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.
- 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
The SAARC free trade area gives Indian goods reduced duties (0–5% after phase-down) in other South Asian countries, except items on each country's sensitive list. In practice trade with Pakistan is shut: Pakistan suspended bilateral trade in August 2019, and India banned all direct and indirect imports from Pakistan from 4 May 2025.
- Non-LDC members (India, Pakistan, Sri Lanka) were to cut tariffs to 0–5%; LDC members (Bangladesh, Bhutan, Maldives, Nepal, Afghanistan) over a longer period
- Each member keeps a sensitive (negative) list excluded from concessions
- Afghanistan joined in 2007
- Pakistan: no usable preferential trade — Pakistan suspended trade with India in Aug 2019; India banned imports and transit of Pakistani goods from 4 May 2025
- Rules of origin
- Change of tariff heading (4-digit) plus at least 40% domestic value content (30% for LDC exporters); product-specific rules for 191 lines.
- How to claim
- SAFTA Certificate of Origin, issued by authorised Indian agencies; apply on DGFT's Trade Connect eCoO platform (www.trade.gov.in).
Sources · checked 30 Sep 2026: APEDA AgriExchange – SAFTA ready reckoner · Rajya Sabha answer on FTAs, 20 March 2026 (mirror) · The Tribune – India bans imports from Pakistan, suspends shipping and postal links (May 2025) · DGFT – Appendix 2A: agencies authorised to issue CoO under FTAs/PTAs