New Delhi, Dec 7 (NationPress) India and Nepal are significantly enhancing their economic collaboration with a surge in cooperation across trade, tourism, infrastructural connectivity, and energy, as reported by Nepalese media outlets.

Tourism serves as a crucial sector, with both nations boasting a rich cultural heritage and breathtaking landscapes, making them appealing travel destinations for one another and globally. Consequently, the governments are prioritizing the development of tourism on a large scale, including in less conventional areas, as noted in an article from the Nepal Aaja digital news portal.

In November 2025, the two countries revised the Treaty of Transit, a bilateral agreement aimed at improving cross-border connectivity and trade, to streamline the transportation of rail-based freight between Jogbani in India and Biratnagar in Nepal, including bulk cargo. This liberalization will cover essential transit corridors, thereby enhancing multimodal trade connectivity between the two nations and facilitating Nepal’s trade with third-party countries. Such initiatives work to further solidify economic and commercial ties between the two countries, the article emphasized.

India and Nepal are also crafting new chapters of bilateral energy cooperation focused on boosting regional connectivity and promoting sustainable energy development. Advancing their commitment to clean energy, New Delhi and Kathmandu achieved a landmark with the Indian Oil Corporation Ltd. (IOCL) exporting Liquefied Natural Gas (LNG) to Nepal. This transition was made possible by the establishment of cryogenic storage and regasification facilities in Simara, Nepal. This initiative underscores the synergies in promoting sustainability and efficiency through the development of a feasible industrial energy alternative, as stated in the article.

Moreover, the much-lauded Arun-3 Hydroelectric Project, developed by SJVN Limited, an Indian public sector company, is harnessing Nepal’s vast water resources and hydropower potential, catering to India's growing energy demands. This 900 MW run-of-the-river hydropower project symbolizes the strong India-Nepal partnership within the hydropower sector, offering multiple benefits such as free electricity for Nepal, meeting India’s increasing energy requirements, and creating local economic opportunities. Nepal is expected to benefit from energy royalties, alongside rural electrification and infrastructure improvements. Thus, in this economic symbiosis, India offers a dynamic market for Nepal’s extensive hydropower resources.

On the financial development front, progressive strides have been made with the introduction of interoperability between UPI (Unified Payments Interface) and FonePay QR in Nepal. Even during the Covid-19 pandemic, when global borders remained closed, India-Nepal trade routes stayed open and robust, exemplifying resilient economic connections.

The mutually advantageous bilateral economic relations are paving the way for a shared economic future for both nations, which share deep-rooted civilizational ties and a collective history, the article concluded.