Over the past decade, India-Nepal connectivity cooperation has undergone a quiet transformation. Developments in roads, railways, pipelines, and power have fostered a shift towards interdependence and sustainability. What we see unfolding today between the two neighbours represents more than just new infrastructure. This is a reflection of a maturing understanding of what functional, forward-looking ‘Neighbourhood First’ cooperation can and should look like.
Connectivity has become the defining theme of India-Nepal relations, and for good reason. Today, the two countries share an unprecedented level of cross-sectoral connectivity that has begun to redefine the open border not as a challenge, but as a continuous facilitator of economic and cultural exchange. Three Integrated Check Posts (ICPs) are fully operational, with three more at various stages of completion. The two countries are now linked by two railway lines, including the first-ever passenger rail link in their shared history. Hydropower connectivity has gained traction, marking an important shift towards making Nepal a net exporter of electricity to India.
South Asia’s first cross-border petroleum pipeline—from Motihari in India to Amlekhgunj in Nepal—is already functional, and phase II is underway. Two new pipeline projects are being planned between Siliguri-Jhapa and Amlekhgunj–Chitwan. Road infrastructure projects, too, have kept pace. Legacy projects like the Hulaki Rajmarg and Terai roads, long delayed, are now finally complete.
Behind this physical connectivity transformation lies a long-standing institutional framework. India and Nepal have about 40 institutional cooperation frameworks. Mechanisms like the India-Nepal Joint Commission on Security, the Inter-Governmental Committee on Trade and Transit, and regular customs cooperation meetings (including the 21st Director General-level talks held this April) have helped bridge policy gaps. Together, this multi-layered progress offers a model for India’s connectivity with its wider neighbourhood.
The next chapter: Infrastructure alone is not enough
Still, we are far from realising the full potential of this connectivity. Infrastructure, while necessary, is not sufficient. The next phase must focus on soft connectivity—regulatory coherence, trade facilitation, and inclusive policymaking that reflects both national and sub-national aspirations.
For instance, under the Treaty of Trade and Transit, inland container depots (ICDs) are not recognised as ports of entry or exit. Several ICDs in eastern and northern India could play an important role in managing container traffic for Nepal. Doing so would reduce the time and cost of trade, and also decongest sea ports like Kolkata that handle Nepal’s third-country cargo. Similarly, bureaucratic hurdles in the movement of people—such as the need for Nepali passenger vehicles to obtain permits from Kathmandu or Birgunj to enter India for an overnight visit—also need to be addressed, especially when Indian vehicles face no such restrictions.
