New Delhi, Aug 20 : Commerce and Industry Minister Anand Sharma has stressed on the need for increasing bilateral trade between India and Nepal to energize economic development in the region.

He revealed this during his interaction with Rajendra Mahato, Nepal''s Commerce Minister, here on Wednesday.

Senior officials of both countries were also present.

Both Ministers discussed the proposed revised Treaty of Trade and Agreement of Co-operation.

Sharma hoped the proposed treaty would lead to a furthering of economic engagement by increasing the mutually agreed points of trade and result in both investment and employment generation.

The present trade between India and Nepal during the year 2008-09 (April-Feb) is 1862.02 million dollars and is expected to touch over three billion dollars.

Nepal''s major exports to India consist of vanaspati ghee, yarn, textiles, GI sheet and other wires, juice, sacks, twins and chemicals.

Nepal depends upon India for most of its essential foodgrain supplies like rice, medicines, petroleum products, infrastructure items such as cement and steel, transport vehicles, spare parts, machinery equipment, chemicals, electronic and agricultural equipments.

India is also a major investor in Nepal.

Currently, it is estimated that there are over 400 Indian-sponsored projects. Over 44 per cent of Nepal''s FDI is contributed by India. (ANI)