India and Neighbours India and Neighbours


np-inPrime Minister with the President of Nepal Dr Ram Baran Yadav at New Delhi (2 February 2011)India and Nepal enjoy a special and unique relationship rooted in shared heritage, civilization, culture and extensive people-to-people relations. India attaches the highest priority to its relations with Nepal and is fully committed to further enhance and expand this relationship. A peaceful, democratic, stable, strong and prosperous Nepal is not just in India's interest but would also contribute to the prosperity of the region as a whole.

India continues to be a major trading partner of Nepal. Nearly 60% of Nepal’s foreign trade is with India and 48% of its FDI comes from India. Around 40% of Nepal’s tourists come from India and more than 5 million Nepalese find employment in India.

Development cooperation between India and Nepal, which covers a broad canvas, including physical infrastructure, water resources, human resource development, health, power, civil aviation, tourism, and agriculture, has now entered a new era. It is planned to construct over 600 Kms of roads in the terai region of Nepal, establish two integrated check-posts and two cross-border railway links over the next three years. In the second phase, additional 800 Kms of roads, three cross-border railway links and two integrated check-posts would be constructed. These will contribute substantially to Nepal’s development efforts and facilitate trade, investments and people-to-people contacts between the two countries. India is committed to continuing this engagement and cooperation with utmost sensitivity and attention that it deserves.

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