Table of Contents
What is the Significance of Nepal for India?
- Economic Significance:
- Trade: Nepal shares a border with 5 Indian states. Hence an important point of trade and economic exchange.
- Energy security: India and Nepal share many transboundary Himalayan rivers with huge hydropower potential.
- Nepali exports: India has a good demand for Nepali exports like Pashmina textiles.
- Strategic Significance:
- Buffer state: Nepal acts as a buffer state against any possible aggression from China.
- Internal Security: Curbing cross-border infiltrations and drug trade with help of Nepal.
- Cultural Significance:
- Pilgrimage sites: Many Hindu and Buddhist religious sites are in Nepal making it an important pilgrim site for a large number of Indians.
- Common religion: 80 per cent Hindu population in both countries integrate the people.
- Diaspora: Nepali diaspora in India and Indian workforce in Nepal.

Areas of Cooperation between India and Nepal
Trade and Economy |
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Connectivity |
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Defence cooperation |
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Cultural cooperation |
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Energy cooperation |
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Assistance |
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Multilateral Partnership |
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Major Challenges in India Nepal Relations
