Political Instability Clouds Nepal-India Trade Relations

Businesses fear disruptions in cross-border commerce amid unrest.

Political unrest and recent leadership changes in Nepal have raised concerns about potential disruptions to trade with India, the country’s largest trading partner. Businesses in both nations have expressed worry about administrative delays and instability affecting the flow of goods across major border points.

Trade experts note that Nepal’s reliance on India for fuel, food, and essential supplies makes uninterrupted commerce critical for economic stability. Any prolonged disruption could increase costs, create shortages, and put pressure on domestic markets.

Indian authorities are monitoring the situation closely, while Nepalese officials have assured traders that key border routes remain operational. However, economists argue that only political stability can guarantee long-term trade security and investor confidence.

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