India, Nepal sign new trade treaty

India and Nepal today signed a new treaty making it easier for the Nepalese manufactured products to enter the Indian market duty-free.

Besides, the two countries signed the agreement to control unauthorised trade.

Under the new treaty, which replaces the 1996 agreement, the validity of the trade pact between the two neighbouring countries has been increased from five to seven years, making the business regime stable.

Under the bilateral arrangement, the Nepalese manufactured products are allowed to enter India free of basic customs duty. However, India does not expect the same treatment from the neighbouring country.

The agreement was signed here by India's Commerce and industry minister Anand Sharma and Nepal's minister of commerce and supplies Rajendra Mahto.