NRB to let more imported goods against convertible currency from India

The Nepal Rastra Bank (NRB) has decided to increase the number of goods in the list that are imported from India by paying convertible currency.
The central bank, through the Monetary Policy 2013/14, aims to reduce the cost of goods that are imported from the Southern neighbor. "Additional goods will be included in the list of goods that are imported from India by paying convertible currency," reads the full text of Monetary Policy that the NRB unveiled last week.
As of now, there are 161 different goods that are imported from India against convertible currency.
"The Nepali traders shouldn´t pay additional taxes when they import goods from Indian market against convertible currency," Bhaskar Gayawali, spokesperson of the NRB, told Republica.
The NRB had added only one good in the list, namely, Mango Pulp, in last fiscal year 2012/13.
Businessmen have welcomed the NRB´s move. "We want the NRB to include goods pertaining to the automobile and service sectors," Pashupati Murarka, the vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said.
According to Muraraka, Nepali businessmen have to pay 12.36 percent as a service charge to the Indian government while importing different consulting services. “We even pay a trading charge to the Indian government when we carry out transactions in dollar,” Murarka said.
Similarly, the central bank has also stated that it would simplify the procedure of exchanging amount of currency that is required for transport.
The NRB will include the goods in the list only on the basis of the recommendation made by the Department of Industry (DoI). "We will request the DoI to add goods from the automobile industry and service sectors," Murarka informed.
Additionally, the NRB has increased the amount of one-time payment money from USD 25,000 to 30,000 while importing goods from third countries.
However, trade experts aren´t that upbeat about the NRB´s move. "This move is not going make any significant difference to the bilateral trade between Nepal and India," trade expert Dr Ratnakar Adhikari at the South Asia Watch on Trade, Economics and Environment (SAWTEE), said. "Nonetheless, this is a good move."