A person from Nepal crossing the border everyday to come to India to work is a normal resident of India
Answers
Answer:
because Nepal not demand pasport
Explanation:
India and Nepal share deep social, cultural, strategic, political, and economic ties that have been forged over many centuries. Unfortunately, ties wither if exposed to the changing fundamentals of time. India-Nepal ties have frayed slowly as the economic bonds between the two countries have failed to keep pace with India’s modernization and growth. The opportunities offered by India’s prospering economy have become increasingly inaccessible, and thereby irrelevant to ordinary Nepalis.
The persistent border dispute between the two countries is an opportunity for them to modernize old ties towards a shared vision of prosperity. India and Nepal must do more than merely resolve boundary issues. They must return to the core strengths of their unique social, cultural, strategic, political, and economic bonds and modernize ties to directly connect its people, markets, finance, and technology.
Old ties fallen into state of disrepair
Thousands of people in India and Nepal cross the open border every day to work, buy, sell, and transact businesses. India remains Nepal’s dominant trade partner, steadily accounting for approximately 60-65% of all trade with Nepal even as other countries, such as China have made significant inroads in the last few years. But behind the numbers on India-Nepal trade is a complex network of informal arrangements across borders that has made it possible. Cousins deal with one another across the borders; business associates with sons and daughters married into each other families. Lenders and suppliers that offered credit based on family references. Cash that moved easily across the border.
Such informal ties and the simplicity of those traditional businesses are now under stress. The Indian economy is modernizing, transitioning from the informal into the formal economy. Contracts are being required. Complex documentation is needed to move products across borders. Stronger controls are making it difficult to move cash and make payments. The India-Nepal border that had once never prevented cousins, brothers, sisters, friends and associates from doing business with one other has now become a boundary that separates.
For many small and medium Nepali businesses, it is now easier to trade with China. This isn’t because China has rendered India uncompetitive. Rather, the rules have made it harder to do business with India.
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SMEs are being left behind
India-Nepal trading agreements still carry vestiges of old rules. For example, Nepali traders cannot import products from India that are not manufactured in India. Today’s global scenario has changed: multi-national companies have set up in India and generally assign responsibility of the whole South Asian region to their India office. Large business work around these by routing trading agreements through third country, but small business are unable to do that. Instead, doing the equivalent business in China is much easier.
Despite open borders, complex regulatory requirements have complicated import-export between the two countries. This is disproportionately felt on small businesses. From import export codes to harmonized product codes and invoice sanctity, the practical complexity of trade often leaves it open to high level of the discretionary authority of local customs officials – a sure way to frustrate those seeking to do business. Large business that consistently do business find ways to get around this but opportunistic (or spontaneous) trade, which are often small in volume, are significantly hurt by these rules. The end result: opportunistic trade opportunities that are often the basis and spark for longer term investments are simply put off because the transactions take too much time.
The historic complex informal economic network that is the bedrock of India-Nepal trade will not modernize on its own. But these are the ties that will bind – they cannot be left to wither. Decision-makers must recast these ties: modernize and make it relevant again to the people that share in its benefits. With China now a factor directly or indirectly influencing India-Nepal relations, decision-makers must act swiftly to remove anomalies blocking economic engagements. They must allow people across the borders to share in each other’s growth just as they did before.
Government to government means nothing
Once the single largest source for Foreign Direct Investments (FDIs) in Nepal, India has seen its position erode with growing Chinese investments. In 2019, for instance, China accounted for approximately 40% of new FDIs against India’s 30%. The relative decline in Indian investments in Nepal reflects two underlying factors.