Commerce and Industry Minister Anand Sharma met his Nepalese counterpart Rajendra Mahato here Wednesday to take forward the proposed Treaty of Trade and Agreement of Cooperation.

Nepal also made a strong pitch for a revised trade treaty and stressed that attracting Indian investment in key areas like roads, infrastructure, energy, education and health topped priority of his government.

'We are promoting an investment-friendly environment and a liberal trade policy,' Nepal told Indian business leaders at a function Tuesday.

India is a major investor in Nepal, with over 400 projects and accounting for about 44 percent of Nepal's foreign investment.

Bilateral trade has jumped from $209.5 million in 1995-96 to over $2 billion this year.