Consider the following statements:

1. Under Nepal-India Treaty of Trade (2009), duty-free access into the Indian market for all Nepali-manufactured goods is provided on a non-reciprocal basis.

2. There has been a free trade and commerce between the territories of India and Bhutan since the signing of the Treaty between the Government of India (GoI) and the Royal Government of Bhutan (RGoB) in 1949.

3. The Indian government has started trade in the rupee with neighboring countries, including Nepal and Bhutan.

4. India is part of the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) which aims to bridge South and West Asia.

Which of the statements above is/are correct?

Correct option is C

The correct answer is: (c)  1, 2, and 3 only

Explanation:

• Statement 1 is correct – The Nepal-India Treaty of Trade (2009) allows duty-free access for Nepali-manufactured goods into the Indian market on a non-reciprocal basis.

• Statement 2 is correct – The Treaty between India and Bhutan (1949) established free trade and commerce between both countries, with minimal barriers to trade.

• Statement 3 is correct – The Indian government has initiated trade in rupees with neighboring countries like Nepal and Bhutan, facilitating easier trade transactions.

• Statement 4 is incorrect – BIMSTEC aims to bridge South and Southeast Asia (not South and West Asia), focusing on regional cooperation among countries bordering the Bay of Bengal.

Information Booster:
• Nepal-India Treaty of Trade (2009) – This agreement has been pivotal for Nepal's economy, providing duty-free access to the Indian market.
• India-Bhutan Free Trade Agreement (1949) – This agreement has facilitated smooth trade between India and Bhutan, particularly in hydroelectricity and mineral resources.
• India and Bhutan’s use of the rupee – This arrangement has helped reduce transaction costs and enhanced trade efficiency.
• BIMSTEC includes countries such as Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan, and Nepal and promotes cooperation in various sectors, including trade, energy, and environment.
• BIMSTEC's aim is to integrate countries in the Bay of Bengal region, not to connect South and West Asia.

Additional Information:
• BIMSTEC has become increasingly important for regional economic integration in the Bay of Bengal region.
• India’s bilateral relations with Nepal and Bhutan are significant for regional stability and economic cooperation.
• The rupee trade arrangement with these countries helps simplify monetary exchanges in regional trade.