29th August 2025, Kathmandu
The “India-Nepal Economic Partnership Summit 2025,” organized by the PHDCCI India-Nepal Centre and its partners, was held in Birgunj to accelerate bilateral economic cooperation.
India Nepal Economic Partnership
The event aimed to pave the way for shared prosperity between the two nations. The summit, held on August 27, brought together a significant presence of industry leaders, policymakers, and trade body representatives from both nations, including key chambers from the neighboring Indian state of Bihar.
The event served as a crucial platform for dialogue, reinforcing the deep-rooted historical, cultural, and economic connections that bind India and Nepal.
As Chief Guest and Keynote Speaker, Devi Sahai Meena, Consul General of India in Birgunj, underscored the remarkable progress India has made across various economic sectors.
He emphasized that Nepali businesses stand to benefit immensely by forging strategic partnerships with Indian enterprises, particularly in bordering states. This collaborative approach, he noted, is a vital step toward improving the overall “Ease of Doing Business” between the two friendly nations.
A Look at the Transformative Progress
Atul K. Thakur, Secretary of the India-Nepal Centre at PHDCCI, provided a comprehensive overview of the substantial progress made in key areas of bilateral cooperation.
He highlighted the significant advancements in physical, digital, and energy connectivity, as well as people-to-people linkages. This progress is evident in a number of ongoing and completed infrastructure projects:
Physical Connectivity: The successful completion of the Integrated Check Post (ICP) at the Raxaul–Birgunj border has streamlined trade logistics, with similar progress being made on ICPs in Nepalgunj, Bhairahawa, and Dodhara-Chandani.
The inauguration of a freight train service and the development of new railway lines, such as the Kurtha–Bijalpura and the proposed Raxaul–Kathmandu routes, are further bolstering cross-border transport.
Energy Infrastructure: The expansion of the Motihari–Amlekhgunj petroleum pipeline and the construction of new pipelines from Siliguri to Jhapa and Amlekhgunj to Chitwan demonstrate a deepening energy infrastructure cooperation.
In the power sector, the finalization of the Long-Term Power Trade Agreement and a trilateral power trade arrangement between India, Nepal, and Bangladesh were cited as key milestones. Indian-led hydropower projects in Nepal, including the 480 MW Phukot Karnali and the 669 MW Lower Arun, are set to significantly boost Nepal’s energy capacity and export potential.
Digital Connectivity: A major highlight in the digital space is the interoperability of Nepal’s FonePay QR with India’s Unified Payments Interface (UPI) since March 2024. This development, which allows for seamless cross-border digital payments, marks a new era in financial technology collaboration.
The ongoing coordination between the National Payments Corporation of India (NPCI) and Nepal Clearing House Limited (NCHL) is expected to further ease these transactions, benefiting trade and tourism.
A Vision for a Data-Driven and Diversified Partnership
Dr. Sohan Prasad Sah, Vice Chairman of the Madhesh Province Policy and Planning Commission, stressed that India’s serious consideration of Nepal’s investment aspirations is crucial for a real economic turnaround.
He affirmed the Madhesh government’s commitment to improving economic outcomes in vital sectors like tourism, food processing, and renewable energy. Dr. Sah also highlighted a data-centric approach to policymaking, which will support informed decision-making to boost cross-border trade.
Abhishek Choudhary, President of the NICCI Birgunj Chapter, echoed this sentiment, emphasizing that the economic interdependence of the two nations means that growth in one directly benefits the other.
He urged both countries to look beyond traditional trade balances and focus on creating “win-win opportunities” in diverse sectors, including manufacturing, agriculture, tourism, energy, and digital trade.
The India-Nepal Economic Partnership Summit 2025 concluded with a shared vision for a future defined by robust connectivity, diversified economic engagement, and a commitment to leveraging technology for mutual benefit.
By addressing critical issues and accelerating the implementation of key projects, India and Nepal are not just enhancing their economic relationship but are also laying the groundwork for a more prosperous and integrated South Asia.
For more: India Nepal Economic Partnership