Nepal was India’s 12th-largest export destination during the financial year.