Long-standing cultural affinities and close friendships between India and Nepal have defined their relationship. Both countries have worked hard over the years to improve bilateral relations and create a climate that is conducive to economic expansion. The most recent CII India-Nepal Business Summit was a significant turning point in the development of this partnership. With the progress achieved and agreements struck during the June 2023 visit to India by the prime minister of Nepal, the future of the two countries’ ties looks bright and ready for growth.

The visit was highlighted by the prime minister of Nepal, Pushpa Kamal Dahal, who also invited Indian investors to investigate industries like mining, manufacturing, agriculture, energy, tourism, infrastructure, information technology, and hospitality. Nepal is a desirable location for investment due to its wealth of natural resources, huge human capital pool, and prospective market. This concept enjoys the endorsement of the Indian government.

Mutual Progress

India continues to be Nepal’s principal trading partner and source of foreign investment, in addition to serving as a transit nation for almost all of Nepal’s commerce with other countries. Nepal’s exports to India have almost doubled over the previous ten years, while India’s exports to Nepal have increased significantly, more than eightfold. The interdependence of the economies of the two countries is highlighted by the fact that almost all of Nepal’s petroleum imports come from India, along with around two-thirds of its commerce in goods, one-third of its trade in services, and one-third of its foreign direct investments.

strengthening ties by bringing people together

In the relationship between India and Nepal, connectivity has been an important area of concern. Highways, I-ways, and Trans-ways, or the “HIT formula,” proposed by Prime Minister Narendra Modi, would act as a compass to make sure that borders do not act as obstacles between the two friendly countries. In India, almost 8 million inhabitants of Nepal reside and are employed. Infrastructure improvements that improve connection will inevitably boost both countries’ economies.

In recent years, the two friendly countries have also undertaken various firsts, demonstrating the growing bilateral connections. These achievements include the development of the first Integrated Check Post (ICP) in Birganj, the first cross-border oil pipeline between India and Nepal, and the first broad-gauge railway line between the two countries, which adds a new level of connectivity across borders.

Energy for Nations

India and Nepal have both made significant efforts to improve their collaboration in the electricity industry. The construction of new transmission lines across the border for the import of over 450 MW of power from Nepal and the signing of an agreement for the ambitious goal of importing 10,000 MW of electricity from Nepal over the next ten years are the results of the two countries’ adoption last year of a landmark vision document to foster collaboration in this area. These successes and goals serve as examples of the dedication and development made in order to improve connection and collaboration between India and Nepal. Both nations have also achieved agreements on significant hydro-electric projects, notably the Phukot-Karnali and Lower Arun Hydro-Electric projects, in order to further strengthen their collaboration in the power industry. These initiatives have a high chance of using Nepal’s rich hydropower resources and strengthening their economic and energy cooperation. A major step towards greater regional cooperation is also represented by the trilateral agreement that permits Nepal to export electricity to Bangladesh utilizing the Indian transmission network.

The decision to expand the Motihari-Amlekhganj petroleum pipeline to include Chitwan has been decided in light of the pipeline’s beneficial effects. Not to mention, a new pipeline from Siliguri to Jhapa in eastern Nepal will be built, allowing for effective petroleum transportation and enhancing the energy security of the area. New storage terminals will be built at key sites in Chitwan and Jhapa to support these initiatives, enabling effective handling and distribution of petroleum products. These accomplishments demonstrate how India and Nepal are working more closely together in the electricity and energy sectors.

cultural affinity

According to Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Government of India, the two countries have a relationship that is characterized by a shared history, a deep cultural affinity, and a strong friendship rather than being limited to political, geopolitical, or economic issues. Both the governments of India and Nepal have repeatedly reiterated their commitment to fostering this bond and have taken risky actions to alter the development landscape. The business sector, which acts as a potent development engine, must strongly concur and back these initiatives.

This partnership has a great deal of potential for future cooperation. India and Nepal can develop a mutually advantageous economic cooperation that fosters progress and prosperity for both countries by building on each other’s strengths and cooperating to overcome these issues.

Leave a Reply

Your email address will not be published. Required fields are marked *