With the recent upheaval of violence in the neighboring nation, Ranjeet Kumar, a resident of Raxaul, India, considers himself lucky to receive business from Nepal.
The 50-year-old runs the last market in the area, just 800 meters (roughly 2, 600 feet) from the country’s border with Nepal, in Raxaul, in eastern India, which is home to a century-old religious shop.
Recommended Stories
list of 4 itemsend of list
In Hindu homes on both sides of the border, Kumar sells items like sacred thread and a ceremony fire pit. Since widespread anticorruption protests broke out in Nepal on September 8, sales have decreased across the border.
The Himalayan nation’s Gen Z led the protests, which resulted in 72 fatalities, including one for an Indian national, and more than 2, 000 injuries.
Residents close to the border could get permission to make quick shopping trips into India, helping to prevent Kumar’s business from being severely damaged, even though the border was closed for a week when violence broke out. He said, “They came and went back quickly.”
However, the majority of people have not had the same luck.
Arun Kumar Gupta, 55, a cloth trader in Raxaul, claimed his company was forced to shut down as a result of the violence, which made it difficult to raise money for his three employees.
According to Gupta, “Nepalese citizens make up over 90% of the businesses in the markets that border Nepal.”
The border between India and Nepal is roughly 1,750 kilometers long (1, 088 miles), and it passes through five Indian states, including Uttar Pradesh, Uttarakhand, Bihar, West Bengal, and Sikkim, which allow residents of both countries to cross freely across the open border without a passport.
Nepal’s biggest trading partner and main source of foreign investment is India. It also handles about one-third of Nepal’s services and two-thirds of its merchandise trade.
India delivers among other things petroleum products, chemical fertilizers, salt, sugar, rice, cars, copper, and cotton to Nepal. The smaller nation imports hydroelectric power, resin, yarn, and handmade items.
In 2024-2025, India and Nepal’s total trade totaled $ 8.5 billion, including imports of $1.2 billion and exports from India of $7.3 billion.
A major blow
After youth agitators ignited the government of Prime Minister KP Sharma Oli’s government, setting the parliament building and several politicians’ homes on fire. After the Gen-Z movement chose her for the position, Nepal’s president has since announced elections for March and appointed 73-year-old Sushila Karki, a former Supreme Court chief justice, as interim prime minister.
The violence has subsided since that point, and border crossing has resumed.
However, traders criticized how things are far from normal.
People are too afraid to return to normal spending habits as a result of the political turmoil. They worry that the violence might return, according to Suresh Kumar, owner of a ladies’ clothing store in Raxaul. They have only covered daily needs when shopping.
Despite the fact that Dashain, Nepal’s biggest festival, is taking place, traders are concerned about losing out. It will be observed from October 2 through October 15 this year.
The current circumstances, according to Raj Kumar Gupta, secretary of the trade body Raxaul Chamber of Commerce and Industries, will likely lower the volume of the grand celebrations, which will have a negative impact on our company.
He continued, “The markets typically start bustling with buyers 15-20 days before the festival,” but it is currently completely empty.
Even far-away cities that sell goods to shopkeepers in border areas are feeling the effects of the violence.
The main attraction of lac bangles, or lahati, as they are known locally, is Muzzaffarpur in Bihar, which is 140 kilometers (88 miles) from the Raxaul border.
Businesses in border areas in Nepal receive these bangles, which are made of lac resin in a range of colors and patterns, in large quantities.
Since we haven’t sent any supplies to the border areas since the violence started, Ehtashamul Haque, a bangle trader in Muzzaffarpur, said, “The impact is 100%.” We had increased our production and had anticipated sales for the upcoming Dashain festival in that city, but our plans have gotten significantly shaky. Our investment has been hampered by our stock holdings, and it will take a while before they are cleared.
The upcoming festival in Nepal is a major event that draws a lot of visitors, according to Shyam Sundar Bhimseria, president of the North Bihar Chamber of Commerce and Industry, but the current political unrest has undoubtedly had an impact on those who depend on the neighboring nation’s economy.
Due to the tension, it’s difficult to calculate the total loss, but it would have a significant impact on the businesses that are completely dependent on it.
Tourism was severely affected.
Due to the turmoil, Nepal’s tourism is suffering greatly. It is the nation’s largest industry, employs about 1.2 million foreigners annually, and contributes about 8% to its economy. However, industry insiders predict that pictures of hotels like the Kathmandu Hilton being looted and vandalized along with hundreds of travelers who are stranded when the international airport temporarily closes will spook away travelers.
“The season was just beginning, and the bookings were already at their peak, and the violence couldn’t have come at a worse time.” Nepal joined the list last year because of political tension in Bangladesh, and it was already affected by the cross-border travel, according to Debjit Dutta, president of the West Bengal chapter of the Indian Association of Tour Operators (IOT).
Dutta anticipates that the decline in travel activity will have an impact on both business and tourism in India, particularly Buddhist monks who visit the Gautam Buddha’s holy sites both in Nepal and India.
The damage has already been done, according to KP Singh, the founder of Uttar Pradesh’s travel company Pashupati Nath Tours and Travels.
Source: Aljazeera
Leave a Reply