New Delhi, Dec 7 – According to Nepalese news outlets, India and Nepal are tightening their economic ties, boosting cooperation in trade, tourism, infrastructure, and energy.
Tourism plays a key role, as both countries boast rich cultural heritage and scenic landscapes that attract travelers from each side and beyond. Governments on both sides are therefore pushing for large‑scale tourism development, even exploring non‑traditional destinations, a Nepal Aaja digital news article noted.
In November 2025 the two countries amended the Treaty of Transit to improve cross‑border connectivity. The new provisions ease rail freight movement between Jogbani in India and Biratnagar in Nepal, covering bulk cargo. The liberalisation also extends to major transit corridors, which will not only strengthen multimodal trade between the two nations but also open new trade routes for Nepal with third countries. The article highlighted these steps as a means to deepen economic and commercial links.
Energy cooperation is also expanding. In line with their clean‑energy commitments, India’s Indian Oil Corporation Ltd. (IOCL) has begun exporting liquefied natural gas (LNG) to Nepal, made possible by new cryogenic storage and regasification facilities at Simara. The move reinforces shared goals of sustainability and operational efficiency by creating a viable industrial energy pipeline.
The famed Arun‑3 Hydroelectric Project, built by the Indian public‑sector company SJVN Limited, taps Nepal’s abundant water resources to produce 900 MW of run‑of‑the‑river power. The plant exemplifies a robust bilateral partnership: it supplies Nepal with free electricity, satisfies India’s growing energy demand, and generates local economic opportunities. Nepal will receive energy royalties, benefit from rural electrification, and support local infrastructure development. In this economic symbiosis, India offers “ready and dynamic market to Nepal’s immense hydropower generating resources”.
On the financial side, India and Nepal have introduced interoperability between UPI (Unified Payments Interface) and FonePay QR, easing cross‑border transactions. Even during the global COVID‑19 lockdown, the trade corridor between the two countries remained operational, underscoring the resilience of their economic ties.
These reciprocal economic engagements extend beyond mere partnership, shaping a shared future anchored in centuries of cultural connection and mutual history.
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