India and Nepal on Monday reviewed the development of cross-border trade infrastructure and discussed ways to boost trade and investment, including the creation of cross-border economic zones.
These issues were discussed during a virtual meeting of the bilateral intergovernmental committee on trade and transit, seen as a further step towards normalizing ties that were affected by a border row earlier this year.
Nepal had indicated its desire to review various issues related to trade and transit agreements during Foreign Secretary Harsh Shringla’s visit to Kathmandu last month.
A statement from the Indian embassy in Kathmandu said the meeting examined the development of cross-border business infrastructure and discussed ways to promote investment, including a new proposal on the development of cross-border economic zones and holding a joint business forum meeting.
The two sides also reviewed the trade and transit treaties. The trade secretaries of the two countries pointed out that despite the Covid-19 pandemic, there was a fluid and unhindered movement of commercial and commercial cargo in trucks across the land border with the facilitation of both governments.
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“Today’s extensive discussions and progress made at the meeting are expected to further support the expansion of economic and trade ties between India and Nepal,” the statement said.
The intergovernmental committee is the main bilateral mechanism to review and set the way forward for bilateral trade and economic ties. Monday’s meeting was chaired by Commerce Secretary Anup Wadhawan and his Nepalese counterpart Baikuntha Aryal and was attended by representatives of different ministries from both sides.
Ties between India and Nepal were affected when Kathmandu issued a new political map in May claiming Indian territories in the Kalapani region. India rejected the map and the two parties agreed during Shringla’s visit to respect each other’s sensitivities and to handle the border issue through existing mechanisms.
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