Nepal seeks economic advantage between India and China

Nepal aims to leverage its geographic position between India and China to drive economic growth, according to Foreign Minister Shisir Khanal. Speaking at an event in New York, Khanal stated that Nepal intends to treat its northern and southern corridors as complementary rather than competing, seeking to create value by linking to the markets of both neighbors, which collectively house nearly three billion people.

India remains a central component of this strategy. Khanal highlighted the 1,700-kilometer open border with five Indian states and noted that approximately two-thirds of Nepal’s trade is conducted with India. The minister also identified hydropower as a major growth sector, with plans to expand clean electricity generation for export to India and potentially onward to Bangladesh.

Regarding relations with China, Nepal is pursuing improved road connectivity across the Himalayas. Khanal described the current relationship with the Indian government as “Excellent” and noted that the focus remains on practical cooperation to manage regional dynamics and border issues.