Kathmandu: The Nepal-India Chamber of Commerce and Industry (NICCI) has welcomed the amendment to India-Nepal Rail Services Agreement that took place on July 10, during which letters of exchange were shared between the officials of the two countries. NICCI—the bi-national organization of Nepali businessmen and industrialists having business relations with India and Indian business community doing business with Nepal—has welcomed the signing of letters of exchange and expressed happiness over the development.
The rail service agreement, says the press note issued by NICCI, was yet to be in line with the spirit of evolving world trade and regional agreements such as SAFTA and BIMSTEC. NICCI, says the press note, was therefore advocating for the review of various agreements in line with the changing context.
NICCI has been raising concerns with over three dozen issues related to commerce, transport, trade and logistics in various forums such as India-Nepal Secretary Level Inter-Governmental Committee (IGC), India-Nepal Joint Secretary Level Inter-Governmental Committee (IGC), and other bilateral mechanisms between Nepal and India for over ten years.
“In this context, it is a good thing that letters of exchange between the two countries have been signed to make Nepal-India trade more relevant,” says the press note. The amendment to the railway service agreement between Nepal and India is expected to enhance trade and transport between the two countries and make Nepal’s trade with third world countries much easier.
As transportation costs will be much cheaper, the Nepali products will be more cost-competitive and imported goods will also be cheaper, which will ultimately contribute to long-term mutual benefits of the two countries, says the press note issued by NICCI.