India, Nepal seek to boost bilateral trade, investment

New Delhi, Aug 24 (IANS) Even as Nepalese Prime Minister Sher Bahadur Deuba expressed concern over the growing trade deficit with India, the two sides on Thursday agreed to enhance bilateral trade by addressing infrastructural deficiencies and trade restricting measures.

"Noting the current level of bilateral trade, the two Prime Ministers underscored that there is a considerable potential to enhance the bilateral trade, which could be harnessed by addressing infrastructural deficiencies and trade restricting measures as well as by adopting trade facilitation measures for easier market access to agricultural and industrial products," said a joint statement following delegation-level talks here between Deuba and his Indian counterpart Narendra Modi.

"Both sides agreed to cooperate towards strengthening testing and certifying laboratories, establishing quarantine facilities and harmonising standards," it stated.

Bilateral trade between India and Nepal stood at $4.8 billion in 2015-16.

While Nepal's exports to India stood at $371 million in 2015-16, India's exports to the Himalayan nation stood at $4.48 billion during the same period.

During the talks, both sides agreed on early conclusion of the letters of exchange for transit of bulk cargo to Nepal using multi-modal transport, movement of traffic in transit via Nepal and on amendment to Rail Services Agreement.

According to the statement, both sides agreed to take steps for early upgrade and operationalisation of the agreed trade points of Dhangadhi-Gauriphanta, Guleria-Murthia, Jatahi-Pipraun and Pashupatinagar-Sukhiapokhri, while both Modi and Deuba stressed on "the need for channelising more direct investments from India into Nepal".

Deuba also shared information on the recent steps taken by his government to spur economic reforms with the aim of enhancing investor confidence in his country, it added.