Nepal shares a border with five Indian states (Sikkim, West Bengal, Bihar, Uttar Pradesh, Uttarakhand) and age-old civilisational and cultural ties with India, exemplified by strong people-to-people links. Nepal is a priority partner under India's 'Neighbourhood First' policy, with more than 40 bilateral institutional mechanisms covering the full gamut of relations - from connectivity and power to defence, development and culture.
COOPERATION AREAS
Where India and Nepal actually work together
8 active areas of cooperation, as of 20 June 2024. Click any card for the full brief.
TRADE & INVESTMENT
By the numbers
FY 2022-23 figures as cited in MEA bilateral brief (20 June 2024). India accounts for 64.1% of Nepal's total trade.
$8.85bn
Total bilateral trade in goods
$8.015bn
India exports to country
$839.62 million
India imports from country
~$670m (Indian firms hold 33.5% of Nepal's total FDI stock)
Nepal FDI into India (cumulative)
Trade trajectory · USD bn
$8.85bnin FY23 · click a bar to compare years
TOP TRADED ITEMS
AGREEMENTS & MILESTONES
The relationship since 1950, in 10 dates
CURRENT STATE
Where things stand, June 2024
The relationship continues to deepen across its two flagship tracks - connectivity and power. Freight and passenger rail links are expanding, cross-border petroleum pipeline capacity is growing, and hydropower cooperation (Phukot Karnali, Lower Arun, trilateral India-Nepal-Bangladesh trade) is advancing toward a genuinely regional power market. Development assistance remains substantial through HICDPs and Lines of Credit, while frequent high-level exchanges - 17 leader-level visits since 2014 - keep the relationship on an active footing despite periodic political shifts in Kathmandu.
SIGNALS TO WATCH
On track / positive momentum
In progress / worth watching
Stalled or facing headwinds
Not yet started / unclear
QUICK FACTS
CapitalKathmandu
Population30 million
RegionSouth Asia
Diplomatic tiesSince 1947
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