KATHMANDU, Dec 1: The Nepal–India Chamber of Commerce and Industry (NICCI) has submitted a set of recommendations to Home Minister Om Prakash Aryal, calling for strict monitoring of unauthorized trade occurring through the Nepal–India open border.
Recently, the Government of India (GoI) has reduced and adjusted GST on various domestically manufactured goods in order to increase competitiveness, maintain demand and boost domestic consumption. As a result, the Maximum Retail Price (MRP) of daily-use items and other Indian-made products has dropped significantly, making them cheaper than similar goods produced in Nepal.
NICCI and ASOCHAMUP seal deal to facilitate trade and investmen...
However, despite these GST changes in India, the Government of Nepal has not yet adjusted customs duties or tax rates on raw materials and finished goods, nor introduced relief measures to lower production costs or implemented industry-friendly policies to address the impact of India’s GST revisions. Consequently, Nepali-manufactured products are struggling to remain price-competitive in the domestic market.
This widening price gap has led to a sharp rise in unauthorized trade, severely affecting Nepali industries and formal businesses, reducing their competitiveness, and increasing the flow of goods into the market through informal channels.
In this context, NICCI submitted a memorandum to Home Minister Aryal. NICCI President Sunil KC presented the memorandum along with recommendations aimed at controlling the rapid growth of unauthorized trade.
The Home Minister has expressed commitment to taking the necessary and appropriate measures to control unauthorized trade in line with the recommendations submitted by NICCI.
