Politicians, industrialists and economists on Tuesday urged India not to mix the political issues with the economic agendas as the Indian trade embargo on Nepal continues to cripple the country’s economy.

Speaking at an interaction titled ‘Nepal-India Trade, Transit and economy: Past, Present and Future’, they said that bilateral economic relations should not be the hostage of political differences. Indian Ambassador to Nepal Ranjit Rae was among those in attendance at the event jointly organised by the Nepal-India Chamber of Commerce and Industry, and the Asian Institute of Diplomacy and International Affairs.

India imposed an embargo on Nepal since September 22, two days after the country promulgated new constitution which New Delhi sees as an attempt to curb the political influence of the Madhesis.

Former Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari urged India to help remove the hurdles at the no-man’s-land on the Nepal-India border, saying that the current embargo has hurt the economy badly.

The government has projected that the economy would grow by under 2 percent, while the Nepal Rastra Bank has warned that it could contract for the first time in 33 years as a result of the Tarai unrest and Indian embargo.

Adhikari said that the two countries should focus on mutual economic benefits by forming joint committees comprising traders, government representatives and experts to boost bilateral trade and investment.

Former Commerce Secretary Purushottam Ojha said the current problem cropped up as India put political and economic agendas in a single basket. He urged both the governments for a joint effort to resolve the present impasse.

“The blockade has affected both Nepal and India, but severity of the impact on Nepal is huge,” Ojha said, adding the blockade on the formal trade has given rise to an informal economy which is eating into the government’s revenue collection.

Shekhar Golchha, vice-president of the Federation of Nepalese Chambers of Commerce and Industry, urged both the countries

take measures to mend ties, saying that the current impasse has created sense of insecurity among people on the both sides.

Anuj Agrawal, vice president of the Confederation of Nepalese Industries, blamed both the countries for undermining the bilateral economic cooperation.

“Both the countries have to work in getting over the misconception and mistrust that has led to the repercussion seen at present,” he said.