India, Nepal inks new trade treaty

New Delhi, Aug 22 (ANI): India and Nepal on Saturday included a new trade treaty and agreement to control unauthorized trade, particularly from a third country.

The treaty is aimed at widening the bilateral economic engagements.

The new agreement will replace the existing arrangements since 1991, which was extended from time to time.

Commerce Secretary Rahul Khullar and Nepalese Secretary of Commerce and Supplies Purushottam Ojha in New Delhi inked the agreement on the last day of Nepalese Prime Minister Madhav Kumar Nepal's visit.

External Affairs Minister S. M. Krishna and Nepalese Minister of Commerce and Supplies Rajendra Mahto were present during signing of agreement.

The trade treaty, which has been negotiated for the last two years, aims at enlarging the scope of the existing institutional framework. As per the treaty India gives duty-free access to its market to goods manufactured in Nepal.

The bilateral trade takes place generally in Indian currency barring for a few items. Indian rupee is legal tender in Nepal and is freely convertible. (ANI)