The trade transit treaty between Nepal and India expired on 5 January. Officials from Nepal's Ministry of Finance have yet to clarify if it will be renewed, with Secretary Bhagat Bahadur Thapa's saying that it is under consideration. We spoke to Javed Asaraf, commerce counsellor at the Indian Embassy, whose diplomatic responses implied that good news is not on the way.

What is the state of the Transit Treaty?
Javed Asaraf: The treaty can be automatically extended for seven years during its first term if none of the signatories has decided to end it by giving notice six months in advance. But amendments and reviews can be made before it is renewed.

Is India attempting to amend the treaty?
Generally, the treaty has been working well. But it has been in force for seven years and we are thinking it is time to make amendments in order to improve it. The treaty's clause 11 also states that amendments can be made if the situation changes.

What will the amendments be and when will they happen?
We are still in the process of discussing this. On 2-3 December, His Majesty's Government of Nepal organised a meeting at which several key issues were discussed. The results were quite productive.

Do you think the treaty will be renewed?
We are interested to sit with HMG/N to speed up the process of amending and renewing it.

How are economic and trade relations between India and Nepal in the present political context?
We have very good economic and trade relations. Despite the current political and financial state of Nepal, trade has been growing between the two countries. Indian investment in Nepal has also increased and Indian tourists have helped to boost Nepal's tourism sector. Indian economic support to Nepal has also been growing. There are now over 100 projects supported by India country-wide in education, health and development sectors. India is also implementing big infrastructure projects. Till now, India has launched programs worth more than Rs 13 billion.