Press Release

November 30, 2025, Kathmandu.

The Nepal–India Chamber of Commerce and Industry (NICCI) has submitted a suggestion to Home Minister Om Prakash Aryal requesting strict monitoring of unauthorized trade taking place through the Nepal–India open border region.

Recently, the Government of India, with the aim of making India’s domestic manufactured products competitive in the market, maintaining demands, and increasing domestic consumption as well, has strategically decided to reduce and adjust GST on Indian products. As a result, the Maximum Retail Price (MRP) of daily-use goods and other items produced in India has significantly decreased, which made those items cheaper than produced in Nepal.

However, despite these changes in GST in India, the Government of Nepal has not yet adjusted customs duties and tax rates on raw materials and finished goods so far, nor introduced relief programs to reduce production costs, or introduced any industry-friendly policy to address the impact caused by the GST changes in India. Due to this, Nepali manufactured products are struggling to remain price-competitive with Indian products in Nepali market.

Because of this price difference, the unauthorized trade has increased sharply these days, severely affecting Nepali industries and formal businesses, making them uncompetitive, and causing an uncontrolled flow of goods in the domestic market through informal channels.

In this regard, the Nepal–India Chamber of Commerce and Industry (NICCI) submitted a memorandum to Home Minister Om Prakash Aryal. The President of NICCI, Sunil K.C., presented the memorandum along with recommendations for controlling the growing unauthorized trade.

In the present context, to ensure proper implementation of the Nepal–India Trade Treaty, protect legitimate trade, and support the sustainability of the industrial sector, NICCI urged the Ministry of Home Affairs to take immediate action, along with the following recommendations:

• Strengthen strict monitoring at the 22 customs points to control unauthorized trade.
• Implement a highly effective cooperation and coordination system among Nepal Police, Armed Police Force, Customs, and border-management related agencies.
• Conduct special monitoring of sensitive goods whose price risk has increased after the GST changes in India.
• Launch targeted enforcement drives to control large-scale illegal trade and goods imported with under-invoicing.
• Take immediate administrative measures to prevent misuse between formal and informal trade with the aim of protecting lawful industries and traders.

The Home Minister expressed commitment to taking necessary and appropriate measures to control unauthorized trade in line with the association’s recommendations.