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Perspective on Indo-Nepal Economic Cooperation

The Prime Minister of Nepal visited India last week. In this context we take a relook at the issue of Indo-Nepal economic cooperation.

Nepal, India's land locked neighbour is crucially dependent on India for its economic development. Over the years, through various trade treaties, the endeavour of both the countries has been in terms of ensuring industrialization of Nepal. However, this has not achieved the desired degree of success with the industries in Nepal facing a bleak future. While a part of the reasons behind this is related to Nepal's internal problems in terms of a volatile political situation, the major reason is that the Indo-Nepal trade treaties always provided transitory stimulus to Nepali industries instead of focusing on how to help Nepal in terms of achieving a sustainable growth trajectory. This article tries to argue for a new paradigm shift in Indo-Nepal economic cooperation.

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