Archive · 7 Dec 2025
India and Nepal Strengthen Economic Ties
India and Nepal are becoming better economic partners.
They are working together in areas like trade, tourism, and energy.
For example, they have improved their trade agreement to allow more goods to be transported by train.
They are also working on a big hydroelectric project that will provide electricity to both countries.
Additionally, they have made it easier for people to pay for things using their phones.
These efforts are helping both countries grow and work together better.
India and Nepal are enhancing their economic partnership through trade, tourism, infrastructure, and energy cooperation.
The Treaty of Transit was amended in November 2025 to facilitate rail-based freight between Jogbani (India) and Biratnagar (Nepal).
India exported Liquefied Natural Gas (LNG) to Nepal, enabled by cryogenic storage and regasification facilities at Simara.
The Arun-3 Hydroelectric Project, developed by SJVN Limited, aims to tap into Nepal's hydropower potential and meet India's energy needs.
Interoperability of UPI and FonePay QR has been established to facilitate financial transactions between the two countries.
- Who
- India and Nepal
- What
- Strengthening economic ties through trade, tourism, infrastructure, and energy cooperation
- When
- Ongoing, with specific projects and treaties in 2025
- Where
- India and Nepal
- Why
- To enhance economic partnership, regional connectivity, and sustainable power development
- Countries Involved
- India and Nepal
- Key Sectors
- Trade, Tourism, Infrastructure, Energy
- Treaty Amended
- Treaty of Transit (November 2025)
- Energy Cooperation
- LNG export to Nepal, Arun-3 Hydroelectric Project
- Payment Systems
- UPI and FonePay QR interoperability
- Hydropower Project
- Arun-3 (900 MW)
- Benefits to Nepal
- Free electricity, energy royalty, rural development