Assessing the bilateral economic relations of Nepal and India: It's role in nepalese economy

Abstract

Nepal and India are the nearest neighborhood countries and India is also the biggest development partner of Nepal. Both countries have been enjoying excellent bilateral relations in political, economic, trade and tourism as well as culture and India has been extending economic and technical support to Nepal after 1951.Both countries respect the spirit of real friendship and mutual support. Two countries have enjoyed and fruitful bilateral relations characterized by amity and goodwill, equally and harmony and mutual support and cooperation. They pursuit of social and economic development by exchanging cooperation in trade, tourism, investment and connectivity, building human capital and infrastructure and deepening people to people relations is at the center of Nepal-India bilateral relations. This paper has been conducted to examine the economic impact of bilateral economic relations of Nepal and India. The economic impact of bilateral economic relations of Nepal and India has been analyzed in terms of Indian economic assistance, FDI inflows of Nepal from India, trade of Nepal with India and tourist arrivals from India. Descriptive and analytical research design has been applied to analysis the data by using simple statistical tools by using natural log. The results show that there have been positive influences on Nepalese economy with bilateral economic relations of India.