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Show Of Technology

Six-day-long Indian Trade Exhibition offers Nepalese businessmen an opportunity to explore joint ventures

By KESHAB POUDEL

If on-going Indian Trade exhibition is any indication, there is a big possibility for Nepalese industrial products to have market in India. The show also points out areas for joint ventures between the two countries.

PM Koirala inaugurating Indian Trade fair : Opening opportunities

As focused by the fair, agriculture is one of the major sectors for Nepal to narrow down trade deficit with India. Along with technological and other development, the exhibition displays agro-based products of India particularly agricultural tractors, trailers and other equipment, confectionery, tea, coffee, rice spices and tobacco.

Nepal has geographical advantage as it can produce off-season vegetables and fruits to meet the demand of Indians. India is the largest market for Nepalese products so as Nepal for the Indian products as both countries have equal opportunities to expand their market base.

As India has achieved many progress in the areas of agricultural technology, Nepal can get a lot of benefit from its proximity with India.

"The exhibition shows the strengthening relations between the two countries in the area of industry and trade," said Prime Minister Girija Prasad Koirala, inaugurating the Indian Trade Fair on Tuesday morning (September 19).

Even after several years of growth in economic sphere, Nepal's trade imbalance with India continues to grow. The bilateral trade is highly in favor of India.

"The fair provides an ideal opportunity to explore and expand ideas of cooperation between India and Nepal and bring two countries much closer to understand the need of each other," said Ashok Kumar, the deputy chief of the mission of Indian Embassy at Kathmandu.

According to an official report, Nepal imports goods from India worth 563.77 crore Indian rupees whereas Nepal's export to India is just 467 crore Indian rupees. At a time when economic cooperation between the two countries is growing rapidly, there requires regular interactions in trade and industrial sectors.

In the mean time imposition of additional duties -- the SAD -- on Nepalese products had negative impacts on the import side. Although India has already agreed to waive the SAD, it is yet to announce the formal decision on this regard.

Trade fairs and interactions, experts argue, are one of the effective media to counter the challenges and sort out the differences in different sectors.

"We are also making efforts to show the potential area of investment in Nepal as well as the way to expand the trade with India," said Vijaya Kumar, Director of ITF 2000. "The exhibition also helps in the area of technology transfers and improve India Nepal trade in future."

Nepal-India trade relations has shown steady growth over the years. Thanks to the Nepal-India Trade Treaty signed in December 1996, Nepalese products have the opportunity to enter into Indian markets. For the few years, the vegetable ghees, noodles and other agro-based products found easy access to the Indian market but it could not last long.

Even the number of Indian joint ventures in Nepal jumped to grasp this opportunity. For some years, the treaty laid the foundation for growth of Nepalese exports to India and significant increase in Indian investment in Nepal.

Indian Trade Exhibition

But the mood has changed following the restrictions placed by Indian government on Nepalese products. In the name of protecting interest of Indian industry, additional taxes were imposed on Nepalese products. While Nepal gives free access to almost all Indian products, Nepalese products receive discriminatory treatment.

"The exhibition attests not merely to competitive searching options but attractive joint venture collaborations and technology transfer prospects," Gupta said. In this back drop, fourth Indian Trade Exhibition has a special significance.

In the on-going exhibition, along with agro-based products infrastructures, automobiles like two wheelers, transport vehicles, accessories and ancillaries, diesel engines, pump-sets, electronic and engineering goods and equipment are on the display. Electrical goods and fittings, hand tools, scientific instruments and apparatus, domestic appliances, home electronic, kitchen-ware, watches, garments, textiles, footwear, leather goods, machinery, handicrafts and jute products.

Telecommunication equipment, information technology and non-conventional energy items and consumer products are other highlights of the 6-day-long exhibition.

Organized in association with the India Embassy in Nepal with the active cooperation of Nepal-India Chamber of Commerce and Industry and with the support of Federation of Nepalese Chamber of Commerce and Industry, the exhibition will showcase innovative and quality products, services and technologies matching global standards.