Goldstar Shoes Gets a Boost as Nepal Pushes India to Cut BIS Red Tape
Nepal’s government is gearing up for two crucial days of trade talks with India, aiming to address long-standing bureaucratic barriers that have severely impacted exports. At the center of the discussion is the Bureau of Indian Standards (BIS) certification, which has caused significant disruptions for Nepali exporters, including Goldstar Shoes, the nation’s largest footwear brand.
Goldstar Shoes has been a symbolic casualty of this issue, with over 100 trucks of its products stuck at the border since October 2024 due to certification delays. This resulted in the company shutting down operations, laying off over 1,200 workers, and threatening further cuts. The trade talks are now a critical opportunity to resolve these challenges and restore confidence in Nepal’s export industries.
Nepal’s Push for Fair Trade
The upcoming meeting of the Nepal-India Inter-Governmental Sub-Committee (IGSC) will focus on removing the red tape that has blocked Nepali products from entering India. For Goldstar Shoes, this could be the lifeline it has been waiting for, as India’s strict BIS certification rules have brought production and exports to a standstill.
“Nepali manufacturers have been facing significant delays due to India’s BIS requirements. This issue is a top priority for the talks, and Nepal will push for a mutual recognition agreement,” said an official from the Ministry of Industry, Commerce, and Supplies.
A mutual recognition agreement (MRA) would allow Indian authorities to accept certifications from Nepali agencies, bypassing the need for prolonged approvals and helping exporters like Goldstar resume normal operations.
The Bigger Picture: Nepal-India Trade Relations
The struggles of Goldstar Shoes highlight broader issues in Nepal’s trade relationship with India. In the last fiscal year, Nepal imported goods worth Rs996.68 billion from India but exported only Rs103.17 billion, resulting in a massive trade deficit of Rs893.50 billion. The BIS certification delays have further restricted Nepal’s ability to balance this gap.
Several Nepali industries, including cement, sanitary products, and textiles, have also suffered due to India’s non-tariff barriers. These hurdles have not only disrupted trade but also led to job losses and financial strain for many businesses.
Goldstar Shoes: A Case Study in Trade Barriers
Goldstar Shoes, which exports nearly 60% of its production to India, has faced unprecedented challenges due to BIS delays. In October 2024, the company shut down its Bhairahawa factory, leaving thousands of workers unemployed just before the Dashain festival. Despite meeting all quality standards, the delays in certification have cost the company millions and tarnished its reputation in the Indian market.
This isn’t an isolated incident. Goldstar’s troubles are part of a broader pattern of bureaucratic red tape that has made it increasingly difficult for Nepali businesses to compete in the Indian market.
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Key Focus Areas for the Trade Talks
Nepal’s agenda for the talks includes:
Trade experts are urging both countries to prioritize implementation. “Making agreements is one thing, but ensuring they are followed through is what matters. Past meetings have often lacked concrete outcomes,” said trade analyst Posh Raj Pandey.
A Glimmer of Hope for Goldstar and Beyond
For Goldstar Shoes, a resolution to the BIS issue would not only restart operations but also restore the livelihoods of thousands of workers. The company’s struggles have become a rallying cry for stronger economic diplomacy between Nepal and India.
The trade talks also provide an opportunity for Nepal to push for long-term solutions, such as better access to Indian ports and a review of outdated trade agreements. These measures could help diversify Nepal’s export portfolio and reduce its reliance on India.
The Road Ahead
The challenges faced by Goldstar Shoes and other Nepali exporters highlight the need for stronger trade policies and diplomatic efforts. As Nepal and India sit down for these critical talks, the hope is that both sides will move beyond promises and deliver actionable solutions.
If successful, this meeting could mark a turning point for Nepal’s export industries, providing much-needed relief for businesses like Goldstar Shoes and setting the stage for a more balanced trade relationship with India.
Key Takeaways