Indo-Nepal Trade Treaties: Assessing the Impact

India's trade and economic co-operation with Nepal are governed by several treaties which have been signed, renewed and modified over the past many years. However, past treaties have been limited to tariff and other duty concessions. Such benefits have been transitory in nature and have not significantly contributed to either growth of the Nepal's economy or to sustainable trade between both the countries. This study conducted to analyze the impact of Indo-Nepal trade treaties on Nepalese economy. As we know that India is the biggest trade partner of Nepal since both the nations signed peace and friendship treaty in 1950. Indo-Nepal Trade Treaty of 1996 played an important role in increasing trade volume between two countries. It was a landmark trade treaty that contributed in Nepalese economy in general, and explores trade and industrial development, in particular. This treaty allowed for duty free access of almost all domestic primary products into each other's markets. However, past treaties have been limited to tariff and other duty concessions. To analyze the impact of the trade treaties, simple regression model has been applied based on secondary data.