India Lifts Weight Restrictions on Cargo Trucks in Key Nepal-India Trade Corridor

 India has agreed to lift weight restrictions on cargo trucks operating along the Kakarbhitta-Fulbari-Banglabandha corridor, ensuring Nepali freight movement is treated on par with Indian freight. The agreement was reached during the Nepal-India Inter-Governmental Committee (IGC) meeting on Trade, Transit, and Cooperation to Control Unauthorised Trade held in Kathmandu on Friday.

Key Agreements and Updates

1. Increased Weight Allowance for Nepali Trucks
   India has approved a maximum axle weight of 18.5 tonnes for two-axle vehicles and 28 tonnes for three-axle vehicles, aligning the rules for Nepali vehicles with Indian standards.

2. BIS Certification for Nepali Exports
   To boost exports, India has agreed to fast-track the certification and renewal process for Nepali goods such as cement, plywood, footwear, and zinc sheets under the Bureau of Indian Standards (BIS).

   "Delays in BIS certification have severely impacted Nepali exports for months," said Gobinda Bahadur Karkee, Secretary at Nepal’s Ministry of Industry, Commerce, and Supplies. India has assured prioritization of this issue.

3. Amendment of Transit Treaty
   India agreed to expedite the conclusion of Nepal’s proposed amendments to the Transit Treaty, allowing cargo transportation via rail to Biratnagar and Bhairahawa.

   Nepal reiterated its request for access to Mundra Port in Gujarat and Dhamra Port in Odisha, and permission for imports and exports via Kolkata Airport for third-country trade.

4. Enhanced Infrastructure and Connectivity
   Both nations will prepare detailed project reports (DPR) for two motorable bridges over the Mahakali River, connecting Jhulaghat (Baitadi) and Sirsha (Dadeldhura), funded by Indian grants.

5. Expanded Trade in Agricultural Products
   India responded positively to Nepal’s request to include additional fruits, vegetables, and herbs in its Plant Quarantine Order. New items include:

   • Sal seeds and Chayote
   • Processed plant products like Jatamasi root extract and Timur berry extract.

6. Customs and Trade Facilitation
   Nepal and India agreed to simplify customs processes and enhance cooperation between respective food safety and standards authorities to harmonize standards and ensure smooth trade.

7. Milk Exports and Livestock Products
   India raised concerns over milk exports to Nepal, requesting consideration for items not adequately produced in Nepal, such as whey and cheese. Both sides agreed to facilitate the import of livestock-related food items.

Trade Relations and Challenges

India remains Nepal’s largest trading partner, accounting for:

• Two-thirds of Nepal’s merchandise trade
• One-third of foreign direct investment (FDI)
• Nearly 100% of petroleum supplies

However, bilateral trade saw a decline in the fiscal year 2023–24. Nepal’s exports to India dropped by 3.28%, while imports from India fell to Rs996.68 billion, down from Rs1.02 trillion the previous year.

Moving Forward

The meeting underscored the importance of regular dialogue to address trade and investment challenges. Both nations emphasized the need to strengthen mechanisms for seamless trade, investment, and transit.

The agreements represent a significant step forward in enhancing Nepal-India trade relations and resolving long-standing issues affecting cross-border commerce.