The Nepal–India Chamber of Commerce and Industry (NICCI) has recommended to Home Minister Om Prakash Aryal that the government strictly monitor unauthorised trade along the Nepal–India open borders.

Recently, the Government of India reduced and adjusted GST on domestic products to make them more competitive, boost consumption, and maintain market demand. As a result, the maximum retail price of daily-use goods and other Indian products has fallen significantly, making them cheaper than locally produced items in Nepal.

Despite these changes, the Government of Nepal has not adjusted customs duties or tax rates on raw materials and finished goods, introduced relief programs to lower production costs, or implemented industry-friendly policies to counter the impact of India’s GST adjustments. This has made it difficult for Nepali products to remain price-competitive, leading to a surge in unauthorised trade.

This uncontrolled inflow is harming Nepali industries, formal businesses, and the domestic market, making them increasingly uncompetitive.