This article covers India's development partnership with Nepal and cooperation in other sectors: connectivity projects, large grant projects, health, community development, earthquake reconstruction, disaster relief, lines of credit, and digital, startup and AI cooperation. It also covers education, scholarships and ITEC training, cultural cooperation and the Indian community in Nepal. It is based on the MEA brief of July 2026.

Scope of the partnership

According to the MEA brief of July 2026, India-Nepal development cooperation has, over the past seven decades, expanded and diversified. It covers health, education, power, archives, archaeology, connectivity, trade, agriculture, cultural heritage preservation and capacity building. The brief states that projects are based on the needs and priorities of Nepal and are spread across the length and breadth of the country.

Roads, fibre optics and railways

Physical connectivity initiatives delivered with Indian assistance include the Hulaki/Terai Roads project and the East-West fiber optics project. The extension of existing railway lines is among the initiatives nearing completion or at various stages of understanding or implementation, and both sides are discussing further enhancement of connectivity in the railways and roads sectors.

Large projects

The brief describes the construction of the National Police Academy of Nepal in Panauti, Kavrepalanchowk, through India's grant assistance, as a landmark initiative.

Health

Indian grant assistance helped establish institutes such as the B.P. Koirala Institute of Health Sciences at Dharan, the Nepal Bharat Maitri Emergency & Trauma Centre at Kathmandu, and the OPD & Ward Block at Bir Hospital in Kathmandu.

Supplies gifted to Nepal include Kidney Dialysis Machines, Reverse Osmosis (RO) systems, a Bhabhatron II Radiotherapy Machine and its associated simulator, and medicines for the management of sickle cell anemia and thalassemia.

High Impact Community Development Programme

For smaller projects at community level, Indian assistance is delivered through the High Impact Community Development Programme (HICDP), under which projects up to NPR 20 crores are funded by the Government of India. Projects are selected in coordination with the Government of Nepal and the local community.

These are mostly school buildings and health centres. Other areas include drinking water, sanitation and drainage, rural electrification, hydropower, and embankment and river training. As of the brief, 598 projects worth approximately NPR 1583 crore have been taken up across Nepal.

Earthquake reconstruction

Following the earthquake of 2015, the Government of India committed USD 1 billion for post-earthquake reconstruction in Nepal. The brief lists these activities under this initiative so far:

  • the construction of 50,000 houses, completed by 2021
  • the reconstruction of 70 schools and a Library
  • the reconstruction of 14 additional schools, included recently
  • the reconstruction of 125 health facilities, completed, with the remaining 8 at various stages of implementation
  • the reconstruction of 17 cultural projects, completed, with the remaining 13 at various stages of implementation

Following the earthquake in Jajarkot in 2023, the Government of India announced a financial assistance package of USD 75 million to support reconstruction. The projects to be taken up under this package are under discussion.

Disaster relief

The brief describes India as a reliable partner for Nepal in disaster relief, citing India's efforts under Operation Maitri in April 2025 and during the Covid pandemic. It records the following assistance:

  • five tranches of immediate relief after the Jajarkot earthquake
  • 25 tonnes of humanitarian aid and 10 prefabricated steel bridges as a grant, after the landslides and floods of September 2024
  • a total of ten 70-meter and higher span bridges in eastern Nepal on grant basis, which the Government of India is providing following heavy rains in October 2025

Vehicles and equipment

India has gifted more than 3,000 vehicles to various Nepali institutions to support elections. These include about 650 vehicles, comprising SUVs, pickups and trucks, for the House of Representatives elections held on 5 March 2026. India has also gifted a large number of ambulances and school buses to various stakeholders in Nepal.

Lines of credit

Since 2006, India has provided Lines of Credit worth US$ 750 million to Nepal. Projects funded by these LoCs include roads, transmission lines, hydropower projects, and housing and reconstruction. The 11th India-Nepal LOC Review Meeting took place in New Delhi on 4 December 2025.

Digital cooperation, startups and AI

The brief states that relations continue to strengthen in areas such as digital connectivity, startups, AI, information technology, renewable energy, agriculture, infrastructure development and tourism.

The India-Nepal Startup Partnership Network (IN-SPAN) is a fully funded bilateral programme that brings together emerging Nepali entrepreneurs and the Indian technology and startup ecosystem. It is delivered in collaboration with IIT Madras Pravartak Technologies Foundation, and aims to catalyse cross-border innovation, build investment linkages and create lasting entrepreneurial partnerships.

In June 2026, an MoU was signed between Digital India Bhashini and Kathmandu University for co-creating National Digital Infrastructure for a "Voice First" Language Translation platform. The brief presents it as reflecting progress in cooperation on the use of AI and the adoption of digital technologies.

Cultural cooperation

The brief describes cultural interaction as "one of the strongest pillars" of the bilateral partnership, characterised by shared heritage, similarity of traditions, and deep connections in areas such as music, films, literature, dance and festivals.

Activities under cultural cooperation listed in the brief include:

  • cultural events, including seminars and workshops
  • visits by dance and music troupes
  • scholarships for arts courses
  • celebration of the International Day of Yoga and the International Wellness Day
  • familiarisation visits
  • support for festivals and events related to literature and films
  • ICCR Chairs at the Lumbini Buddhist University (for Buddhist studies) and Indian studies Chairs at Kathmandu and Tribhuvan Universities
  • activities of the Swami Vivekanand Cultural Centre of the Embassy of India, the Nepal-Bharat Library and the B.P. Koirala India-Nepal Foundation

The brief adds that sports, particularly cricket, are a rapidly developing area of collaboration between India and Nepal.

Education and scholarships

The brief refers to a rich tradition of cooperation and exchanges in education and capacity building, with deep connections between Indian institutes and their counterparts and regular exchanges between students and academia.

About 1500 scholarships are provided annually to Nepali nationals by the Government of India. They cover diverse areas such as engineering, medicine, agriculture, pharmacology, food technology, computer application, business administration, music and fine arts.

ITEC training

Under the Indian Technical and Economic Cooperation (ITEC) Programme, Nepali professionals and officials are provided capacity building courses in India through grant assistance. Since 2001, more than 3,700 professionals, officials and defence personnel from Nepal have used ITEC courses. Customised courses are also provided in specific domains.

The Indian community in Nepal

The brief describes the Indian diaspora in Nepal as a "living bridge" that has helped enhance friendship and goodwill between the two countries. It includes Indian nationals residing in Nepal as well as people of Indian origin who have settled in the country over generations.

The diaspora is mainly concentrated around the Kathmandu Valley and in other major commercial centres such as Birgunj, Biratnagar, Bhairahawa, Nepalgunj, Pokhara and Janakpur. Its members are engaged in trade, banking, manufacturing, IT, healthcare, education, hospitality, tourism and construction.

The community also includes Indian students pursuing higher education in Nepal, particularly in medicine and dentistry. The brief gives no figure for the size of the Indian community.