India-Nepal Trade Treaty · FTA guide, rules of origin & tariff schedule

India-Nepal Trade Treaty.

India-Nepal Treaty of Trade

India-Nepal Trade Treaty — In Force ✅. Goods — open border with zero tariff on most goods. India-relevant trade: USD USD 7.5B.

India + NepalParties

In Force ✅Status

Open border — continuousIn force

1991 (regularly renewed)Signed

Coverage

What this agreement covers.

Goods — open border with zero tariff on most goods

Key benefits

Why this agreement matters.

✓ Open border — no customs formalities for most bilateral trade
✓ 0% duty on virtually all Nepal-India trade
✓ India is Nepal's largest trade partner (>65% of total trade)
✓ Treaty renewed every 7 years — stable framework

India position

How this FTA relates to India.

Both are parties — open border trade

Aggregate trade volume among parties: USD 7.5B

Risk framework

FTA compliance risks.

Risk	Assessment	Mitigation
Nepal is landlocked — all trade routes via India	High — single corridor dependency	Ensure India transit facilitation documentation for Nepal third-country imports
Nepal trade deficit — Nepal imports far more from India than it exports	Low risk — but Nepal currency management creates occasional friction	Invoice in USD or INR; maintain INR/NPR dual-currency documentation

Beneficiary verticals

Which sectors benefit.

Agro Fmcg Pharma Engineering Textiles Construction-materials

Cited from

Referenced by these country pages.

Nepal

Frequently asked

FAQ · India-Nepal Trade Treaty.

What is the India-Nepal Treaty of Trade?

A bilateral trade treaty providing open border access and zero/low tariff trade between India and Nepal. Nepal uses Indian ports (Kolkata/Haldia) for third-country trade. Renewed every 7 years — most recently 2020.

What are the top Indian exports to Nepal?

Petroleum products (largest), pharma, vehicles, machinery, FMCG, textiles, construction materials. India supplies ~65% of Nepal's total imports.

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India-Nepal Trade Treaty.

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What this agreement covers.

Why this agreement matters.

How this FTA relates to India.

FTA compliance risks.

Which sectors benefit.

Referenced by these country pages.

FAQ · India-Nepal Trade Treaty.

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