India-EU free trade pact could squeeze Nepal’s garment exports as LDC graduation nears
Summary
India's free trade agreement with the European Union could challenge Nepal's garment exports as the country prepares to graduate from least developed country status.
Key Points
- India and the European Union concluded a free trade agreement that will lower tariffs and increase trade between them.
- Nepal's garment exports to European markets are expected to decline further due to increased competition from Indian exports under the new FTA.
- Nepal's graduation from least developed country status in November could reduce trade benefits, impacting the garment sector and job market.
- Experts suggest Nepal should seek continued trade facilities post-graduation and pursue alternative markets and stronger economic diplomacy.
