‘The challenge is to build sustainable economic relationship with Nepal’

Sunil Kohli, Managing Director, Rahat Cargo said, “Nepal’s just concluded violent Gen-Z protests, have already disrupted to a considerable extent, the business operations, border activities and governance. For India, which is Nepal’s largest trading, investment and development partner, it underscores a recurring risk that must be factored into trade strategy. Primarily, the sheer structural dependence of Nepal on Indian imports, ranging from petroleum to cereals, poses vulnerabilities. India’s exports to Nepal in 2024 were valued at USD 6.95 Billion, led by mineral fuels, iron, steel, machinery, vehicles, electronics, cereals, plastics and pharmaceuticals. Therefore, any disruption in such export activities is bound to affect the Indian’s exporters economically. Further, for smaller Nepali exporters in agriculture, handicrafts and textiles, the business-related frictions make accessing Indian markets prohibitively difficult. Fortunately, consequent upon the normalcy having returned to Nepal with an interim PM in place, the challenge for our government is not just about fixing numbers, but about building a sustainable economic relationship with Nepal’s while reinforcing India’s leadership in the region.”