Over the decades, this relationship has evolved into one of South Asia’s most vibrant partnerships—defined by development, tourism, and sports diplomacy. 

From infrastructure projects that empower rural communities to the enthusiastic presence of Indian tourists fueling Nepal’s economy, and from new schools to cricket stadiums, the India-Nepal relationship today stands as a model of regional cooperation built on trust and mutual progress.

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Building the foundations of progress

India remains Nepal’s largest development partner, contributing across sectors such as education, health, connectivity, agriculture, and energy. 

In May 2025, New Delhi pledged NRs 474 million (approximately USD 3.39 million) for 12 new High Impact Community Development Projects (HICDPs) in Nepal. 

These projects include the construction of new school buildings, water supply systems, healthcare facilities, and agricultural centres—each designed to improve the lives of people at the grassroots level.

In a separate commitment, India signed MoUs worth NRs 390 million (USD 2.78 million) for five HICDP projects focusing on education and healthcare, including the construction of new secondary schools in Dhanusha, Parsa, Achham, and Bara, as well as a five-bed hospital in Manang. 

Together, these initiatives underscore India’s commitment to empowering communities through essential social infrastructure.

Since 2003, India has implemented 579 HICDPs in Nepal—496 already completed and 83 ongoing—reflecting a consistent partnership that touches nearly every province of the country. 

These projects, implemented through Nepal’s local authorities, have brought real benefits: clean drinking water in Solukhumbu, better maternal health facilities in Dhading, and new opportunities for farmers in Bajura.

The scale of cooperation goes well beyond small-scale initiatives. India has funded major infrastructure projects, such as the Jayanagar–Bijalpura–Bardibas rail link, Nepal’s first cross-border broad-gauge railway, and the Motihari–Amlekhgunj petroleum pipeline, the first of its kind in South Asia. 

The latter has not only improved energy efficiency but also reduced petroleum costs in Nepal by nearly NRs 2 per litre, benefiting thousands of households.

Large-scale connectivity projects—such as integrated check posts, road networks, and power transmission corridors—are redefining Nepal’s access to regional trade. 

The ongoing Siliguri–Jhapa petroleum supply pipeline and 400 kV transmission lines under India’s grant assistance represent another step toward energy self-reliance and cleaner growth.

Beyond these visible structures, India’s development cooperation also includes human development. 

Each year, over 1,500 Nepali students receive scholarships to study in India, and since 2001, more than 3,300 professionals from Nepal have benefited from India’s technical and capacity-building programs. 

This long-term investment in people continues to nurture a new generation of Nepali engineers, doctors, and civil servants who are shaping the nation’s future.

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A shared journey through tourism

Tourism has long been the cultural and emotional bridge connecting the two nations. 

For India, Nepal is not just a neighbour but a spiritual extension—home to Lumbini, the birthplace of Lord Buddha, and the majestic Himalayas, which attract thousands of Indian pilgrims and trekkers each year.

Before the pandemic, Indian tourists accounted for over 30% of Nepal’s international arrivals, and the trend has rebounded strongly since 2023. 

In 2024, nearly 350,000 Indian visitors entered Nepal, making India the largest source of tourists for the country. This influx has revitalised hotels, trekking agencies, restaurants, and small businesses—particularly in Pokhara, Kathmandu, and Janakpur.

The revival of cross-border rail services and simplified digital payments via UPI-FonePay integration in 2024 have made travel even more seamless. 

Today, an Indian traveller can pay for a cup of tea at a Pokhara café using the same QR code used in Delhi or Mumbai—an example of how technology is breaking barriers and encouraging tourism-led growth.

For Nepal’s economy, this tourism surge translates into real gains. Each Indian tourist spends an average of USD 500–600 per visit, contributing significantly to the local service economy. 

The hospitality, transport, and adventure sectors in particular have seen double-digit growth, driven largely by Indian visitors exploring cultural, wellness, and eco-tourism circuits.

Cultural tourism has also seen a boost with events like the India-Nepal Cultural Festival in Lumbini, organised by the Swami Vivekananda Cultural Centre in Kathmandu. 

These initiatives celebrate the shared heritage of the two nations while inviting younger generations to rediscover their interconnected histories.

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Cricket: The new symbol of friendship

In recent years, sports—especially cricket—have become a defining chapter in India-Nepal relations. Once a niche pursuit, cricket in Nepal has exploded in popularity, and much of its growth story carries an Indian connection.

From providing equipment and technical expertise to facilitating exposure matches with Indian domestic teams, India’s support has been instrumental in Nepal’s cricketing rise. 

The Board of Control for Cricket in India (BCCI) has extended training opportunities for Nepali players, while former Indian cricketers have contributed to coaching and mentoring programs.

India has also provided infrastructural aid for stadium upgrades and youth cricket initiatives, particularly after Nepal’s qualification for the Asia Cup. 

The Indian Embassy in Kathmandu has supported several cricket exchange programs and sporting events aimed at strengthening grassroots participation.

When Nepal’s national cricket team made headlines during the Asia Cup and ICC qualifiers, Indian fans were among their loudest cheerleaders. 

This shared enthusiasm underscores how cricket is no longer just a sport—it is a bridge of friendship and shared pride between two nations.

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Partnership for the future

India’s economic assistance to Nepal has grown exponentially over the years. 

Through grant projects, concessional Lines of Credit worth USD 750 million, and post-earthquake reconstruction assistance of USD 1 billion, India’s contributions have touched nearly every aspect of Nepali life—from rebuilding schools and health centres to restoring cultural heritage sites.

The recent increase in the ceiling for High Impact Community Development Projects—from NRs 50 million to NRs 200 million—reflects India’s recognition of Nepal’s expanding development needs. 

India’s development model in Nepal is based on local ownership, ensuring that each project directly benefits communities and complements Nepal’s national priorities.

But perhaps the most remarkable aspect of this partnership lies in its human dimension. 

Whether it’s a Nepali farmer using an irrigation canal built with Indian assistance, a student studying in a newly constructed school, a tourist crossing the open border, or a cricketer training for international success—the India-Nepal friendship lives in everyday moments.

As India and Nepal stride forward together, their relationship continues to evolve beyond diplomacy—rooted instead in shared prosperity, mutual respect, and cultural kinship. 

With every bridge built, every classroom opened, every tourist welcomed, and every run scored, the two nations reaffirm an enduring truth: that progress, when shared, becomes a story of unity and hope.

Today, from the foothills of the Himalayas to the fields of Kathmandu, the India-Nepal partnership shines as a living testament to how neighbours can grow stronger together—transforming geography into destiny, and friendship into the foundation of a shared future.

India Nepal