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Connectivity and cooperation
Context:
India and Nepal must update transport agreements. Success hinges on Nepal's efforts to boost trade capabilities and adjust industry capacity.
Rejuvenating Regional Cooperation
- SAARC's Ineffectiveness: SAARC's dysfunctionality hinders regional cooperation in South Asia, necessitating a fresh approach to revive collaboration.
- Empowering Trade Corridors: Prioritizing Highly Facilitated Trade Corridors (HFTC) in BBIN and BIMSTEC regions can enhance regional integration and economic growth.
- CSEP's Policy Brief: The policy brief emphasizes the potential of HFTC in addressing border transport and trade challenges.
Enhancing India-Nepal Relations
- Empathy and Trust: India-Nepal relations should be driven by empathy, trust, and complementarity, with a focus on efficient trade facilitation.
- Trade Infrastructure Improvement: Structural changes, including addressing trade-related constraints, are vital for efficient trade and transport facilitation between India and Nepal.
- Nepal's Role in Modernization: Nepal's willingness to enhance trade-related capacity and recalibrate industrial capabilities is crucial for modernizing transport and transit agreements.
Overcoming Economic Challenges in Nepal
- Prioritizing Connectivity: Nepal must reassess priorities and overcome Chinese-driven infrastructural delays, focusing on improving connectivity with India.
- Addressing Economic Woes: Economic challenges, including inflation and market imperfections, are linked to Nepal's landlocked status and trade norms that need reform.
- India-Nepal Collaboration: Bilateral cooperation, grounded in trust and joint action, can drive economic activities, improve connectivity, and benefit all Nepalis.
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