Eye on China, India plans ISI certification for Nepali cement, electrical products

In a move aimed at fostering ties with its strategically important neighbour Nepal, the Indian government is considering granting ISI certification to cements manufactured in Nepal, pavers blocks, and electrical products. Pavers blocks are used for building footpaths, walls, etc. The plan is seen as a part of India’s confidence building measure to boost closer economic ties with neighbouring countries, two officials said.

The ISI (the Indian Standards Institute) mark is required for import of any product manufactured outside India and a certificate to validate its quality is issued by the Bureau of Indian Standards (BIS) that works under the ministry of consumer affairs. The stamp certifies that these products meet Indian standards.

Queries sent to the ministries of commerce, consumers affairs, the secretary of consumer affairs, director general BIS, and the Embassy of Nepal in New Delhi remained unanswered till press time. Nepal’s industry has also reached out to its government to facilitate these conversations. According to one of the officials cited above, the proposals of Nepali manufacturers are being examined by the consumer affairs ministry.

“The ministry is vetting the provisions for granting ISI certification, which is a mandatory norm for introducing foreign goods in Indian markets," the official said, adding the certification process will be done by BIS, an apex body of the consumer affairs ministry for quality control. Another official stated that most of the Nepali firms’ partners are Indian and they want to import the cement and other products claiming their share in the firm.

“Given the geopolitical importance of Nepal in South Asia, India is making its efforts to iron out the difference and cement a strong strategic relation with the bordering nation and restrict the ‘intentional’ interventions in Nepal by China," said Abhash Kumar, assistant professor of economics at Delhi University.

Indian trade with Nepal has witnssed a deficit of 13% in the April November period of this fiscal (2023 24) from the corresponding months of the last fiscal as India's exports to Nepal moderated to $4.70 billion (April November 2023) from $5.42 billion in the corresponding months of the last fiscal.

The move is hailed by cement traders, particularly in Bihar. “If the government allows ISI certification to Nepali cements and electrical products, it will add to the government exchequer. Besides, the key construction material will be available for consumers at cheaper rates," said Ashish Singh, a cement trader based in Bihar’s Katihar that shares its borders with Nepal.

Among the key commodities that Nepal imports from India include petroleum products, engineering goods, drugs and pharmaceuticals, electronic goods, rice, fruits & vegetables, textiles, tobacco, etc. “If we want to reconfigure trade flows that is happening from South Asia towards China, it has to be a tangible economic diplomacy and ensuring assured market for our smaller neighbour like Nepal is one of the ways to bring strategic partners in the core of our policy framework," said Dattesh Parulekar, assistant professor of international relations, Goa University.

“Given we have a long border with Nepal, we have to leverage the fact that it has to be seen from an economic opportunity prism instead of an exclusively security prism", Parulekar told . Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.