According to 2007-08 figures, Nepal's export to India was valued at only $592.4 million while its imports from India was valued at $2216.6 million.Main items of Nepal's export to India are GI sheet, threads, polyster yarn, vanaspati (hydrogeneted vegetable oil), textiles (cotton, synthetic and others), juices, sacks, cardamom, MS pipe ans aluminium section. It main imports from India are petroleum products, transport vehicles and parts, MS billet, medicine, machinery equipment and spare parts, hot and cold rolled sheets in coils, electrical equipment and goods, threads, chemicals and MS wire rod.

The visiting Nepalese Prime Minister, Madhav Kumar Nepal addressing a business meet organised by the three apex industry bodies - FICCI, Assocham and CII - in Delhi said : 'India's continuously high economic growth rate despite the current global financial and economic crisis is a proof that Indian economy has matured and thus has placed itself among major emerging global economic power.....It is only natural that as the closest neighbour, we are looking forward to positive spillover effects from economically resurgent India....Despite our long and intense economic relations, ever growing trade deficit remains a matter of concern to Nepal.'

Nepal is leading a high level official and business delegation to India and is accompanied by five Cabinet ministers. The delegation will meet captains of Indian industry also in Mumbai on August 21.

Saying that the full potential of bilateral trade and investment still remained untapped, Nepal urged the Indian industry to take advantage of the situation and invest in his country. He said that investment climate in Nepal was likely to improve with the adoption of the new Constitution and the success of the peace process. 'We will do our best to ensure security and pecefull environment in the country by building consensus and cooperation among all parties including those in the Opposition. We have already come out with a new security plan, which we are committed to implement,' he said.

The Nepalese Prime Minister said that he was committed to establish a high level investment board to clear all big projects and quickly provide as much facilities as possible and help foreign investors operationalise their projects at the earliest. Nepal has opened up almost all sectors for foreign investment. Procedures for investment have been simplified and repatriation of profit gauranteed by law, he said.

India is a major investor in Nepal with 130 operating projects out of 142 already approved

The Nepalese Prime Minister revealed that his country's new industrial Policy would be comprehensive and effective in attracting foreign investment by eliminating double taxation, promoting transfer of technology, enhancing productivity and competitiveness of the industrial sector. Special attention would be given to the areas of competitive advantage and comparative benefits, development and operationalisation of special economic zones, strengthening of the industrial governance and promoting collaboration with all.

On improving bilateral trade, he said that his government has contemplated more trade facilitation measures, removal of non-tariff and para tariff measures, enchancement of supply side capacity by attracting joint ventures and foreign invests. He hope that India should also initiate adequate trade facilitation measures vis-a-vis Nepal.

Nepal and India are among the eight countries who are parties to the South Asia Free Trade Area (SAFTA).

The President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Narendra Kumar Joshi hoped that the proposed modification in the trade treaty would aim at removal of tariff barriers, CVD, canalisation of imports, quota and discriminatory taxes, restrictions on movement of agricultural products and increase in number of border custom points and enhancing facilities, expediting setting up of test laboratories and recognising Nepal standard in India and more flexibilitry in the Rules of Origin. He said that joint task force have started its work and is expected to submit its report by the end of August, this year.

The acting President of Confederation of Nepalese Industry (CNI), Narendra Kumar Basnyat said that Nepal needs electrified railway running from east to west, an alternative international airport at Nijgadh, a East-West highway, three 800 Kv power transmission lines from three major river basins in Nepal to Indian border for providing easy power evacuation to Indian markets. Besides there are more than 25,000 MW hydropower projects waiting to be developed for Indian market with money and technology from India.

He urged the Indian industry to utilise rich deposits of cement grade limestone and abundant medicinal herbs found in Nepal. He called upon the Indian government and the industry to set up Special Economic Zone near the southern border in Nepal, designate and set up special `trade corridors' that would link Bangladesh, Bhutan, India and Pakistan, allowing Indian companies to be listed in Nepal Stock Exchange and allowing Nepalese companies to be listed in the Indian stock exchanges .#