‘Two-thirds of our trade is with India’: Why New Delhi is important to Kathmandu, Nepal FM calls ties ‘very strong’ | Today’s news
Nepal’s Foreign Minister Shisir Khanal described relations with India as “excellent” and “multidimensional”, highlighting the two countries’ deep trade, connectivity, social and cultural ties.
Speaking at an Asia Society event in New York, Khanal said around two-thirds of Nepal’s trade is with India, while cultural and social ties between the two countries remain strong.
“Given the multi-dimensional nature of our relationship, two-thirds of our trade is with India, we have access to ports, all because of the northern border, it’s through India. Cultural social ties are also very strong between the two countries,” Khanal said.
He admitted that political ties can sometimes experience an “ebb and flow”, but said that “right now” Nepal’s relationship with India is in “one of the excellent” phases.
Why is trade important to Nepal-India relations?
India is Nepal’s largest trading partner and provides the landlocked country with vital transit access to international markets.
Trade with India accounts for about two-thirds of Nepal’s total foreign merchandise trade, according to figures cited by the Indian embassy in Kathmandu.
India also received 81.1% of Nepal’s total exports in the fiscal year 2024-25, according to data provided in the information provided.
Indian companies are also among the main investors in Nepal. Meanwhile, goods manufactured in Nepal get duty-free access to the Indian market under the bilateral trade framework, subject to certain conditions.
Nepal also relies heavily on transit routes through India for access to world trade.
Read also | India and Nepal seek to facilitate trade, transit barriers as trade recovers
The Raxaul-Birgunj corridor is one of the key routes used for Nepal’s bilateral trade and trade with third countries.
Why India-Nepal relations go beyond trade
The relationship goes beyond trade and commerce. “Roti-Beti ka Rishta” is a phrase often used by leaders on both sides to symbolize the deep family and marital ties shared across communities.
In his June 2026 meeting with Khanal, Indian External Affairs Minister S Jaishankar described the relationship as built on “vibrant people-to-people ties, cross-border connectivity and shared cultural and religious traditions”.
Siddhartha Gautama (Lord Buddha) was born in Lumbini, Nepal, but traveled throughout parts of India, later attained enlightenment in Gaya, delivered his first sermon in Sarnath, and died in Kushinagar.
Millions of people travel between holy places like Pashupatinath Temple in Kathmandu, Janaki Temple in Janakpur and holy places in India. Languages such as Nepali, Maithili, Bhojpuri and Hindi are spoken on both sides of the border.
The 1950 Treaty of Peace and Friendship allows citizens to move freely without passports or visas across the 1,751 km long open border shared with five Indian states.
Military ties are another long-term part of a relationship. Notable links include the tradition of Nepalese Gorkha soldiers serving in the Indian Army and the practice of conferring reciprocal honorary general ranks on the army chiefs of both countries.
How India-Nepal relations look under the new leadership of Kathmandu
The focus on India comes amid renewed high-level engagement between Kathmandu and Delhi after Nepali Prime Minister Balendra “Balen” Shah took charge in Kathmandu.
Read also | Balen Shah released a rap song today ahead of his swearing in as the Prime Minister of Nepal | Watch
Rastriya Swatantra party president Rabi Lamichhane visited India this June at the invitation of BJP national president Nitin Nabin. He also met Prime Minister Narendra Modi during the visit.
Prime Minister “Balen” Shah also accepted Modi’s invitation to visit India. Nepali media reports suggested that the visit could take place around November 2026 and would be Shah’s first official bilateral foreign visit.
