About India Nepal Relations
INDIA-NEPAL BILATERAL BRIEF
Overview:
India and Nepal share a 1,751 km long border (across 5 Indian states of Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand). India-Nepal relations are defined by deep-rooted people-to-people links as well as commonalities in religion, language and culture.
High Level Exchanges:
In a reflection of India’s “Neighbourhood First” policy, there are frequent high-level visits and exchanges between India and Nepal. Since May 2014, there have been 17 exchanges at the level of Head of State/ Head of Government between India and Nepal.
Hon’ble Prime Minister, Shri Narendra Modi, has visited Nepal five times since May 2014 and Prime Ministers of Nepal have visited India ten times since May 2014.
The last visit by Hon’ble PM to Nepal was on 16 May 2022 to Lumbini. The last official visit by a Nepalese Prime Minister to India was former Prime Minister of Nepal, Mr. Pushpa Kamal Dahal ‘Prachanda’ (PKD)’s visit to India from 31 May - 3 June, 2023. Subsequently, both the Prime Ministers also held a telephone conversation on 5 August 2023 to follow up on the decisions taken during PKD’s visit in June 2023.
Following the re-election of Hon’ble PM for the third consecutive term, a congratulatory phone call was held between PKD and PM on 5 June 2024. PKD also attended the swearing –in ceremony of Hon’ble PM in New Delhi on 9 June 2024.
Hon’ble PM congratulated the present Prime Minister of Nepal, Mr. K. P. Sharma Oli (KPO), on his appointment as Prime Minister on 15 July 2024. PM met KPO on the sidelines of the 79th session of the UN General Assembly in New York on 22 September 2024. PM also met KPO on the sidelines of the
6th BIMSTEC Summit in Bangkok on 04 April 2025. KPO also called PM on 23 April 2025 to strongly condemn the heinous terror attack in Jammu and Kashmir, and offered his sincere condolences on the loss of precious lives. The Ministry of Foreign Affairs of Nepal also issued a press release unequivocally condemning terrorism in all its forms.
As for visits by Head of State, Hon’ble Rashtrapatiji Mr. Pranab Mukherjee paid a State Visit to Nepal in November 2016. This was the first State visit by an Indian President to Nepal after a gap of 18 years. President of Nepal Mrs Bidya Devi Bhandari paid a return State Visit to India in April 2017.
At the ministerial-level, the Joint Commission, co-chaired by our External Affairs Minister (EAM) and the Foreign Minister (FM) of Nepal has met 5 times since May 2014, most recently for the 7th Joint Commission meeting in 2024 in Kathmandu.
The current Foreign Minister of Nepal, Dr. Arzu Rana Deuba (ARD), visited India on an official visit from 18 to 22 August 2024 at the invitation of the External Affairs Minister of India. During her visit ARD also called on Hon’ble PM. ARD met EAM on the sidelines of Indian Ocean Conference (IOC)-2025 in Oman on 16 Feb 2025. Recently, ARD visited India to attend Raisina Dialouge 2025. During the visit, ARD met EAM and discussed various facets of India-Nepal bilateral cooperation.
Meetings between the Foreign Ministers of the two sides on the sidelines of other multilateral and regional events are also commonplace.
Foreign Secretary, Mr. Vikram Misri, visited Nepal from 11-12 August 2024, and called on Nepal’s President, Prime Minister, and Ministers holding portfolio of Urban Development, Finance, Home and Foreign Affairs. He also had bilateral talks with the Nepalese Foreign Secretary.
Shri Munu Mahawar, Additional Secretary (North), MEA visited Nepal from 26 to 29 January 2025 to co-chair the 5th meeting of Joint Project Monitoring Committee (JPMC) on post-earthquake reconstruction projects. During the visit, he also called on Deputy Prime Minister & Finance Minister; Foreign Minister; Home Minister; Energy, Water Resources and Irrigation Minister; Industry, Commerce and Supplies Minister; and Foreign Secretary of Nepal.
At the functional level, India and Nepal have more than 40 bilateral institutional mechanisms covering the entire gamut of bilateral relations.
Major Outcomes of recent High Level Visits:
Substantial progress has been achieved in recent years in key areas of bilateral cooperation especially in the areas of connectivity – physical, digital, energy and people-to-people linkages. This is manifested in the steady implementation of infrastructure projects related to roads, bridges, cross-border railways, Integrated Check Posts and petroleum pipelines.
Some of the major outcomes of recent high level visits include landmark connectivity initiatives such as progress in the Integrated Check Posts at Nepalgunj, Bhairahawa and Dodhra-Chandni; inauguration of a freight train service between India and Nepal, progress on the Kurtha – Bijalpura and Raxual-Kathmandu railway line; momentum on the Motihari - Amelekhgunj pipeline phase II and construction of a new petroleum pipeline from Siliguri to Jhapa and Amelekhgunj to Chitwan.
Major landmarks in the power sector include the finalisation of the Long-Term Power Trade Agreement; finalisation of the trilateral power trade agreement between India-Nepal and Bangladesh; and signing of agreements with respect to the development of new Hydropower Projects in Nepal by Indian developers including the 480 MW Phukot Karnali and the 669 MW Lower Arun.
In the field of digital financial connectivity, Nepal started accepting UPI payments since March 2024 through interoperability with FonePay QR of Nepal. An MOU between NPCIL (National Payments Corporation of India Limited) and Nepal Clearing House Limited (NCHL) for facilitating cross-border digital payments is under implementation.
Nepal’s Hon’ble Minister for Water Supply, Shri Pradeep Yadav visited India in March 2025. During his visit, an MoU was signed between India and Nepal for strengthening cooperation in Water, Sanitation, and Hygiene (WASH) sector including Waste Management.
The Supreme Court of India and the Supreme Court of Nepal has signed a Memorandum of Understanding to develop, promote and strengthen the judicial cooperation between India and Nepal on 7 April 2025, during the visit of Rt. Hon’ble Chief Justice of Nepal, Justice Prakash Man Singh Raut to India.
During the visit of Union Minister of Agriculture, Farmers Welfare and Rural Development, Shri Shivraj Chauhan to Nepal for the Third BIMSTEC Ministerial Meeting on Agricultur from 08-10 April 2025, an MoU was signed on ‘Cooperation in the Field of Agriculture between India and Nepal’ with a focus on enhancing crop productivity, improving post-harvest management, strengthening agri-marketing systems, and promoting climate-resilient and sustainable agricultural practices.
Union Minister of Power and Housing & Urban Affairs, Shri Manohar Lal visited Nepal on official visit from 22-23 April 2025. During the visit, Hon’ble Minister held productive talks with Hon’ble Minister for Energy, Water Resources and Irrigation of Nepal, Mr. Dipak Khadka; reviewed progress of 900 MW Arun-3 Hydropower Project; and witnessed an MoU signing between Power Grid Corporation of India Ltd. and Nepal Electricity Authority (NEA) for two 400 kV corridors.
Union Minister for Environment, Forest and Climate Change, Shri Bhupender Yadav, visited Nepal to participate in the ‘Sagarmatha Sambaad’ Dialogue 2025, held in Kathmandu, Nepal from 15-17 May 2025. During the visit, Hon’ble Minister had meetings with Rt. Hon’ble PM of Nepal, Mr. K P Sharma Oli, Foreign Minister of Nepal, Dr. Arzu Rana Deuba and Forests and Environment Minister of Nepal, Mr. Ain Bahadur Shahi Thakuri.
Defence Cooperation:
Historically, the Armies of India and Nepal have shared an excellent and harmonious relationship based on mutual trust and respect. India and Nepal have the longstanding and unique tradition of awarding the Rank of Honorary General to each other’s Chief of Army Staff.
General Upendra Dwivedi, PVSM, AVSM, COAS, Indian Army visited Nepal from 20-24 November 2024 and was conferred with the Rank of ‘Honorary General of the Nepali Army’ by H.E. Mr Ramchandra Paudel, Rt Hon’ble President of Nepal on 21 November 2024.
General Ashok Raj Sigdel, the COAS, Nepali Army also visited India from 10-15 December 2024 and was conferred with the Rank of ‘Honorary General of the Indian Army’ by the Hon’ble President of India on 12 December 2024. He also had meetings with Raksha Mantri, NSA, CDS, COAS, Foreign Secretary and Defence Secretary.
India and Nepal have wide-ranging cooperation in the defence sector. India has played a vital role in the modernisation and capability enhancement of the Nepali Army by provisioning of various types of defence stores and imparting regular training to personnel of the Nepali Army.
The strong relations between the two armies are exemplified through the Gorkha Regiment of the Indian Army which comprises around 32,000 Gorkha soldiers from Nepal. The Defence Wing and Pension Paying Offices of the Embassy of India in Kathmandu disburse pensions to retired Gorkha soldiers from Nepal and also organise various welfare programmes including re-training, re-habilitating and assisting ex-Gorkha soldiers and their families.
The joint military exercise between India and Nepal, Surya Kiran, seeks to enhance interoperability in jungle warfare, counter terrorism operations in mountainous terrain and humanitarian assistance and disaster relief between the two sides. The 18th edition of the exercise was held at the Nepali Army Battle School, Saljhandi (Nepal) from 29 December 2024 to 13 January 2025.
The Indian Army has also been at the forefront of India’s humanitarian assistance and disaster relief (HADR) operations in Nepal, particularly during the 2015 earthquake and the Covid-19 pandemic.
Connectivity and Development Partnership:
India is the largest development partner of Nepal, with the major portion of our development assistance focussed on large scale infrastructure projects under grants. India has been active in extending development assistance to Nepal since the 1950s. Some of the major projects undertaken and completed with GoI grant assistance in Nepal include the Gauchar Airport (Tribhuvan Airport), East West Highway, Nepal Bharat Maitri Emergency & Trauma Centre, Tri Chand College, development projects in Tribhuvan University, BP Koirala Institute of Health Sciences in Dharan, and the construction of a 5-floor OPD complex of Bir hospital.
India’s development partnership with Nepal has grown substantially in the last 15 years. Several connectivity projects have been taken up, to enable and facilitate Nepal’s access to sea lanes of transport and commerce. These include:
- Rail links between Jayanagar – Bijalpura - Bardibas (Nepal’s first ever broad gauge line); Jogbani -Biratnagar; and Raxaul – Kathmandu.
- Road projects including the Hulaki/ Terai Road project;
- Integrated Check Posts (ICP) at Birgunj (Nepal’s first-ever ICP); Biratnagar; Nepalgunj, and Bhairahawa). An MoU for the construction of an ICP at Dodhara Chandani was signed in June 2023
The first cross-border broad gauge passenger train service between Jayanagar in Nepal and Kurtha in India was flagged off during the visit of Nepal’s former Prime Minister Sher Bahadur Deuba to India in April 2022, and the first freight train service between India and Nepal was flagged off during the visit of Nepal’s former Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to India in June 2023.
To boost connectivity in the far-western region of Nepal, the construction of a motorable bridge in Dharchula began in October 2022 under grant assistance.
Another major ongoing grant assistance project under construction is the Nepal’s National Police Academy (NPA) project.
To ensure continuous supply of fuel from India to Nepal, the first cross-border petroleum pipeline in South Asia connecting Motihari in India to Amlekhgunj in Nepal was completed in 2019.
In a further enhancement of India-Nepal energy cooperation, several agreements were signed during the visit of the former PM of Nepal to India in June 2023. These included an MoU for the construction of petroleum supply infrastructure between Siliguri and Jhapa, agreement to extend the existing oil pipeline from Amlekhgunj till Chitwan, and construction of two green field terminals at Chitwan and Jhapa. Phase-II of the Motihari - Amlekhgunj Pipeline is near completion. Indian Oil Corporation Limited (IndianOil) and Nepal Oil Corporation (NOC) signed a Business to Business (B2B) Framework Agreement on 3 October 2024 for the execution of projects envisaged in the G2G MoU signed in 2023.
GoI has been working with the Government of Nepal at the grass-root level through the implementation of High Impact Community Development Projects (HICDPs) in priority sectors such as health, education, drinking water, sanitation, drainage, rural electrification, hydropower, embankment and river training so as to improve the overall quality of life of Nepalese citizens at the local level. As per the revised G2G agreement signed during EAM’s visit on 4 January 2024, the financial ceiling of an HICDP has been increased from NRs 5 Crores to NRs 20 Crores. Since 2003, over 573 HICDPs have been taken up by GoI – 495 of these have been completed and the remaining 78 are on-going.
GoI has also distributed a totally of 1,009 ambulances and 300 school buses in different parts of Nepal. These services have contributed significantly to Nepal’s health and education sectors. This is in addition to the election vehicles related support that has been provided to Nepal in the past.
Aside from grant assistance, GoI has extended Lines of Credit (LoC) of USD 1.65 billion for undertaking development of infrastructure, including post-earthquake reconstruction projects. This has now been downsized to USD 750 million and new terms have to be offered for the remaining 900 million USD. GoI LOCs have financed several projects in Nepal, mostly roads, transmission lines and reconstruction projects. Many of these projects are either complete or nearing completion.
Power Sector Cooperation:
One of the win-win areas of cooperation in the India-Nepal bilateral relations is the collaboration in the power sector. The Joint Vision Statement on Power Sector Cooperation issued on 2 April 2022 during the visit of Prime Minister of Nepal to India, laid out a comprehensive roadmap for bilateral cooperation in the sector. Its key pillars include joint development of power generation projects in Nepal, development of cross-border transmission infrastructure, bi-directional power trade, coordinated operation of the national grids and institutional cooperation in sharing latest operational information technology and know-how.
In May 2021, Nepal became the first country to benefit from India’s revised guidelines (2018) on cross-border power trade in electricity when Nepal Electricity Authority entered into an arrangement with NTPC Vidyut Vyapar Nigam Ltd to buy power in real time from Indian Energy Exchange.
The first power transaction between Nepal and Bangladesh through India was inaugurated on 15 November 2024 as per the decision of GoI that was announced during the visit of former Prime Minister of Nepal Pushpa Kamal Dahal ‘Prachanda’ to India in 2023. The agreement for long term power trade signed during EAM’s visit to Nepal, and the understanding on trilateral power transactions between Nepal-Bangladesh through India, would further boost power cooperation in the neighbourhood.
India’s Humanitarian and Disaster Relief (HADR) Assistance in Nepal
India has been a longstanding partner of Nepal during emergencies and situations of crises/ natural disasters. Nepalese nationals in conflict zones have been evacuated along with Indian nationals under GoI’s evacuation efforts including ‘Operation Ajay’ and ‘Operation Ganga’.
India was the first responder when a devastating 7.8 magnitude earthquake struck Nepal on 25 April 2015. GoI swiftly dispatched National Disaster Response Force (NDRF) teams and special aircrafts with rescue and relief materials to Nepal. India’s assistance, which reached Nepal within six hours of the earthquake, included 16 NDRF teams, 39 IAF aircraft sorties with 571 tons of relief material including rescue equipment, medical supplies, food, water, tents, blankets and tarpaulin. The total Indian relief assistance to Nepal amounted to over US$ 67 million.
GoI announced a post-earthquake reconstruction package of US$ 1 billion (INR 8340 Cr] (which comprises of US$ 250 million grant and US$750 million concessional Line of Credit) during the International Conference on Nepal’s Reconstruction held in Kathmandu on 25 June 2015. The reconstruction of 50,000 private houses in Gorkha and Nuwakot has been completed in November 2021. Reconstruction of 71 schools across 7 districts has also been completed in January 2024. Further, the construction of 88 health facilities and 14 cultural heritage sites have been completed till date and remaining projects are under various stages of completion
Similarly, during the Covid-19 Pandemic, Government of India ensured that the supply lines of trade between India and Nepal remained open. Nepal was one of the first countries to receive the ‘Made in India- COIVD-19’ vaccine on 21 January 2021 which in turn facilitated Nepal’s nationwide vaccination drive. India supplied critical medicines (23 tonnes) at the early stage of the pandemic and during the critical shortage of oxygen faced worldwide during the second wave, GoI dispatched 960 LPM Oxygen Plant for operation at the BP Koirala Institute of Health Sciences in Dharan. 1 lakh doses of COVID-19 vaccines and medical equipment including ventilators, ambulances, ICU beds, PPE kits, PCR test kits were also handed over to the Nepali Army.
After the earthquake in November 2023 which had its epicenter in Jajarkot and West Rukum of Karnali Province in the western area of Nepal, India as the first international responder provided emergency relief materials in less than 48 hours. Government of India provided 5 tranches of relief supplies to Nepal consisting of 200 pre-fabricated houses, tents and tarpaulin sheets, sleeping bags, blankets, urgent vital medicines as well as other medical support equipment. Additionally, during the visit of EAM to Nepal in January 2024, it was announced that GoI will provide a financial assistance package of approx. NPR 1,000 crores (US $ 75 million or INR 625 Cr) to support reconstruction after the Jajarkot earthquake, with major portion under grant.
From 26 to 28 September 2024, Nepal witnessed unprecedented rainfall, inducing landslides and floods across a wide swathe of the country. India provided humanitarian aid, including essential hygiene supplies, medicines, life jackets, sleeping mats, food items, inflatable rubber boats, motors, tarpaulins, sleeping bags, blankets, chlorine tablets, and bottled water to support flood-affected families affected by the recent floods and landslides in Nepal. In addition, to enhance the land connectivity in Nepal, the delivery of 10 pre-fabricated steel bridges was also made.
Economic and Commercial Cooperation:
Indian firms are among the largest investors in Nepal, accounting for 35% of the total FDI stock in Nepal, worth nearly USD 777 million. Nepal is India’s 17th largest export destination, up from 28th position in 2014.India comprises about 64.1% of total trade of Nepal, equating to $7.87 billion USD (Indian FY 23-24)). This includes $7.041 billion USD of exports from India to Nepal and $829.71 million USD of exports from Nepal to India.
India is Nepal’s largest export destination, receiving an overwhelming 67.9% of its total exports (as per annual data available from Nepal Rashtra Bank (mid-August 2023-mid July, 2024).Nepal’s other large export destinations are the United States, Germany, Turkey, France, the UK, Australia, Italy, Japan and Canada. Nepal’s exports mainly constitute edible oil, coffee, tea and jute. Nepal’s main imports from India are petroleum products, Iron & Steel, Cereals, Vehicles and Parts, Machinery parts.
There are about 150 Indian ventures operating in Nepal engaged in manufacturing, services (banking, insurance, dry port, education and telecom), power sector and tourism industries.
The India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade was held in Kathmandu from January 10-11, 2025. This meeting of the IGC carried out a comprehensive review of the whole gamut of bilateral trade and economic relationship. Both sides reviewed mutual market access issues, IPR and duty related issues. India sanctioned 2,00,000 MT wheat quota as requested by Nepal.
21st Director General Level Talks on Customs Cooperation between India and Nepal held in Kathmandu from 10-11 April 2025. The talks were aimed at strengthening bilateral cooperation to facilitate cross border trade as well as to prevent and counter smuggling.
The 2nd Bilateral Talks between Narcotics Control Authorities of India and Nepal on “Drug Demand Reduction and Prevention of Illicit Trafficking in Narcotics Drugs, Psychotropic Substance and Precursor Chemicals and Related Matters” held in Kathmandu on 29 April 2025. The talks were aimed at strengthening bilateral cooperation to counter cross border illict trafficking of narcotics substances.
Security-related Cooperation:
The 8th India-Nepal SSB-APF Coordination Meeting, chaired by DG, SSB, India and IG, APF Nepal, concluded on 18 November 2024. The two sides had a productive discussion and agreed to enhance their coordination to ensure a smooth movement of citizens of both countries across the open borders.
The 13th meeting of the India-Nepal Joint Working Group (JWG) on Border Management held in Pokhara, Nepal on 27-28 March 2025. The two sides deliberated on issues related to repair and maintenance of Border Pillars, trans-boundary criminal activities, strengthening of border infrastructure particularly ICPs, roads and railway-network; and ways to strengthen cooperation in disaster risk reduction and management.
Education:
India’s development partnership with Nepal extends to the field of human resource development and capacity building. GoI provides more than 1,500 scholarships to Nepalese students each year, for courses in India as well as Nepal, across various disciplines. Since 2001, around 40,000 Nepalese students have been direct beneficiaries of these scholarship schemes.
GoI scholarships have trained 2,100 Engineers and 600 Doctors from Nepal since 2013-14. Government officials and other professionals from Nepal have been significant beneficiaries of the Indian Technical and Economic Cooperation (ITEC) programme started in 1964. Since 2001, more than 3300 professionals, bureaucrats, and defence personnel from Nepal have undergone capacity-building programmes under ITEC. In the last three years, around 171 doctors, 30 judicial officers, 60 officers from the office of the Attorney General of Nepal, 325 Nepal Police and 108 Armed Police Force professionals from Nepal have been direct beneficiaries of the ITEC Programme.
Culture:
India and Nepal share an organic cultural link. GoI initiatives to promote people-to-people contacts in the fields of art & culture, academia and media include cultural outreach through the organisation of specific events and programmes which have relevance in both India and Nepal. These events – including academic symposia and seminars, cultural programmes, workshops and round-tables are organised in partnership with different government bodies as well as relevant private organisations in Nepal. GoI also organises targeted familiarisation visits for media persons, and more recently for social media influencers, from Nepal in order to increase India’s people-to-people connections and outreach in Nepal. Mission also undertakes regular outreach activities for the promotion of Hindi, Sanskrit, International Day of Yoga, and other cultural activities as mandated by the Ministry from time to time.
The Swami Vivekananda Cultural Centre (SVCC) was set up in Kathmandu in August 2007 to showcase the best of Indian culture. The SVCC organises regular cultural outreach programmes, across various cities in Nepal, including large-scale events such as the India-Nepal Cultural festival in Lumbini in December 2023, and its second edition in December 2024 in Lumbini.
The Nepal-Bharat Library was founded in 1951 in Kathmandu as the first foreign library in Nepal with the objective to enhance and strengthen cultural relations and information exchange between India and Nepal.
The B.P. Koirala India-Nepal Foundation was set up in 1991 with the objective to foster educational, cultural, scientific and technical cooperation between India and Nepal and to promote mutual understanding and cooperation through sharing of knowledge and professional talents in academic pursuits and technical specialization, and has been facilitating cultural connections and exchanges between India and Nepal. Assistance is also provided to several organizations working to promote Indian culture and India-Nepal bilateral relations.
Further, sport diplomacy, in particular, cricket is an emerging area of collaboration between India and Nepal.
Diplomatic Missions:
Government of India has its Embassy in Kathmandu and a Consulate General in Birgunj (south-central part of Nepal).
Government of Nepal has its Embassy in New Delhi and a Consulate General in Kolkata.
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