Nepal Gen Z Protests: Are India’s Exports & Imports at Risk?

Nepal is currently facing its worst youth protests, that has turned violent. The nationwide curfew enforced by the violent protests that erupted across the country led to the resignation of PM K.P. Sharma Oli. The protests were driven by public anger and political turmoil, and were not only disrupting Nepalese daily life but also having a big impact on India.

The unrest in Nepal is creating economic issues that are impacting international trade, tourism, and even medical travel because of the two countries' strong cultural, commercial, and travel ties.

Key Goods India Exports to Nepal

India sends many important goods to Nepal that the country relies on every day:

• Petroleum Products – fuels Nepal’s energy needs.
• Iron and Steel – used for building roads, bridges, and other infrastructure.
• Plastic Raw Materials – for factories and manufacturing industries.
• Agricultural Products – rice, vegetables, and spices.
• Pharmaceuticals – medicines for hospitals and clinics.
• Machinery and Equipment – including electrical and farm machinery.

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Major Imports from Nepal to India

India also buys several products from Nepal:

• Jute Products – ropes, mats, and other items.
• Zinc Sheets – used in industries.
• Textiles and Garments – Nepali clothing and fabrics.
• Fruits and Vegetables – like cardamom and citrus fruits.
• Handicrafts – traditional Nepali crafts popular in India.

Disruptions at the Border

The protests have caused serious problems at key border points like Kakarvitta-Panitanki near Siliguri. Roads are blocked, customs offices have been set on fire, and trucks carrying essential goods cannot pass. About 500 trucks every day, carrying food, construction materials, and other items, are now stuck.

Tourism has also fallen. In areas like Gorakhpur, bus travel to Nepal has dropped by 30–50% because of safety concerns. This has hurt local businesses that rely on tourists.

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Impact on Air Travel

Air travel has also been affected, Kathmandu’s Tribhuvan International Airport was temporarily closed. Flights from FlyDubai, IndiGo, and Thai Lion Air were diverted to Lucknow and Delhi, leaving passengers stranded. IndiGo has even stopped all flights to Nepal indefinitely.

Impact on India’s Economy

The unrest in Nepal affects India in many ways:

• Trade Delays – Blocked borders cause shortages and increase prices of essential goods.
• Tourism Loss – Fewer Indian tourists visiting Nepal means less income for hotels, travel agencies, and businesses.
• Higher Security Costs – India has to spend more on border security and personnel.

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Tourism & Medical Travel

Local hotels, hospitals, and travel agencies have seen a decline in income as a result of Indian tourists and patients cancelling trips for medical treatment to Nepal in locations like Gorakhpur and Maharajganj. 

Security Measures & Travel Advice

India has increased security along the border. The Ministry of External Affairs has advised Indians to postpone travel to Nepal and to be careful if already there.

The unrest in Nepal is affecting trade, travel, and economic stability between the two countries. Even though India and Nepal share strong cultural and business ties, it is clear that diplomatic efforts are needed to restore peace. Right now, it is important to make sure that people, goods, and services can move safely across the border.

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