India is considering granting ISI certification to Nepal-made cement, pavers blocks, and electrical products as part of its efforts to enhance strategic and economic relations with its South Asian neighbours. The move is seen as a response to China’s growing influence in the region, with India aiming to strengthen its ties with Nepal and restrict China’s interventions in the country.
The Indian Standards Institute (ISI) mark is mandated for imports and requires a quality validation certificate from the Bureau of Indian Standards (BIS). This certification ensures that imported products meet Indian standards, assuring consumers of their quality, safety, and reliability. India’s plans to grant ISI certification to Nepali cement and electrical products aim to boost economic ties between the two countries. Currently, India mainly imports vegetable oil, textiles, engineering goods, spices, jute products, and chemicals from Nepal. However, the imports have seen a decline in recent years, with Indian imports from Nepal falling from $1.3 billion in 2020-22 to $838 million in 2022-23. By allowing Nepali products to meet Indian standards through ISI certification, India hopes to increase trade flow and provide an assured market for its smaller neighbour.
Nepali manufacturers have been urging their government to support discussions on obtaining ISI certification for their products. This move would not only open up the Indian market for Nepali cement and electrical products but also allow Indian partners of Nepali firms to assert their ownership in these companies. The certification would also benefit the Nepali government through increased revenue from duties on these imports.
Given Nepal’s geopolitical importance in South Asia, India sees the need to strengthen its strategic relationship with the country. By focusing on economic diplomacy and providing an assured market for Nepal’s products, India aims to bring Nepal closer as a strategic partner. This approach is seen as an opportunity to leverage the economic potential of the long border between the two countries, rather than solely viewing it from a security perspective.
RTM Watch’s Take
India’s plans to grant ISI certification to Nepali cement and electrical products reflect its efforts to enhance economic ties with Nepal and counter China’s influence in the region. By providing an assured market for Nepali products, India aims to strengthen its strategic relationship with Nepal and restrict China’s interventions in the country. This move not only benefits Nepal’s manufacturers but also opens up new opportunities for Indian partners of Nepali firms. The certification process will ensure that the imported products meet Indian standards, assuring consumers of their quality and safety.
