India’s growth will directly impact Nepal’s economy as the two countries share an open border policy. Small wonder that India’s Budget announcements are critically scrutinized even by several other countries, including New Delhi’s immediate neighbours.
“The impact of high growth in India will generally be positive, especially in terms of exporting Nepali goods to India,” myRepublica, the Nepalese news portal said. It added that a high growth rate in India will not only increase the demand for Nepali products, it would also increase the inflow of visiting from India to Nepal. Besides, Indian investments are also expected to go up. “There is no doubt that the local environment and policy should be conducive for such development, the news portal said.
While the Nepal Rastra Bank, the country’s central bank, has been conducting studies within the country “for office purposes” on the impact of the Indian budget, it should undertake similar studies on the “impact study in collaboration and consultation with the private sector and concerned stakeholders.”
“Suggestions, conclusions and steps to be taken are important. It should not be taken lightly,” it said.
Meanwhile, Finance Minister Nirmala Sitharaman has earmarked Rs 750 crore towards Nepal for new financial year beginning April.
The much-awaited transboundary Janakpur-Jayanagar Railway service, entirely funded by New Delhi, between India and Nepal is also finally expected to commence within this month.
Prime Minister Narendra Modi has reiterated the need to focus on the Neighbourhood First policy to ensure development in the region.
