India and Nepal discuss facilitating legitimate trade
India and Nepal have discussed ways to facilitate legitimate trade and strengthen mechanisms to ensure compliance with applicable rules and prevent misuse of preferential trade arrangements, an official statement said on Friday.
The India-Nepal Inter-Governmental Sub-Committee (IGSC) on Trade, Transit and Cooperation to Control Unauthorised Trade was held here on September 16-17, 2026. The IGSC is an important bilateral institutional mechanism for detailed examination of trade and trade-related issues and for facilitating bilateral trade and transit. Issues relating to agricultural products, dairy, food products, pharmaceuticals, medical devices and AYUSH products, along with standards and phytosanitary requirements, were considered in the meeting, the commerce ministry said. “The discussions focused on facilitating legitimate trade while strengthening mechanisms to ensure compliance with applicable rules and prevent misuse of preferential trade arrangements,” the ministry said.
Besides, they also reviewed rail and road connectivity, freight movement, Integrated Check Posts and land-port infrastructure.
In a separate statement on a meeting of Ministers of the Shanghai Cooperation Organization (SCO) Member States held on September 17 in Dushanbe, the ministry said India has emphasised the important role of trade facilitation and digitalisation in reducing the cost and time associated with trade.
“In this context, India highlighted the need for simplified customs procedures, paperless trade and electronic exchange of documents, alongside stronger multimodal connectivity and reduced transit times,” it said.
India also called for greater cooperation among SCO Member States to diversify and strengthen supply chains in strategic sectors, including agriculture, critical minerals, pharmaceuticals, manufacturing and electronics.
The potential for enhanced cooperation in energy security, renewable energy and green hydrogen was also discussed.
“India underscored the role of digital payments, cross-border payments and accessible trade finance, particularly for MSMEs and start-ups,” the ministry said.
