India Nepal Trade Relations: Whenever there is any kind of tension in India’s neighborhood, its heat is felt indirectly to India. First Sri Lanka, then Bangladesh and now Nepal… One by one, the way the spark of protest is burning in the neighboring countries of India, it has forced the Indian government to remain alert.
But, the second aspect of this is that the importance of Nepal has always been different for India as compared to Sri Lanka and Bangladesh. This small Hindu country has always been free, now it has become very unstable politically. Nepal’s PM KP Oli has resigned, while the protesters have set the Supreme Court on fire.
Why did anger erupt?
Actually, this anger is erupted in Nepal due to nepotism and corruption. But if seen in terms of trade, then Nepal is very important for India. Many districts of Bihar and UP are adjacent to the border of Nepal and there is also a relationship between the two countries.
This small country is the fourteenth largest business partner country in India. Nepal is exported to more than $ 7 billion from India, while Nepal exports about $ 1 billion in India from here.
Important relations between the two countries
It can be understood that there is a total trade of about 8 billion dollars between India and Nepal. A decade ago, Nepal was the 28th trade partner of India, but now it has come in 14th position. During the financial year 2024-25, the total trade between the two countries was $ 8.5 billion. In this, India exported $ 7.33 billion, while Nepal exported $ 1.20 billion. Export from India to Nepal is equal to about 16 percent of Nepal’s total GDP.
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