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In force

India–Nepal Treaty of Trade

Trade treaty · signed 27 Oct 2009

The treaty mainly gives Nepali manufactured goods duty-free access to India on a non-reciprocal basis. It auto-renews every seven years; separate transit and rail arrangements support Indian exports moving to Nepal.

Key points

  • Non-reciprocal duty-free access to India for Nepali manufactures, except a short negative list (cigarettes, alcohol, cosmetics)
  • Annual duty-free quotas for Nepali vegetable fats (100,000 t), acrylic yarn (10,000 t), copper products (10,000 t) and zinc oxide (2,500 t)
  • Treaty auto-renews every 7 years
Rules of origin
For Nepali goods entering India: at least 30% domestic value addition and a change in 4-digit HS heading.
How to claim
Certificate of Origin under the India–Nepal Treaty (listed in DGFT Appendix 2A).

Sources · checked 30 Sep 2026: Embassy of Nepal, New Delhi – Trade and commerce between Nepal and India · Rajya Sabha answer on FTAs, 20 March 2026 (mirror) · DGFT – Appendix 2A: agencies authorised to issue CoO under FTAs/PTAs