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Strengthening India-Nepal Economic Relations

Author

Listed:
  • Nisha Taneja

    (Indian Council for Research on International Economic Relations (ICRIER))

  • Shravani Prakash
  • Samridhi Bimal

Abstract

The main objective of this paper is to suggest policy measures which can increase bilateral trade and investment between India and Nepal. We analyse the bilateral trade patterns and estimate the maximum additional trade potential. We discuss a wide range of issues of importance pertaining to bilateral trade, including tariffs, levy of an agricultural reform fee, under-utilization of the tariff rate quota, non-tariff measures, issues related to ROO and physical barriers to cross border movement of goods. We also analyse the trend and changing sectoral composition of India's investment in Nepal. We discuss barriers and opportunities for Indian investment in Nepal. The paper concludes by charting a way forward for bolstering economic cooperation between the two countries by listing down recommendations for enhancing trade, addressing non-tariff barriers, upgrading infrastructure to improve connectivity and enhancing Indian FDI in Nepal.

Suggested Citation

  • Nisha Taneja & Shravani Prakash & Samridhi Bimal, 2019. "Strengthening India-Nepal Economic Relations," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 381, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    • Handle: RePEc:bdc:wpaper:381
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    References listed on IDEAS

    as
    1. Shiro Armstrong, 2007. "Measuring Trade and Trade Potential: A Survey," Asia Pacific Economic Papers 368, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
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