Prime Minister Narendra Modi and his Nepalese counterpart Pushpa Kamal Dahal ‘Prachanda’, on Thursday, discussed enhancement of India-Nepal cooperation in areas including trade, energy, border infrastructure and digital payments, and witnessed the signing of seven pacts and several project launches in key sectors.
Prachanda, who is on a four-day official visit to India, raised concerns around Nepal’s growing trade deficit with India and unresolved boundary matters between the two nations but Modi assured that all issues would get sorted out.
“We will continue to strive to take our relationship to Himalayan heights. And in this spirit, we will resolve all the issues, be it boundary related or any other issue,” Modi said in his address to the media after the bilateral talks.
Pacts signed
India and Nepal also signed key trade and transit agreements, including establishment of new rail links to increase physical connectivity, and a long-term power trade agreement.
“Today, India and Nepal concluded a long-term power trade agreement under which India will import 10,000 mega watt of power from Nepal over the next ten years. This will give strength to the power sector of our countries.” Modi noted.
The two leaders virtually inaugurated integrated check posts at Rupaidiha in India and Nepalgunj in Nepal and virtually flagged off a cargo train from Bathnaha in Bihar to the Nepal custom yard.
Prachanda called for efforts to bring down Nepal’s growing trade deficit with India through steps such as lifting of anti-dumping measures against jute products, easy quarantine procedure for its agriculture products and simplified rules of origin (ROO) for other products.
“India is Nepal’s largest trade partner. I have requested PM Modi ji for non reciprocal market access to India with more flexible and easy quarantine procedure for Nepal’s agriculture products and simplified ROO for other products,” he said. In 2022-23, India exported goods worth $8 billion to Nepal while its imports were at $840 million.
“We also discussed establishment of well-equipped testing labs along the major border points and formalising of the arrangement for mutual recognition of test certificates,” he added.
India, recently extended anti-dumping duty on imports of certain jute products from Nepal and Bangladesh for five years, to protect its vulnerable domestic industry from cheap inflows, but Prachanda said that the move was hurting Nepal’s jute industry and the duties should be revoked.