Indo-nepal Trade Relations

8/8/2019 Indo-nepal Trade Relations

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TRADE RELATIONS BETWEEN

INDIA AND NEPAL

PRESENTED BY:


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ECONOMIC

LIBERALIZATION IN INDIA New industrial policy , 1991

Abolition of MRTP act

Setting up of SEBI

Investment by FII


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ECONOMIC

LIBERALIZATION IN NEPAL Nepal opened up its economy in early 1990s

with the adoption of economic reform package

The bilateral treaty signed with India in 1996

supported the trade reform program of nepal

Financial reforms were also carried out to

support trade and industrial reforms

Various sectoral strategies were introduced toattract investment.


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Chronological Overview

Period between 1950 to 1970

The share of india was more than 95% in thetotal trade transaction of nepal during 1956 to

1960

Imports from india were98.5% of toatl imports

Both imports and exports went on decreasingin

the subsequent years with a lower scale


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Period between 1971 and 1980

The share of india in total imports of

nepal was 88.2% in 1970. it declined and

reached 51.3% in 1980 The share of third countries in total

imports of nepal rose from 11.8 % to

48.7% in 1980

Share of india in total exports of nepal fell

from 81.9 % to 45.3%


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Period from 1981 to 1990

The share of india in total export of nepal

declined further and reached 40.3%

The share of india in total import of nepalcame further down to 25.5%


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Nepal-India trade treaties


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Treaty of transit 1991

Agreement of cooperation to control

unauthorized trade, 1991


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Major Import Trade Partners of Nepal (%)

Countries 2001-02 2002-03 2003-04 2004-05 2005-06India 52.1 55.3 58.0 59.8 67.1

China P.R. 4.0 3.7 4.0 5.6 4.1

Indonesia 2.6 3.1 2.4 3.5 3.5

Singapore 6.8 7.0 6.4 5.2 2.1

Germany 1.5 1.8 1.5 1.1 1.7

Thailand 3.0 2.3 3.2 2.1 1.6

Malaysia 4.4 3.1 2.7 1.9 1.5

Saudi Arabia 3.4 1.8 1.9 2.1 1.4

Japan 2.0 1.5 1.2 1.7 1.2

Korea R. 2.3 2.6 2.3 1.9 1.1

U.S.A 2.3 1.3 1.1 1.2 1.0

Source: Trade Promotion Centre


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Major Export Trade Partners of Nepal (%)

Countries 2001-02 2002-03 2003-04 2004-05 2005-06

India 59.0 52.9 57.0 66.6 68.3

U.S.A 19.8 25.4 18.0 13.0 11.6

Germany 8.5 7.1 6.6 5.3 4.7

France 1.0 0.9 1.1 1.1 2.2

U.K 1.7 2.1 3.1 1.8 2.0

Italy 1.2 1.1 1.1 1.0 1.2

Canada 0.6 0.8 1.0 0.9 1.1

Japan 1.0 0.9 1.0 0.9 1.0

Bhutan 0.1 0.1 0.1 0.3 0.4

Bangladesh 0.5 0.8 0.8 0.5 0.4

Thailand 0.1 0.2 0.2 0.1 0.1



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Direction of Nepals Foreign Trade (%)

Fiscal Year

Exports to

India

Import from

India

1960-61 99.8 94.21995-96 18.5 32.8

2001-02 59.5 41.1

2005-06 68.3 67.1



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TRQ on Nepals Exports in India

S. No. Nepalese Article Quantity in MT Per Year

1 Vegetable Fats

(Vanaspati)

100,000

2 Acrylic Yarn 10,000

3 Copper Products 10,000

4 Zinc Oxide 2,500


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PROBLEMS

Trade imbalance

Inadequate market

Frequent revision in duties and rules

Unauthorized trade

Administrative and procedural

complications and delay Understanding and Good faith


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PROSPECTS

Hydroelectric power

Tourism industry

Education and Training Mineral exploration and exploitation

Information and Communication

technology

Documents

Indo-nepal Trade Relations