How Can Indian Entrepreneurs Leverage the Umpteen Opportunities Nepal Has to Offer

Is India at the forefront to tap the potential hidden in Nepal?

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Bind by the age-old connection of culture, history, religion and tradition, India and Nepal share close relations in all spheres. From political and social to cultural and economic, bilateral ties between the two nations are thick. While the open border between two nations acts as a unique facilitator for cross-border movement and trade, multiple treaties signed between the two has expanded their familiarity.


New partnership agreements in agriculture, rail expansion and trade cooperation have contributed to increase solidarity between India and Nepal. Moreover, the frequent high-level visits by the leaders of the two countries at different points of time have helped promote goodwill, trust, understanding and cooperation between the two countries.

The transformed stance of government in Nepal has further fostered its cordial relations with the neighbouring countries. Touted as a closed economy, the country is opening up to the world and India is the closest and oldest ally is at the forefront to tap the potential hidden in it. Here’s how Indian entrepreneurs can leverage the umpteen opportunities that Nepal has to offer:

Trade & Investment

India is Nepal’s largest trading partner. Yet to get over the aftershocks of horrific earthquakes from 2015, the Indian government has been substantially supporting Nepal’s reconstruction efforts but more so, the nation has contributed to providing transit facility to Nepal for the third country trade. While the landlocked country has escalating trade deficit with India, it has undergone major structural changes in the past years.

Among Nepal’s topmost export items to overseas countries are readymade garments, followed by woollen carpets and pashmina products. Other traditional export items include lentils, metal and wooden handicrafts whereas the new export items are new coffee, honey, terry towels, micro transformers, blankets and buttons.

Looking at India’s bettering scope of technology enhancement, there is huge production potential lying in the upcoming export items such as mushroom, saffron and floriculture products for the home-grown entrepreneurs. Leather goods, woollen goods, silver jewellery and silverware, gold jewellery, etc also offer good prospects besides the existing exportable items for Indians to trade in.

Water Resources

Considered as the backbone of the Nepali economy, water resources have always received due prominence in the agenda of bilateral cooperation between Nepal and India for a long time. With a view to optimizing the benefits and addressing the problems, both Governments have set up three-tier mechanisms to implement for addressing water induced problems of flood and inundation.

The government of India has been providing assistance to Nepal for strengthening and extension of embankments along Lalbakeya, Bagmati and Kamala rivers. The nation has been providing development assistance to Nepal, focusing on the creation of infrastructure at the grass-root level, under which various projects have been implemented in the areas of infrastructure, health, water resources, education and rural & community development. Indian entrepreneurs can cash on to the opportunity in these sectors well.

Aastha Singal

Written By

Entrepreneur Staff

A business journalist looking to find happiness in the world of startups, investments, MSMEs and more. Officially started her career as a news reporter for News World India, Aastha had short stints with NDTV and NewsX. A true optimist seeking to make a difference, she is a comic junkie who'd rather watch a typical Bollywood masala than a Hollywood blockbuster.