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“As India rises globally, Nepal has an opportunity to align with this growth through a partnership rooted in equality, mutual respect, and a shared vision for regional peace and prosperity.” Business Economics spoke with Jhakka Prasad Acharya, Consul General of Nepal in Kolkata, about Nepal’s development and its evolving relationship with India.

Q Nepal is a land of natural wonders, rich history, and vibrant culture. What steps are being taken by the government and tourism sector to ensure a memorable experience for travelers?

The Government of Nepal has adopted both national and international strategies to promote tourism. In colla-boration with the Nepal Tourism Board (NTB), the country is actively participating in major global travel fairs such as ATM Dubai (April 2025) and FITUR Madrid (January 2025), showcasing Nepal’s diverse tourism offerings.

At the domestic level, provincial “Tourism Year” campaigns have been launched to promote regional destinations.

For example, Pokhara Visit Year 2025 aims to attract 2 million tourists through curated travel packages featuring attractions like Phewa Lake, adventure sports, and cultural homestays. Similarly, Tourism Year 2025 in Koshi Province highlights natural sites like Tinjure Milke Jaljale, local festivals, trekking routes, and improved infrastructure, alongside cross-border initiatives.

Bilateral platforms like the India–Nepal Tourism Meet

promote shared tourism circuits — such as the Buddhist, Ramayana, and Mahakumbh pilgrimage routes — enhancing connectivity and cultural engagement. The NTB, in collaboration with UNDP, has also launched a Sustainable Tourism Project (2025–2028) focusing on upgrading trekking trails, digitizing services, and integrating agriculture, rural homestays, and regional fairs to create local employment.

Public and private sector investments are being directed toward infrastructure development, hospitality services, and tourism innovation — all contributing to an enhanced travel experience in Nepal.

Q. What investment opportunities does Nepal offer to promote socio-economic development?

A. Nepal presents a vibrant investment landscape driven by its liberal economic policies, strategic location, and longstanding ties with India.

The government has identified key sectors—tourism, hydropower, agriculture, manufacturing, and information technology—as priorities for foreign direct investment. Policies include generous tax holidays, customs exemptions, and liberal FDI provisions. Export-oriented businesses can enjoy tax breaks for up to 10 years, while Special Economic Zones (SEZs) offer full tax and duty waivers for 5–7 years.

Investors benefit from simplified procedures through one-stop service centers, reduced capital thresholds, and provisions for foreign ownership. Sectors such as tourism and IT receive additional incentives, and infrastructure projects are promoted under Public-Private Partnership (PPP) models.

The Investment Board of Nepal facilitates customized investment incentives, while Double Tax Avoidance Agreements (DTAAs) ease the repatriation of profits. These reforms reflect Nepal’s commitment to becoming an inclusive and attractive destination for sustainable investments.

Q. Nepal and India share deep-rooted historical ties. What should be the focus to further strengthen bilateral relations in today’s context?

A. Nepal–India relations are built on a foundation of shared history, culture, religion, and geography. These age-old ties, characterized by open borders and strong people-to-people connections, form the basis of a unique and enduring partnership.

Religious and cultural bonds—such as those represented by the Ramayana and the legacy of Gautam Buddha, born in Nepal and revered across India—have historically deepened the relationship. Over time, these connections evolved into formal diplomatic ties, beginning with the 1950 Treaty of Peace and Friendship.

India is currently Nepal’s largest trading partner, primary investor, and a key development ally. Projects like the Jayanagar–Bardibas railway, cross-border roadways, and electricity trade agreements are prime examples of growing cooperation. India has supported over 500 development projects in Nepal and provides thousands of scholarships to Nepali students every year.

Nevertheless, challenges persist, including trade imbalances, border-related sensitivities, and perceptions of asymmetry. Strengthening the relationship requires open, respectful dialogue and robust institutional mechanisms.

Future collaboration should emphasize enhanced connec-tivity—physical, digital, and economic—while focusing on priority areas like hydropower, climate resilience, and tourism. Engaging youth in education, innovation, and cultural exchange will also be crucial for building long-term understanding and trust.

As India rises on the global stage, Nepal has the opportunity to align itself through a balanced partnership based on equality, mutual respect, and a shared commitment to regional peace and prosperity.

Q. In recent years, many Nepali students have been choo-sing Bangladesh over India for higher education, especially in medicine. What are the reasons behind this trend?

A. India has traditionally been a favored destination for Nepali students due to its academic excellence, geographical proximity, and cultural familiarity. However, Bangladesh has increasingly gained popularity, particularly for medical studies, due to several practical advantages.

One major factor is the simplified admission process. Many Bangladeshi medical colleges offer direct entry to Nepali students under SAARC or foreign quotas without requiring entrance examinations, making it more accessible.

Affordability also plays a significant role. While Indian government colleges remain cost-effective, the limited seats for foreign students often push applicants toward expensive private institutions. In comparison, medical education in Bangladesh is generally more affordable, making it a feasible option for many middle-income families.

Other contributing factors include English-medium ins-truction, cultural similarities, and early clinical exposure in high-volume government hospitals. The curriculum is aligned with WHO standards, ensuring global recognition and regional relevance.

That said, the Government of India continues to support  Nepali students through scholarships and streamlined admissions into reputable institutions across various fields. These initiatives remain important in maintaining India’s appeal as an education destination.