PHD Research Bureau 2

India – Nepal Economic Ties:

New Horizons
June 2018

PHD RESEARCH BUREAU

PHD CHAMBER OF COMMERCE AND INDUSTRY

PHD House, 4/2 Siri Institutional Area, August Kranti Marg, New Delhi 110016
Phone: 91-11-49545454 | Fax: 91-11-26855450, 26863135
Email: [email protected] | Website:www.phdcci.in

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 From the Desk of President,
PHD Chamber

The shared history, traditions and culture connect

India and Nepal. This connection has been
strengthened in the recent years with visits of
Mr. Anil Khaitan Hon’ble Prime Minister of India Shri Narendra
Modi to Nepal and Hon’ble Prime Minister of
Nepal Shri K P Oli to India.

India has been holistically pursuing the

“neighbourhood first” policy, wherein it has
provided substantial financial and technical
development assistance to Nepal, focusing on
establishment of infrastructure at the grass-root
level in the areas of health, water resources,
education, and rural and community
development.

We, at the PHD Chamber, aims to strengthen the

bilateral cooperation with our closest neighbour,
where there are tremendous opportunities in
developing food processing value chains, tourism
development, hydel power generation, banking
and financial services, education services, and
health services, among others.

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 From the Desk of President,
Confederation of Nepal Industries

The past few years have witnessed a recognized

reorientation in outlook of India-Nepal relations. In
view of the importance of the relationship for
Mr. Hari Bhakta sustainable economic development, Confederation
Sharma of Nepalese Industries (CNI) have advocated for
greater cooperation in the field of trade and
investment. The untapped opportunities that have
been created between India and Nepal are
profound and inordinate.

With continuous talks and meets, Nepal has

evinced signs of forging a long term partnership
that will help in promoting sustainable
development, security and a better rapport
between the people and industries of India and
Nepal.

Going ahead, we are hopeful that India Nepal

Center (INC) will act as a catalyst of relation
between two closest friendly nations and with
priceless contribution to industry stakeholders of
both Nepal and India.

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 From the Desk of President,
Nepal Chamber of Commerce

India – Nepal bilateral relations have developed

into a global strategic partnership, based on
shared democratic values and increasing
convergence of interests on bilateral, regional and
Dr. Rajesh Kazi global issues.
Shrestha
The business prospects have underwent a
transition in the past few years. The prospects of
growth have developed gradually. There is a new
economic growth story emerging from both the
regions as they possess all the pre-requisites to
become a major growth pole in the South Asia
region. The regions are reiterating the common
desire to expand economic cooperation and trade
and investment linkages between them.

INC's role will be very crucial in advising

prospective traders and investors in India and
Nepal to meet procedural and regulatory
requirements. Also, it will foster economic
relations between Nepal and India and lead to
socio ‐ economic development of both the
nations.

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 From the Desk of President,
Management Association of Nepal

India – Nepal relations enjoy excellent bilateral ties.

The relations have strengthened and expanded
over the years. The partnership with India in the
Mr. Sushil Bhatta areas of trade and transit is a matter of utmost
importance to Nepal.

Both the countries have been deeply engaged in

the regional and sub-regional frameworks for
enhancing cooperation for greater economic
integration by harnessing collectively the potentials
and complementarities available in the region.

The initiative undertaken by PHD Chamber to

launch a dedicated desk focusing on trade and
investments between Nepal and India is a
remarkable accomplishment. INC will boost trade
and investments to new heights by exposing
endless possibilities for collaboration in diverse
sectors in both the nations. Going forward, the
business relations are expected to get
strengthened and streamlined in the coming years.

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 From the Desk of Convenor,
PHD India Nepal Centre (INC)

The India Nepal Centre (INC) has been

established by the PHD Chamber at a time when
the economic relationship between India and
Ambassador K V Nepal is being energized in a significant way.
Rajan Nepal is now a Federation with a new
Constitution and a clearly articulated vision of its
leadership to grow at 8% p.a. and ensure that
the fruits of development reach the common
man.

A defining paradigm of India-Nepal relations as

articulated by the two Prime Ministers is
accelerated economic development. The PHD
and INC will focus on opportunities to expand
and diversify bilateral trade and investment
relations with a view to achieving speedy positive
outcomes in the best mutual interests of the two
countries.

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 From the Desk of Secretary General
PHD Chamber

The relationship between India and Nepal has

become stronger in the past few years. Both the
nations have close economic, cultural and
civilization ties and a wide-ranging and expanding
Mr. Saurabh Sanyal partnership across diverse sectors. Identification
of possible areas of collaborations and forging
high socio-economic growth in the coming times
is the key.

The recently signed agreements on partnership in

agriculture, connectivity through inland
waterways and expanding linkages to connect
Indian railway lines to Kathmandu will bolster the
trade prospects, which can be further expanded
to other SAARC economies.

PHD Chamber is working diligently to strengthen

the existing ties between India and Nepal through
continuous dialogue and discussions both at
micro and macro level.

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 Table of Contents
Sr. No. Topic Page No.

Executive Summary 15
1. Introduction 17
2. Launch of PHD – India Nepal Business 18
Centre
3. Dynamics and Direction of Trade 19
4. Investment Environment: Promising Areas 27
5. Ease of Doing Business 28
6. Socio-Economic Development 29
7. Focus areas for development in Nepal 29
8. Conclusions 33
9. Suggestions 33

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 Executive Summary
There are emphatic indications now that the India-Nepal relationship is
entering a new and promising phase, thanks to the clear vision articulated by
the two Prime Ministers to each other’s countries in recent weeks.
The importance being laid by both leaders is very much on speedy, sustainable
development as the key driver of bilateral ties. Both leaders have expressed
their determination not to allow the inevitable differences that must crop up
between such close neighbours from time to time to pollute the environment
of cooperation. India-Nepal economic ties need to achieve their full potential;
this is as much in their interests as in the interests of a stable and prosperous
region.
Nepal need not consider itself to be “land-locked”. Its great advantage is that it
is “India-linked”. The fact that the Indian Prime Minister has declared Nepal to
the most important country in India’s neighbourhood, the priority being
attached to supporting Nepal’s speedy development, and the Nepal Prime
Minister’s emphasis on deepening economic ties with a sense of urgency,
opens the doors for the private sector in the two countries to cooperate with a
much greater sense of direction and vision for the future. Nepal is now a
federal democratic Republic, and there are high expectations as well as urgent
requirements for speedy development.
A distinct advantage is the prospect of political stability in Nepal and a mutual
desire to build on cultural affinities to expand areas of development, for
example through boosting religious tourism.
The pillars which will underpin expanding cooperation in the months and years
to come have been mutually agreed: Hydropower and Water Resources, a
quantum improvement in connectivity through road, rail and inland
waterways, Technology, Tourism, Agriculture and high value agricultural
products, ICT, SMEs.
The PHD Chamber of Commerce and Industry, one of India’s oldest Chambers,
strongly believes that against this positive backdrop, the time is ripe for the
private sector in both countries to upgrade and restructure their partnerships,
apply innovative approaches, and focus on speedy identification and
implementation of projects in Nepal’s priority sectors in close consultation
with the governments.
The Centre hopes to be able to assist business leaders in both countries in
expanding and diversifying cooperation so that positive outcomes are speeded
up wherever possible.

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 The PHD India Nepal Centre (INC) will work closely with counterpart bodies in
Nepal and the two governments and focus on specific opportunities where it
enjoys strengths, for example:
• Developing tourism on a significant scale, including in non-traditional
areas
• Fast tracking progress on hydropower projects available for private
sector participation
• Strengthening SME cooperation through introduction of new
technologies, partners, markets
• Addressing opportunities for export from Nepal to adjoining states in
India (a market of 400 million) through investments and joint ventures
• Exploring pilot projects for developing Nepal as a major base for organic
farm products
• Dovetailing Nepal’s plans for employment generation with Skill India
• Encouraging members to set up manufacturing base in Nepal for export
to developed country markets to take advantage of concessions
available to it as LDC
• Value addition to traditional exports to developed markets, eg by linking
up crafts production with designers with access to department stores
• Developing sub-regional cooperation projects between Nepal and states
like Uttar Pradesh, Bihar and Bengal where PHD has traditional
strengths
• Encouraging investment in agriculture with “farm-to-fork” projects (PHD
has been engaged in similar MEA-supported exercises with African
countries)
• Introducing tested new technologies in connectivity projects (roads,
tunnels, bridges) to significantly improve cost-effectiveness, speed of
execution, maintenance challenges and longevity of projects)
• Developing world class training modules with a view to rapid technical
capacity- building in Nepal
With every indication that Nepal and India will adhere on a long term basis to
the road map articulated by their two Prime Ministers in recent weeks, there is
every possibility of Nepal becoming the fastest growing economy in South Asia
within a few years.INC, and the PHDCCI, are determined to play their part in
this exciting journey.

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 India – Nepal Economic Ties:
New Horizons

1. India – Nepal growing bilateral economic relations

India and Nepal share a unique relationship of friendship and cooperation
characterized by open borders and deep-rooted people-to-people contacts and
culture. Under unique Treaty arrangements, national treatment is available for
both Indian and Nepalese businesses; and there is reciprocal treatment of
Indian and Nepali citizens in the two countries, in residence, property, business
and movement of human capital; among others1.
The trade ties were strengthened through streamlining of customs and duties
regulations between the two nations, which was an important factor for
Nepal’s trade as it is a landlocked country. During 1970 – 80, multiple Trade
and Transit Treaties were signed between India and Nepal as trade ties
strengthened.
Of late, India remains the largest foreign investor in Nepal, wherein it provides
aid and is jointly constructing hydel power projects with Nepal, with an
extension of a USD 1 billion credit line.
India and Nepal have been consistently holding various dialogues to identify
areas of mutually beneficial cooperation and tactfully resolve spheres of
conflicts hindering the growing relations between the two nations. More
importantly, India and Nepal need to enhance their cooperation in the areas of
connectivity, trade, agriculture, and border security to holistically develop and
expand the bilateral relations.
The trade scenario between India and Nepal has expanded ten-fold since 2001.
The trade increased from USD 0.55 billion to USD 5.93 billion in 2017.
Furthermore, India’s exports to Nepal grew from USD 0.2 billion in 2001 to USD
5.93 billion in 2017 whereas India’s imports from Nepal have remained
constant at USD 0.4 billion between 2001 and 2017.

2. Launch of PHD India – Nepal Business Centre

PHD Chamber organized an interactive session with the High powered
Delegation from Nepal Chamber of Commerce and Management Association of
Nepal (MAN) on 7thApril, 2018. During the interactive session, PHD Chamber
launched the India Nepal Business Centre with the objective of promoting two
1
History of India – Nepal Relations; South Asia Program at Hudson Institute

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 way bilateral economic and business relations for the welfare of both the
nations. The centre would facilitate the investors from India to invest in Nepal
and investors in Nepal to invest in India in order to explore the trade and
investment opportunities and to participate in the economic development of
both the nations.
2.1 Key objectives of India Nepal Centre
• INC will regularly monitor trade and investment opportunities in various
sectors of both India and Nepal through regular research and networking
with Government bodies, Entrepreneurs, Industry associations, Investors,
business delegations, etc.
• INC will advise prospective traders and investors in India and Nepal
processes, policies and procedures for filing applications and will help
them meet other procedural and regulatory requirements in both the
countries. For this purpose, information on specific trade and investment
guidelines specific to India and Nepal will be provided by INBF.
• INC will provide information at a broad level to investors in India and Nepal
about possible potential joint venture partners in both the nations.
• In case of requests made by individual investors to undertake specific
research assignments, financial analysis or due diligence of any specific
joint venture partner or Mergers & Acquisitions (M&A) targets in India and
Nepal, INC will provide adequate resources to carry out such requests.
• In a nutshell, INC will increase understanding amongst the investors from
India and Nepal on the promising investment areas and requirements and
regulations for making investments in both the countries. It will facilitate in
dealing with the Government in application procedures for Indian and
Nepalese investors. This will reduce lead time in investment processes and
procedural transactions.
• INC will be proactive in organizing exchange of business delegation,
conferences, seminar, round tables, B2B meetings for the promotion of
trade and industry not only in India and Nepal but also for the SAARC
region.

In the India Nepal Business Centre, key sectors which would be focused include
agriculture, agro and food processing, tourism, hydropower, infrastructure
development, social infrastructure including health and education which will
enhance and develop strong relationships and linkages between India and
Nepal order to accelerate the growth momentum of both the nations.

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 3. Dynamics and Direction of Trade
The trade between India and Nepal has expanded from USD 0.55 billion in
2001 to USD 5.93 billion in 2017. India’s share in Nepal’s total trade grew from
USD 30% in 1995 to around 60% in 2017. India’s exports to Nepal grew from
USD 0.2 billion in 2001 to USD 5.93 billion in 2017 whereas India’s imports
from Nepal have been hovering around in the range of USD 0.4 – 0.6 billion
during 2001-17.
Chart 1: India Nepal Trade at a Glance

5.93
4.91
4.75
5.5

3.68
3.55
USD Billion

4.5

3.07

2.89
4.2

2.41
2.33

3.2 3.2
1.74
1.71

2.6 2.6
1.24
1.22
1.09
0.90

1.7 1.9
0.55

0.53

1.2 1.3 0.5 0.5 0.6 0.5 0.4

0.9 0.6 0.3 0.4 0.4
0.4 0.3 0.7 0.8
0.4 0.4
0.6
0.3 0.3 0.3 0.5
0.2 0.3

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total Trade India exports to Nepal India imports from Nepal

Source: PHD Research Bureau; Trademap Database

Based on the level of processing, India’s majority of the exports to Nepal are of
consumer goods, viz. 41%; followed by Intermediate goods (31%); capital
goods (20%); and raw materials (8%).
Chart 2: India’s exports to Nepal

13.1% 10.2% 8.5% 14.8% 14.9% 18.3% 24.7% 19.9%

48.8% 54.7% 55.4% 47.3% 48.5% 43.8% 40.5%

39.3%

29.6% 26.9% 27.4% 28.1% 28.1% 28.2% 27.8% 31.2%

8.4% 8.2% 8.6% 9.8% 8.5% 9.7% 8.2% 8.4%

2010 2011 2012 2013 2014 2015 2016 2017

Raw Material Intermediate goods Consumer goods Capital goods

Source: PHD Research Bureau; WITS Database

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 Conversely, majority of India’s imports from Nepal are in the form of consumer
goods, viz. around 58%; followed by intermediate goods (37%); raw materials
(4%); and capital goods (1%) as indicated in Chart 3 below.

Chart 3: India’s imports from Nepal

0.9% 0.7% 0.5% 0.9% 0.4% 0.5% 0.5% 1.0%

42.6% 43.4%
54.7% 56.1% 54.2% 59.6% 58.1%
66.9%

50.4% 50.7%
38.8% 35.7% 37.7%
33.8% 36.5%
29.3%

6.1% 5.2% 6.0% 7.3% 7.7% 6.2% 3.2% 4.5%

2010 2011 2012 2013 2014 2015 2016 2017

Raw Material Intermediate goods Consumer goods Capital goods

Source: PHD Research Bureau; WITS Database

3.1 Top traded products between India and Nepal

Table 1: India’s top ten exports to Nepal (2017)
HS Description India's Share in total
Code exports to exports to
Nepal Nepal
USD million (%)
'27 Mineral fuels, mineral oils and products of their 1189.96 21.57%
distillation; bituminous substances; mineral ...
'72 Iron and steel 763.17 13.83%
'87 Vehicles other than railway or tramway rolling 646.36 11.71%
stock, and parts and accessories thereof
'84 Machinery, mechanical appliances, nuclear 509.00 9.22%
reactors, boilers; parts thereof
'10 Cereals 333.56 6.05%
'30 Pharmaceutical products 190.83 3.46%
'39 Plastics and articles thereof 163.84 2.97%
'25 Salt; sulphur; earths and stone; plastering 134.27 2.43%
materials, lime and cement
'85 Electrical machinery and equipment and parts 125.16 2.27%
thereof; sound recorders and reproducers,
television ...

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 '23 Residues and waste from the food industries; 105.49 1.91%
prepared animal fodder
Total exports to Nepal 5517.77 100.00%
Source: PHD Research Bureau; Trademap Database

India’s major exports to Nepal include Mineral fuels (21.5%); followed by Iron
and Steel (13.8%); Vehicles (11.7%); machinery (9.2%) and Cereals (6%) among
others, of India’s total exports to Nepal. Nepal is under-utilizing its potential in
export of the products on which it has comparative advantage because of the
inability to scale up production. This provides India various opportunities to
enhance its presence in the Nepal’s economy by greater value additions, which
can be further strengthened as there exits huge potential for intra-industry
trade of processed agriculture, light manufactured and heavy manufactured
goods.
Table 2: India’s top ten imports from Nepal (2017)
HS Description India’s Share in total
Code imports from imports from
Nepal Nepal
USD million (%)
'22 Beverages, spirits and vinegar 80.01 19.38%
'09 Coffee, tea, maté and spices 59.23 14.35%
'39 Plastics and articles thereof 41.94 10.16%
'72 Iron and steel 31.55 7.64%
'55 Man-made staple fibres 26.25 6.36%
'23 Residues and waste from the food industries; 23.02 5.58%
prepared animal fodder
'53 Other vegetable textile fibres; paper yarn and 19.44 4.71%
woven fabrics of paper yarn
'63 Other made-up textile articles; sets; worn clothing 16.44 3.98%
and worn textile articles; rags
'38 Miscellaneous chemical products 16.22 3.93%
'64 Footwear, gaiters and the like; parts of such articles 13.25 3.21%
Total imports from Nepal 412.75 100.00%
Source: PHD Research Bureau; Trademap Database

India’s top imports from Nepal include Beverages (19%); followed by Coffee
(14.3%); plastics and articles thereof (10%) and Iron and Steel (7.6%) among
others, of the total imports from Nepal. Looking at the share of Nepal’s export
to India in total export of each product, it appears that Nepal is close to
exhausting its existing supply capacity. This gives immense opportunities for
India to strengthen its position in Nepal.

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 3.2 Trade Cost between India and Nepal
India’s trade cost with Nepal has increased from the level of 77% in 2010 to
98% in 2015, which has made products from countries like China and ASEAN
nations more competitive compared to India. Although the trade cost for
manufacturing products have declined over the years, trade cost for
agricultural products have risen over the years. To strengthen the trade
prospects, India and Nepal needs to address the rising trade cost at the
earliest.
Table 3: India Trade Cost with Nepal (%)
2001 2005 2010 2015
Agricultural products 172.03 93.06 116.74 150.46
Manufacturing products 76.52 98.14 147.56 78.35
Total Trade 100.23 140.02 77.66 98.34
Source: World Bank Trade Cost Database

3.3 Tariff Structure between India and Nepal

As per the data on India and Nepal’s tariff compiled from World Integrated
Trade Solution (WITS) database, for majority of the products imported from
Nepal tariff rates are fixed at zero duty. However, for beverages, spirits and
vinegar simple average tariff rate stood at 50%; and for tobacco and products
thereof the rate stood at 30%.
Table 4: Simple Average Tariff imposed by India (2016)
Chapter Product description Simple average tariff
imposed by India (%)
Nepal World
01 Live animals - 25.71
02 Meat and edible meat offal - 22.22
03 Fish and crustaceans, molluscs and other aquatic items - 17.02
04 Dairy produce; birds' eggs; natural honey; edible 0.00 36.72
05 Products of animal origin, not elsewhere specified 0.00 18.69
06 Live trees and other plants; bulbs, roots and the - 28.17
07 Edible vegetables and certain roots and tubers 0.00 23.15
08 Edible fruit and nuts; peel of citrus fruit 0.00 28.69
09 Coffee, tea, maté and spices 0.00 51.52
10 Cereals 0.00 37.45
11 Products of the milling industry; malt; starches - 31.66
12 Oil seeds and oleaginous fruits; miscellaneous 0.00 14.87
13 Lac; gums, resins and other vegetable saps 0.00 22.49
14 Vegetable plaiting materials; vegetable products n 0.00 13.80
15 Animal or vegetable fats and oils and products thereof 0.00 18.21

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 16 Preparations of meat, of fish or of crustaceans - 27.97
17 Sugars and sugar confectionery 0.00 34.09
18 Cocoa and cocoa preparations - 24.11
19 Preparations of cereals, flour, starch or milk 0.00 22.30
20 Preparations of vegetables, fruit, nuts or other products 0.00 24.74
21 Miscellaneous edible preparations 0.00 49.25
22 Beverages, spirits and vinegar 50.00 103.19
23 Residues and waste from the food industries; preparations 0.00 17.11
24 Tobacco and manufactured tobacco substitutes 30.00 33.02
25 Salt; sulphur; earths and stone; plastering materials 0.00 4.82
26 Ores, slag and ash 0.00 2.59
27 Mineral fuels, mineral oils and products of their 0.00 4.37
28 Inorganic chemicals; organic or inorganic compound - 6.29
29 Organic chemicals - 6.29
30 Pharmaceutical products 0.00 8.57
31 Fertilizers - 5.44
32 Tanning or dyeing extracts; tannins and their derivatives 0.00 7.23
33 Essential oils and resinoids; perfumery, cosmetic 0.00 10.35
34 Soap, organic surface-active agents, washing preparations 0.00 7.88
35 Albuminoidal substances; modified starches; glues; 0.00 12.70
36 Explosives; pyrotechnic products; matches - 9.57
37 Photographic or cinematographic goods - 8.08
38 Miscellaneous chemical products 0.00 7.15
39 Plastics and articles thereof 0.00 7.86
40 Rubber and articles thereof 0.00 8.60
41 Raw hides and skins (other than furskins) 0.00 6.02
42 Articles of leather; saddlery and harness; travel 0.00 8.28
43 Furskins and artificial fur; manufactures thereof - 3.72
44 Wood and articles of wood; wood charcoal 0.00 6.97
45 Cork and articles of cork - 9.24
46 Manufactures of straw, of esparto - 6.59
47 Pulp of wood or of other fibrous cellulosic materials 0.00 2.46
48 Paper and paperboard; articles of paper pulp 0.00 8.32
49 Printed books, newspapers, pictures and other products 0.00 7.28
50 Silk - 8.34
51 Wool, fine or coarse animal hair; horsehair yarn 0.00 10.96
52 Cotton - 6.93
53 Other vegetable textile fibres; paper yarn and woven - 6.82
54 Man-made filaments; strip and the like of man-made 0.00 7.36
55 Man-made staple fibres 0.00 7.42
56 Wadding, felt and nonwovens; special yarns; twine 0.00 7.54
57 Carpets and other textile floor coverings 0.00 7.83
58 Special woven fabrics; tufted textile fabrics; lac - 7.07
59 Impregnated, coated, covered or laminated textile - 8.31

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 60 Knitted or crocheted fabrics - 7.48
61 Articles of apparel and clothing accessories, knit 0.00 6.22
62 Articles of apparel and clothing accessories, not 0.00 5.27
63 Other made-up textile articles; sets; worn clothing 0.00 7.87
64 Footwear, gaiters and the like; parts of such articles 0.00 8.24
65 Headgear and parts thereof 0.00 7.33
66 Umbrellas, sun umbrellas, walking sticks - 7.71
67 Prepared feathers and down and articles made of feather - 7.71
68 Articles of stone, plaster, cement, asbestos, mica 0.00 8.07
69 Ceramic products 0.00 7.13
70 Glass and glassware 0.00 8.46
71 Natural or cultured pearls, precious or semi-precious stone - 8.62
72 Iron and steel 0.00 7.06
73 Articles of iron or steel 0.00 8.27
74 Copper and articles thereof 0.00 5.42
75 Nickel and articles thereof - 2.22
76 Aluminium and articles thereof 0.00 6.70
78 Lead and articles thereof 0.00 4.15
79 Zinc and articles thereof 0.00 4.53
80 Tin and articles thereof - 4.39
81 Other base metals; cermets; articles thereof - 5.94
82 Tools, implements, cutlery, spoons and forks 0.00 8.26
83 Miscellaneous articles of base metal 0.00 8.09
84 Nuclear reactors, boilers, machinery and mechanical 0.00 6.15
85 Electrical machinery and equipment and parts thereof 0.00 6.42
86 Railway or tramway locomotives, rolling stock - 8.73
87 Vehicles other than railway or tramway 0.00 20.22
88 Aircraft, spacecraft, and parts thereof 0.00 5.62
89 Ships, boats and floating structures - 7.11
90 Optical, photographic, cinematographic, measuring, etc 0.00 6.20
91 Clocks and watches and parts thereof - 7.64
92 Musical instruments; parts and accessories of such - 6.89
93 Arms and ammunition; parts and accessories thereof - 9.67
94 Furniture; bedding, mattresses, mattress supports, etc 0.00 7.94
95 Toys, games and sports requisites; parts and accessories - 8.39
96 Miscellaneous manufactured articles 0.00 7.84
97 Works of art, collectors' pieces and antiques - 8.07
Source: PHD Research Bureau; WITS Database

On the other hand, the average tariff rate on various Indian products such as
preparations of vegetables, fruits, nuts and other products; ores, slag and ash;
lead; and vehicles are higher than the averages tariffs imposed by Nepal on all
the countries.

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 On preparations of vegetables, fruits, nuts and other products (HS 20), simple
average tariff on India stood at 20.6% compared to 20% on world average
during 2016; for vehicles simple average tariff on India stood at 19.2%
compared to 18.6% on world average; among others as illustrated in Table 4
below.
Table 4: Simple Average Tariff imposed by Nepal (2016)
Chapter Product description Simple average tariff
imposed by Nepal (%)
India World
01 Live animals 6.25 7.75
02 Meat and edible meat offal 7.00 9.63
03 Fish and crustaceans, molluscs and other aquatic 8.00 9.56
04 Dairy produce; birds' eggs; natural honey; edible 15.65 16.95
05 Products of animal origin, not elsewhere specified 5.67 5.82
06 Live trees and other plants; bulbs, roots 6.82 8.60
07 Edible vegetables and certain roots and tubers 8.70 9.47
08 Edible fruit and nuts; peel of citrus fruit or melons 8.51 9.39
09 Coffee, tea, maté and spices 12.05 16.99
10 Cereals 7.20 8.70
11 Products of the milling industry; malt; starches; etc 8.33 8.62
12 Oil seeds and oleaginous fruits; miscellaneous 7.31 9.01
13 Lac; gums, resins and other vegetable saps 6.00 8.48
14 Vegetable plaiting materials; vegetable products 6.00 8.00
15 Animal or vegetable fats and oils and products thereof 7.65 9.25
16 Preparations of meat, of fish or of crustaceans, etc - 14.83
17 Sugars and sugar confectionery 12.80 19.70
18 Cocoa and cocoa preparations 21.00 26.84
19 Preparations of cereals, flour, starch or milk; etc 18.56 22.27
20 Preparations of vegetables, fruit, nuts or other products 20.53 20.01
21 Miscellaneous edible preparations 12.23 17.60
22 Beverages, spirits and vinegar 25.45 27.03
23 Residues and waste from the food industries; preparations 5.83 6.31
24 Tobacco and manufactured tobacco substitutes 26.67 27.33
25 Salt; sulphur; earths and stone; plastering materials 9.02 9.33
26 Ores, slag and ash 5.82 5.75
27 Mineral fuels, mineral oils and products thereof 8.24 12.96
28 Inorganic chemicals; organic or inorganic compound 6.17 8.16
29 Organic chemicals 5.90 7.30
30 Pharmaceutical products 7.82 9.20
31 Fertilisers 0.00 0.00
32 Tanning or dyeing extracts; tannins and their derivatives 10.76 13.96
33 Essential oils and resinoids; perfumery, cosmetics 10.21 13.57
34 Soap, organic surface-active agents, washing preparations 14.10 17.07
35 Albuminoidal substances; modified starches; glues; 5.92 9.17
36 Explosives; pyrotechnic products; matches; etc 12.92 16.14
37 Photographic or cinematographic goods 5.95 6.37
38 Miscellaneous chemical products 6.35 8.55

PHD Research Bureau 25

 39 Plastics and articles thereof 15.26 20.50
40 Rubber and articles thereof 7.70 11.29
41 Raw hides and skins (other than furskins) and leather 5.00 5.00
42 Articles of leather; saddlery and harness; travel 15.40 18.20
43 Furskins and artificial fur; manufactures thereof 6.53 9.86
44 Wood and articles of wood; wood charcoal 6.57 10.28
45 Cork and articles of cork 6.13 7.42
46 Manufactures of straw, of esparto 6.47 7.42
47 Pulp of wood or of other fibrous cellulosic materials 5.25 5.75
48 Paper and paperboard; articles of paper pulp 12.17 14.98
49 Printed books, newspapers, pictures and other products 7.06 9.53
50 Silk 6.35 9.07
51 Wool, fine or coarse animal hair; horsehair yarn 5.19 6.44
52 Cotton 5.46 8.95
53 Other vegetable textile fibres; paper yarn and woven 7.29 9.51
54 Man-made filaments; strip and the like of man-made 8.75 10.52
55 Man-made staple fibres 9.31 10.71
56 Wadding, felt and nonwovens; special yarns; twine 8.66 12.99
57 Carpets and other textile floor coverings 28.68 29.11
58 Special woven fabrics; tufted textile fabrics; lac 7.22 12.47
59 Impregnated, coated, covered or laminated textile 9.83 13.29
60 Knitted or crocheted fabrics 15.00 15.00
61 Articles of apparel and clothing accessories, knitted 19.81 19.90
62 Articles of apparel and clothing accessories, not-knitted 19.77 19.84
63 Other made-up textile articles; sets; worn clothing 13.75 15.50
64 Footwear, gaiters and the like; parts of such articles 18.54 19.55
65 Headgear and parts thereof 8.22 13.84
66 Umbrellas, sun umbrellas, walking sticks 5.71 9.51
67 Prepared feathers and down and articles made of feathers 7.25 16.14
68 Articles of stone, plaster, cement, asbestos, mica 10.29 13.83
69 Ceramic products 10.84 15.57
70 Glass and glassware 14.56 18.18
71 Natural or cultured pearls, precious or semi-precious stone 5.36 9.03
72 Iron and steel 9.03 10.30
73 Articles of iron or steel 11.89 14.83
74 Copper and articles thereof 5.88 8.80
75 Nickel and articles thereof 6.63 8.50
76 Aluminium and articles thereof 6.42 10.81
78 Lead and articles thereof 6.29 6.00
79 Zinc and articles thereof 5.25 5.56
80 Tin and articles thereof 8.85 12.63
81 Other base metals; cermets; articles thereof 6.67 9.74
82 Tools, implements, cutlery, spoons and forks 5.45 6.52
83 Miscellaneous articles of base metal 7.80 9.71
84 Nuclear reactors, boilers, machinery and mechanicals 5.40 7.43
85 Electrical machinery and equipment and parts thereof 7.23 9.32
86 Railway or tramway locomotives, rolling stock and 7.25 12.96
87 Vehicles other than railway or tramway 19.15 18.60
88 Aircraft, spacecraft, and parts thereof 6.00 9.81
89 Ships, boats and floating structures 6.94 11.24

PHD Research Bureau 26

 90 Optical, photographic, cinematographic, measuring, etc 4.51 5.12
91 Clocks and watches and parts thereof 6.37 11.20
92 Musical instruments; parts and accessories of such products 5.00 5.00
93 Arms and ammunition; parts and accessories thereof 11.25 50.54
94 Furniture; bedding, mattresses, mattress supports, etc 9.19 20.67
95 Toys, games and sports requisites; parts and accessories 5.09 5.36
96 Miscellaneous manufactured articles 7.31 10.56
97 Works of art, collectors' pieces and antiques 9.00 9.33
Source: PHD Research Bureau; WITS Database

4. Investment Environment: Promising Areas

In terms of approved amount of FDI, India is Nepal’s largest source of FDI. India
accounts for around 44% of Nepal’s total foreign direct investment. There are
about 150 Indian ventures operating in Nepal. They are engaged in
manufacturing, services such as banking, insurance, dry port, education and
telecom; power sector and tourism industries. Some of the major joint
ventures of India in Nepal include Surya Nepal – a joint venture with ITC India,
Dabur Nepal, Nepal Lever and United Telecom Nepal, Everest Bank, SBI Bank,
LIC Nepal, Asian Paints, GMR India, IL&FS and Manipal.
Nepal is a prospective destination for Indian Investments. The low labour costs
and liberal trade and economic policy resulting in lower tariffs are responsible
for attracting Indian investment in Nepal. Further, the climatic advantage due
to the terrain ranging from almost the sea level up to the Mount Everest within
the average distance of 200 kms provide wider scope in Nepal for growing all
sorts of agricultural products such as medicinal herbs, fruits and high quality
tea, coffee and saffron in the country. Also, there is huge scope for the
commercial production of hydropower in Nepal.
It becomes imperative that the existing hydropower projects are allowed to
move smoothly. If such projects are completed, they would change the
national economy dramatically as they would have multiplier effect on
different sectors such as on education, health, transport, communication,
industry, trade and service sectors.
Going ahead, Indian investments can play a vital for Nepal’s economic growth,
especially in sectors like infrastructural facilities as hydropower, education and
health, agri-business, tourism and other financial sectors.

PHD Research Bureau 27

 5. Ease of Doing Business
On the Ease of Doing Business front, India witnessed a remarkable jump in
ranking from 130th position in 2017 to 100th in 2018 whereas Nepal witnessed a
decline in its ranking from 99th in 2017 to 105th position in 2018.
Table 5: World Bank’s Ease of Doing Business Ranking 2018 – India and Nepal
Parameters India Nepal
EoDB Rank 100 105
Starting a business 156 109
Dealing with Construction Permits 181 157
Getting electricity 29 133
Registering Property 154 84
Getting Credit 29 90
Protecting Minority Investors 4 62
Paying Taxes 119 146
Trading across borders 146 76
Enforcing contracts 164 153
Resolving insolvency 103 76
Source: Ease of Doing Business Report 2018

On the ease of export front, Indian trucks are allowed free access to any part of
Nepal for a period upto 72 hours without having to pay any extra charge.
Similar initiative can be implemented for Nepalese trucks coming into India
after due and comprehensive security checks. In many cases, Nepalese goods
have to be transhipped to Indian trucks at the border, which adds to the time
and cost of trading across border due to loading and unloading requirements.
These problems need to address through creation of a harmonized transport
segment catering to the logistics of India and Nepal trade.

6. Socio-Economic Development
India has been a major contributor in Nepal’s socio-economic growth. India
provides substantial financial and technical development assistance to Nepal,
focusing on establishment of infrastructure at the grass-root level in the areas
of health, water resources, education, and rural and community development.
More than 537 large, intermediate and small–scale projects at an estimated
cost of USD 76 million have been implemented across Nepal under Indian
financial support since 1951.
Nepal topped the chart of three countries where India spends money on
developmental grants under rebuilding and reconstruction activities in the last

PHD Research Bureau 28

 two years, ahead of both Afghanistan and Sri Lanka. Till January 2018, the
grant in assistance to Nepal for 2017-18 was Rs. 253.17 crore. Apart from grant
assistance, India has also extended four lines of credit to Nepal for USD 100
million, USD 250 million, USD 550 million and USD 750 million for execution of
infrastructure development projects and post-earthquake reconstruction.
In recent years, India has been assisting Nepal in development of border
infrastructure through up gradation of roads in the Terai areas, development
of cross-border rail links at Jogbani–Biratnagar, Jaynagar-Bardibas, Nepalgunj
Road-Nepalgunj, Nautanwa-Bhairhawa, and New Jalpaigudi-Kakarbhitta; and
establishment of Integrated Check Posts at Raxaul-Birgunj, Sunauli-Bhairhawa,
Jogbani-Biratnagar, and Nepalgunj Road-Nepalgunj.

7. Focus areas for development in Nepal

There are certain key areas which the Nepal can focus upon accelerate
economic growth in the country. Fostering economic relations in the following
areas can facilitate in developing the sectors which will lead to all-inclusive
growth in the coming times.

7.1 Agri, Agro and Food Processing

Nepal is an agrarian economy with more than 65% of the population directly
engaged in farming. Agriculture is the mainstay of the economy and
contributes one-third to the GDP of Nepal. The Tarai plains are known as the
breadbasket of Nepal. Some of the major staple crops of the state are barley,
buckwheat, cotton, jute, maize, oilseeds, potato, rice, sugarcane, tobacco and
turmeric.
A number of fruits and vegetable are grown by the farmers in the country such
as apple, banana, cucumber, brinjal, lemon, lichi, lime, leafy vegetables, and
mango, among others. However, the investment in the agriculture sector is low
as compared to neighbouring countries and SAARC region.
Therefore, there is low technological development in the sector. It may be
mentioned that the country holds huge potential in industrialization of
agriculture produce. However, usage of traditional methods of farming
coupled with scarcity of labour and skilled manpower.
To promote the trade of agriculture products, the government has initiated
various schemes such as Agricultural Commodity Export Promotion Program,
High Value Agriculture Project (HVAP) 2010-2017, Nepal Economic Agriculture

PHD Research Bureau 29

 and Trade (NEAT) 2010-2013, and Agriculture Commercialization and Trade
(PACT) 2012-2017, among others.
Table 6: Agriculture at a glance
Indicator Value (in ‘000 hectares)
Agriculture area 4121
Total area equipped for irrigation 1368.9
Area under Permanent Crops 212
Area under organic crops 9.4
Source: PHD Research Bureau, compiled from FAO, Data pertains to 2015

However, the sector faces various constraints and challenges for export
promotion such as supply side constraints, lower investments, inadequate
trade infrastructure and facilitation. The sector has too many smallholder
farmers which lack competiveness and use traditional methods of farming.
Consequently, there is lack of economies of scale and only 44.7% of the
agriculture entities are commercialized while the majority (55.3%) of the
farmers indulges in subsistence farming.
Going ahead, focus on building good export infrastructure along with reduction
in structural and procedural barriers such as visa rule could strengthen the
economic prospects. To promote agro industries and food processing in the
economy, focusing on building basic infrastructure with a good network of
roads connecting north-south corridor for linking hills, with Tarai and valley
floor, provision of better irrigation facilities and availability of 24x7 power
supplies. For commercialization of agriculture, fragmented land parcels and
small holdings could be consolidated.

7.2 Tourism
Nepal has varied topography due to which it is a popular destination for
domestic as well as foreign tourists. According to World Travel and Tourism
Council, the direct contribution of travel and tourism to GDP is 3.6% of the
total GDP in 2016 while the total contribution has been estimated at 7.5% of
GDP during the period. Further, the sector supported more than 9 lakh direct
and indirect jobs in 2016. The industry earns on an average 25% of the total
foreign exchange. The government has set a target of attracting 2 million
tourists by 2020.
According to tourism entrepreneurs, one of the major challenges is the lack of
clear vision and mission on the part of the government. Formulation, in
consultation with the private sector and other players, of a clear and pragmatic
vision backed by a mission for the tourism industry would go a long way.

PHD Research Bureau 30

 While export of travel services has expanded in recent years, much needs to be
done to further expand the sector and be a net exporter of travel services.
Poor infrastructure is the major constraint to expansion and development of
tourism sector in Nepal. The road networks across the country are below
standards while the air connectivity within the country is limited.
Encouraging the entry of international hotel chains and gradual improvement
in the quality of services will help bring high-end tourists to Nepal. Further,
ensuring timely construction of basic infrastructure like roads and airports,
preservation of natural habitat, trekking trails and exploration of new travel
destinations would strengthen the tourism climate. Going ahead, the far-
western belt of the country remains largely unexplored. This can be developed
with basic amenities to make it a tourist destination in the coming times.

7.3 Hydropower
Hydropower has a huge scope in the economy of Nepal as South Asia’s
considerable hydropower potential is concentrated in the Himalayan region.
Nepal’s theoretical hydropower potential has been estimated to be around
84,000 MW, of which 43,000 MW has been identified as economically viable.
Currently, Nepal's total power generation has been estimated at around 900
MW while the country generates around 847 MW from its hydro resources.
Although Nepal suffers from regular energy shortages with a load shedding of
close to 4 to 5 hours, the available hydropower resources could provide a large
surplus if strategically developed with a view to foster regional energy trade. It
is a well known fact that India has a huge demand for clean and affordable
electricity which can be catered by Nepal.

7.4 Infrastructure Development

Infrastructure gaps present a significant challenge for Nepal’s short and longer
term development goals. It has been estimated that even though
approximately 83% of population has access to basic water services, only 16%
of the population has access to higher/medium quality water services. The
infrastructure deficit is alarming and should be addressed for the overall
economic development of the country.
Nepal needs to improve the basic infrastructure such as enhanced
connectivity, availability of uninterrupted power supply, promotion of
agglomeration economies which will allow the private sector and businesses to
unleash their potential. A World Bank estimate of Nepal's 'infrastructure gap'
pegs investment needs at between 8-12% of national income until 2020. Thus,

PHD Research Bureau 31

 huge amount of investments are needed to develop infrastructure for fostering
economic growth in the country.
Going ahead, utilization of latest technology extensively to establish intelligent
transport system for roads and airports to enhance and lead to effective
utilization of assets. To enhance availability of power, the Government of
Nepal can use the India model of renovation and modernization of existing
power plants to deliver more electricity. This will reduce costs (involved in
building new plants) and at the same time generate power supply to cater to
the growing demand. Above all, streamlining the permit approvals as well as
land acquisition, reduce bottlenecks, will facilitate infrastructure development
and facilitate ease of doing business in the country.

7.5 Soft Infrastructure

According to the Annual Household Survey 2015-16, the literacy rate of Nepal
(age 5 years and above) stood at around 65.9%, wherein male and female
literacy rate stood at 74.2% and 58.2%, respectively. There is still big gap in the
literacy between sexes in Nepal. Therefore, focus should be to introduce
reforms in education system with a focus to improve the skill sets of the
people, enhance enrolment ratio in schools, upgrade educational
infrastructure and to fill gender gap in literacy rates.
The healthcare infrastructure in Nepal demands urgent attention. There is a
huge demand supply gap. There are only 0.36 doctors and 1.17 nurses per
1000; as compared to the BRICS medians of 1.8 and 4.9 respectively. There is
an urgent need to formulate better health policies, provide incentives and
address the bottlenecks in infrastructure development to spur private
investments in health sector. Focus should be on allowing foreign private
equity investors in the healthcare sector so as to enable the sector to have
access to state of the art technology, processes and know-how.

8. Conclusions
The strengthening of India – Nepal relations will be game changer for
expanding the prospects of SAARC Free Trade Agreement, going forward. The
recently signed agreements on partnership in agriculture, connectivity through
inland waterways and expanding linkages to connect Indian railway lines to
Kathmandu will bolster the trade prospects, which can be further expanded to
other SAARC economies.
Despite being contiguous nations, connectivity has been the major impediment
for SAARC members. Therefore, the strengthening of India – Nepal existing

PHD Research Bureau 32

 trade routes and creation of new routes would benefit the entire SAARC
region. For instance, the Treaty of Trade between Nepal and India provides
access to the Indian market for Nepalese products at a zero tariff rate, except
for a small negative list, and as long as they meet specific rules of origin.
Similarly, as Least Developed Country (LDC), Nepal is eligible for preferential
treatment under Generalized Systems of Preference (GSP) and, therefore,
enjoys lower tariffs than the Most Favoured Nation (MFN) tariffs. On the back
of robust connectivity, Nepal can boost its exports to India. Further, to tap the
market potential, processing of products, value addition, branding and
marketing are beneficial for both the nations in each other’s market.
Going ahead, trade and other treaties such as control of unauthorized trade,
transit, and rail service need to be periodically renewed. Focus should be on
engaging in consistent Inter Governmental Committee meetings between both
the nations to deliberate on procedural issues and trade restricting policy-
related issues. On the back of further liberalized trade prospects and
strengthened infrastructure, we anticipate the trade between India and Nepal
to grow to USD 12 billion by 2022.

9. Suggestions
India – Nepal hold immense collaborative opportunities in the following
sectors:
9.1 Developing Food processing value chains: Nepal is predominantly an
agrarian economy, which gives India ample opportunities to develop
processed food value chains in collaboration with Nepal. The Food
Processing industry in India is one of the largest industries in the country
mainly on the account of its strong agricultural base. The share of India’s
export of processed food in global trade stood at 2.3%, valuing at USD 30
billion. Given the size and growth prospect of this sector, India – Nepal
collaborative approach can foster the value chains significantly.
9.2 Tourism development: Nepal has new and unexplored opportunities
that make tourism a well-suited sector for collaboration. Tourism and its
associated services comprise a significant portion in Nepal’s GDP, which
provide opportunities for India to develop hotels, travel agencies, tour
operators, trekking and rafting agencies. India’s ever growing hotel
industry can steer the development process of hospitality sector in
Nepal, which is highly fragmented at present. This will improve the
movement of people between India and Nepal and enhance the foreign
exchange earnings of Nepal, going forward. Other prospective and

PHD Research Bureau 33

 collaborative tourism opportunities include adventure tourism and
religious tourism.
9.3 Hydel Power Generation: Despite of a huge hydropower potential,
Nepal is power starved. This is evident from the fact that Nepal is rich in
water resources with the potential to generate 83,000 MW of hydro-
power, but it currently generates 674 MW of hydro-power from the
total installed capacity of 705 MW. This is an opportune moment to push
for electricity trade with a long-term perspective to develop hydel power
generation capacities.
At present, India has surplus power capacity. It can import flexible
hydropower from Nepal to balance its fast growing renewable
generation and also provide a market for Nepal’s electricity. India can
enter into a joint venture with Nepal to develop the infrastructural
capabilities of Nepal due to which hydro potential can be developed
faster.
9.4 Banking and Financial Services: The magnitude and coverage of banking
and financial services in Nepal is relatively small and limited. The
institutions are not developed or modernized to support the financial
needs of various demanding sectors in Nepal. In Nepal, only 38% of
adults have bank accounts. Of that number, only 6.7% use debit cards.
This provides tremendous opportunities for India to enter into
collaboration with Nepal to develop and sustain the banking and
financial services in the country, including establishment of large scale
banks, non-banking finance institutions, insurance companies, among
others.
9.5 Education services: Presently, Nepal’s education sector is downtrodden
due to poor quality of public education and disparity in access to quality
education across the nation. Nepal lacks research centers that are
committed to the creation and dissemination of knowledge, in a range
of disciplines and fields. With numerous opportunities to develop
educational institutions providing training and turning out quality
oriented graduates, India can enter into joint ventures for green field
and brown field investments with Nepal. Further, major Indian
universities can sign exchange programmes and MoUs with Nepalese
Universities to enhance exposure of Nepalese students.
9.6 Health Services: Nepal’s health care sector has the potential to export
services. As the country’s economy grows, the demand for quality health

PHD Research Bureau 34

 services will also grow. This enables India to setup health care related
infrastructure capacities in Nepal. There are also opportunities for public
private partnerships in the development and management of public
health infrastructure, pharmaceutical industry, health care facilities,
ayurvedic medicines and ayurveda holistic treatment centres and health
care educational services for India.

*****

PHD Research Bureau 35

 Study/Project Team

Dr. S P Sharma
Chief Economist

Ms. Megha Kaul Mr. Rohit Singh Ms. Areesha

Associate Economist Research Associate Research Associate

Disclaimer

“India – Nepal Economic Ties: New Horizons” is prepared by PHD Research Bureau to
provide a broad view of India’s foreign trade and investments relations with Nepal. This
study may not be reproduced, wholly or partly in any material form, or modified, without
prior approval from the Chamber.

It may be noted that this book is for guidance and information purposes only. Though due
care has been taken to ensure accuracy of information to the best of the PHD Chamber’s
knowledge and belief, it is strongly recommended that readers should seek specific
professional advice before taking any decisions.

Please note that the PHD Chamber of Commerce and Industry does not take any
responsibility for outcome of decisions taken as a result of relying on the content of this
book. PHD Chamber of Commerce and Industry shall in no way, be liable for any direct or
indirect damages that may arise due to any act or omission on the part of the Reader or
User due to any reliance placed or guidance taken from any portion of this book.

Copyright 2018
ISBN: 978-93-84145-60-6
PHD Chamber of Commerce and Industry

ALL RIGHTS RESERVED.

No part of this book including the cover, shall be reproduced, stored in a retrieval system, or
transmitted by any means, electronic, mechanical, photocopying, recording or otherwise,
without the prior written permission of, and acknowledgement of the publisher (PHD
Chamber of Commerce and Industry)

PHD Research Bureau 36

 PHD Research Bureau
PHD Research Bureau; the research arm of the PHD Chamber of Commerce and Industry
was constituted in 2010 with the objective to review the economic situation and policy
developments at sub-national, national and international levels and comment on them in
order to update the members from time to time, to present suitable memoranda to the
government as and when required, to prepare State Profiles and to conduct thematic
research studies on various socio-economic and business developments.

The Research Bureau has been instrumental in forecasting various lead economic indicators
national and sub-national. Many of its research reports have been widely covered by media
and leading newspapers. Recently, the Research Bureau has undertaken various policy
projects of Government of India including Framework of University-Industry Linkages in
Research assigned by DSIR, Ministry of Science & Technology, Study on SEZ for C&AG of
India, Study on Impact of Project Imports under CTH 9801 for C&AG of India and has
attracted a World Bank Project on free trade zones.

Research Comments on Economic

Newsletters Consultancy
Activities Developments

 Research Studies  Macro Economy  Economic Affairs  Trade & Inv.

Newsletter (EAC) Facilitation
Services (TIFS)
 State Profiles  States Development  Global Economic  Business
Monitor (GEM) Research
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 Impact  Infrastructure  Trade & Inv.
Assessments Facilitation Services
(TIFS) newsletter

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Economic Newsletter
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 Global Economy

PHD Research Bureau 37

 Team, PHD Research Bureau
Dr. SP Sharma
Chief Economist
Email: [email protected]

Department of Economic Department of Financial markets, Department of Industry Affairs

Affairs and Research Taxation and Research and MSMES

Ms. Megha Kaul Ms. Surbhi Sharma Ms. Bhavana Rai

Associate Economist Senior Research Officer Research Officer
Developments in Economic Banking, Finance and Taxation Infrastructure and Industry
Policy affairs

Mr. Rohit Singh

Ms. Areesha Research Associate
Research Associate India’s Foreign Trade &
Macroeconomic Developments Investments, Ease of Doing
in National and International Business
arena
Ms. Neha Gupta
Ms. Abha Chauhan Research Associate
Research Associate FOREX and FEMA
State Developments

Ms. Kriti Khurana

Research Associate
Infrastructure (Social & Rural)

Ms. Sunita Gosain, Secretarial Assistant

Secretarial and Administrative Processes

PHD Research Bureau 38

 Studies undertaken by the PHD Research Bureau
A: Thematic research reports 46. Impact of Demonetization on Economy, Businesses and People
1. Comparative study on power situation in Northern and Central (January 2017)
states of India (September2011) 47. Economy on the eve of Budget 2017-18 (January 2017)
2. Economic Analysis of State (October 2011) 48. Union Budget 2017-18: A budget for all-inclusive development
3. Growth Prospects of the Indian Economy, Vision 2021 (December (January 2017)
2011) 49. Annual Survey of Indian Direct Selling Industry 2015-16 (February
4. Budget 2012-13: Move Towards Consolidation (March 2012) 2017)
5. Emerging Trends in Exchange Rate Volatility (Apr 2012) 50. Worklife Balance and Health Concerns of Women: A Survey
6. The Indian Direct Selling Industry Annual Survey 2010-11 (May (March 2017)
2012) 51. Special Economic Zones: Performance, Problems and
7. Global Economic Challenges: Implications for India (May 2012) Opportunities (April 2017)
8. India Agronomics: An Agriculture Economy Update (August 2012) 52. Feasibility Study (socio-Economic Survey) of Ambala and Rohtak
9. Reforms to Push Growth on High Road (September 2012) Districts in Haryana (March 2017)
10. The Indian Direct Selling Industry Annual Survey 2011-12: Beating 53. Goods and Services (GST): So far (July 2017)
Slowdown (March 2013) 54. Reshaping India-Africa Trade: Dynamics and Export Potentiality of
11. Budget 2013-14: Moving on reforms (March 2013) Indian Products in Africa (July 2017)
12. India- Africa Promise Diverse Opportunities (November 2013) 55. Industry Perspective on Bitcoins (July 2017)
13. India- Africa Promise Diverse Opportunities: Suggestions Report 56. Senior Housing: A sunrise sector in India (August 2017)
(November 2013) 57. Current state of the economy (October 2017)
14. Annual survey of Indian Direct Selling Industry-2012-13 58. Equitable finance to fulfill funding requirements of Indian
(December 2013) Economy (October 2017)
15. Imperatives for Double Digit Growth (December 2013) 59. The Wall of Protectionism: : Rise and Rise of Protectionist Policies
16. Women Safety in Delhi: Issues and Challenges to Employment in the Global Arena, (November 2017)
(March 2014) 60. India-Israel Relations: Building Bridges of Dynamic Trade(October
17. Emerging Contours in the MSME sector of Uttarakhand (April 2017)
2014) 61. Role of Trade Infrastructure for Export Scheme (TIES) in
18. Roadmap for New Government (May 2014) Improving Export Competitiveness (November 2017)
19. Youth Economics (May 2014) 62. India - China Trade Relationship: The Trade Giants of Past,
20. Economy on the Eve of Union Budget 2014-15 (July 2014) Present and Future (January 2018)
21. Budget 2014-15: Promise of Progress (July 2014) 63. Analysis of Trade Pattern between India and ASEAN(January
22. Agronomics 2014: Impact on economic growth and inflation 2018)
(August 2014) 64. Union Budget 2018-19 – (February 2018)
23. 100 Days of new Government (September 2014) 65. Ease of Doing Work for Women: A survey of Delhi NCR (February
24. Make in India: Bolstering Manufacturing Sector (October 2014) 2018)
25. The Indian Direct Selling Industry Annual Survey 2013-14 66. Restraining Wilful Defaults: Need of the hour for Indian Banking
(November 2014) System (March 2018)
26. Participated in a survey to audit SEZs in India with CAG Office of 67. Impact of GST on Business, Industry and Exporters (April 2018)
India (November 2014) 68. India – Sri Lanka Bilateral Relations: Reinforcing trade and
27. Role of MSMEs in Make in India with reference to Ease of Doing investment prospects (May 2018)
Business in Ghaziabad (Nov 2014) B: State profiles
28. Exploring Prospects for Make in India and Made in India: A Study 69. Rajasthan: The State Profile (April 2011)
(January 2015) 70. Uttarakhand: The State Profile (June 2011)
29. SEZs in India: Criss-Cross Concerns (February 2015) 71. Punjab: The State Profile (November 2011)
30. Socio-Economic Impact of Check Dams in Sikar District of 72. J&K: The State Profile (December 2011)
Rajasthan (February 2015) 73. Uttar Pradesh: The State Profile (December 2011)
31. India - USA Economic Relations (February 2015) 74. Bihar: The State Profile (June 2012)
32. Economy on the Eve of Union Budget 2015-16 (February 2015) 75. Himachal Pradesh: The State Profile (June 2012)
33. Budget Analysis (2015-16) 76. Madhya Pradesh: The State Profile (August 2012)
34. Druzhba-Dosti: India's Trade Opportunities with Russia (April 77. Resurgent Bihar (April 2013)
2015) 78. Life ahead for Uttarakhand (August 2013)
35. Impact of Labour Reforms on Industry in Rajasthan: A survey 79. Punjab: The State Profile (February 2014)
study (July 2015) 80. Haryana: Bolstering Industrialization (May 2015)
36. Progress of Make in India (September 2015) 81. Progressive Uttar Pradesh: Building Uttar Pradesh of Tomorrow
37. Grown Diamonds, A Sunrise Industry in India: Prospects for (August 2015),
Economic Growth (November 2015) 82. Suggestions for Progressive Uttar Pradesh (August 2015)
38. Annual survey of Indian Direct Selling Industry 2014-15 83. State profile of Telangana- The dynamic state of India (April 2016)
(December 2015) 84. Smart Infrastructure Summit 2016- Transforming Uttar Pradesh
39. India’s Foreign Trade Policy Environment Past, Present and (August 2016)
Future (December 2015) 85. Smart Infrastructure Summit 2016-Transforming Uttar Pradesh :
40. Revisiting the emerging economic powers as drivers in promoting Suggestions for the State Government (August 2016)
global economic growth(February 2016) 86. Rising Jharkhand: An Emerging Investment Hub (February 2017)
41. Bolstering MSMEs for Make in India with special focus on CSR 87. Punjab: Roadmap for the New Government Suggestions for the
(March 2016) Industrial and Socio-Economic Development – Focus MSMEs ease
42. BREXIT impact on Indian Economy (July 2016) of doing business (May 2017)
43. India’s Exports Outlook (August 2016) 88. Prospering Himachal Pradesh: A Mountain of Opportunities
44. Ease of Doing Business : Suggestive Measures for States (October (August 2017)
2016) 89. Kashmir: The way forward (February 2018)
45. Transforming India through Make in India, Skill India and Digital 90. Analysis of State Budgets for 2018-19:Select Sates (March 2018)
India (November 2016)

PHD Research Bureau 39

PHD Research Bureau 40