Trade with China via Nepal on cards

NEW DELHI: India could soon have a new trade route to China via Nepal. India and Nepal discussed using Nepal as transit route to China to increase trade in the region at a recently-concluded trade meeting here.

The two countries have, in principle, agreed to the idea of working towards a transit route to China, which would help increase trade flow in the region, at the recently concluded meeting of the India-Nepal inter-governmental committee (IGC) on trade and transit and cooperation. Obviously, China too has to agree to the idea.

Trade talks between India and Nepal restarted after a gap of almost two years, a period when Indo-Nepal political ties had reached an all-time low.

Sources said that the greatest advantage of such a route would be that it would be an all-weather one. While the entry point is being envisaged via Tibet, the exact route, however, has not yet been identified. A joint study on this is expected to be initiated some time soon.

A official here said that the transit route would give a fillip to Nepal’s trade, create infrastructure and also give more access to the Chinese market. It is also being seen as a means of boosting Sino-Indian trade ties.

Nepal has been saying that it is ready to serve as a transit country between India and China. At the talks, the two sides also discussed ways to assist Nepal’s economic recovery and implementing non-reciprocal duty free access for Nepali goods.

The trade talks, that concluded on Friday, were led by commerce secretary S N Menon on the Indian side, while the Nepali delegation was led by secretary at the ministry of industry, commerce and supplies, Bharat Bahadur Thapa.

Officials described the talks as positive and cordial. The talks are supposed to be held every six months to review bilateral trade, investment, infrastructure projects and transit issues.

Meanwhile, other issues that were discussed at the talks include a possible railway link from India to Kathmandu as well as an oil pipeline. Officials also discussed the India-Nepal trade treaty that is going to be reviewed in March 2007, as well as possible new Indian investments in Nepal.