Over the past seven decades, the India-Nepal development cooperation has not only expanded but also diversified to cover a wide range of sectors that include health, education, power, archives, archeology, connectivity, trade, agriculture, cultural heritage preservation, capacity building, etc. Projects under the bilateral development partnership implemented are based on the needs and priorities of Nepal and are spread across the length and breadth of the country. India-Nepal Cooperation for development of modern infrastructure in Nepal began in 1951 with the construction of Gauchar Airport in Kathmandu (completed in 1954). The Indian Aid Mission in Nepal was also set up in 1954 for coordinating various developmental projects of the Government of India in areas of connectivity, health, education, power, etc. Since then this interaction has emerged as one of the strongest pillars of the bilateral partnership. 

(a) Large and Intermediate Infrastructure Projects - Grant

Some key projects undertaken in the initial years included the construction of Tribhuvan Rajmarg, construction of East-West Highway (Mahendra Raj Marg), development of Tribhuvan University and some of its affiliates, Kathmandu Water Supply Project and National Archives Building, construction of airports at Janakpur, Bhairahawa and Biratnagar, construction of the Institute of Forestry in Hetauda, apart from several projects in the fields of irrigation, drinking water and hydropower.

Connectivity projects have been an important element of India-Nepal development partnership. An MoU for development of railway infrastructure at five border points was signed between the Government of India and the Government of Nepal in 2010. The cross-border section of the first railway link, connecting Jaynagar (India) to Kurtha (Nepal), became operational in April 2022. Train operations were jointly inaugurated by the Prime Ministers of both countries. In July 2023, this railway link was extended to Bijalpura in Nepal. The work on the final segment of the railway link, from Bijalpura to Bardibas, is ongoing. During this period, work was also initiated on the Jogbani (India) - Biratnagar (Nepal) rail link. Its cross-border section from Bathnaha (India) to the Nepal Custom Yard (Nepal) was jointly inaugurated by the Prime Ministers of both countries in June 2023 for freight rail operations. The Final Location Survey Report of the new Raxaul-Kathmandu railway link is also being discussed by both countries. 

An MoU for the development of Integrated Check Posts (ICPs) along the Indo-Nepal Border in Nepal was signed between the Government of India and the Government of Nepal in 2005. Under this MoU, there are four ICPs being constructed in Nepal with India’s grant assistance. Three of them, at Birgunj, Biratnagar, and Nepalgunj, were operationalized in 2018, 2020, and 2024, respectively. Prime Ministers of India and Nepal virtually inaugurated the ICP at Nepalgunj and conducted the ground-breaking ceremony of the ICP at Bhairahawa in June, 2023. An MoU between the Government of India and the Government of Nepal for the development of infrastructure at the Dodhara Chandani check post along India-Nepal border was also signed in 2023. Preparatory work on ICP Dodhara Chandani has already commenced.

In addition to Railways and ICPs, the Hulaki / Terai Roads project and the East – West fiber optics project are two other important projects undertaken in the realm of connectivity.

In the energy sector, development cooperation began with the Trishuli Hydropower project, Pokhara Hydropower project, Kataiya Power House and Devighat Hydroelectric project. In recent times, this cooperation has been expanded with the commissioning of the Motihari-Amlekhgunj Petroleum Pipeline (MAPL) in 2019. MAPL became the first cross-border petroleum product pipeline in South Asia region and has yielded economic benefits to the people of Nepal. For further enhancing energy cooperation through pipelines, an MoU for construction of petroleum supply infrastructure by laying a new pipeline between Siliguri and Jhapa, and extending the existing oil pipeline from Amlekhgunj till Chitwan, as well as construction of two greenfield terminals at Chitwan and Jhapa, was signed on 01 June 2023. The foundation stone for the Phase-II of the Motihari-Amlekhgunj Pipeline in Chitwan was also laid on the same day. The project has been completed and commercial operation has started. Indian Oil Corporation Limited (Indian Oil) and Nepal Oil Corporation (NOC) signed a Business to Business (B2B) Framework Agreement on 03 October 2024 for the execution of projects envisaged in the G2G MoU signed in 2023.

India-Nepal development partnership also encompasses cooperation in the health sector. One major health project was the setting up of a 50-seat medical college and a 350-bed hospital (B.P. Koirala Institute of Health Sciences) at Dharan. Other such include the setting up of the Nepal Bharat Maitri Emergency & Trauma Centre at Kathmandu (completed in 2008) and the construction of a 5-storey OPD cum Ward Block with facilities to accommodate 2,500 patients at Bir Hospital, Kathmandu (completed in 1985). The former is the first trauma centre with specialized facilities in Kathmandu. The ongoing health sector cooperation also includes supply of medical equipment. India provided 200 Kidney Dialysis Machines and 50 Reverse Osmosis (RO) systems to the Government of Nepal in 2023. The Bhabhatron II Radiotherapy Machine and its associated simulator were also handed over to Bhaktapur Cancer Hospital in 2024. In April, 2025, Government of India supplied medicines for the management of sickle cell anemia and thalassemia, worth USD 2 million, to the Government of Nepal.

Another facet of India-Nepal development partnership is the cooperation in the education sector. Some key education sector projects include the Nepal Bharat Maitri Vidalaya in Pokhara, the Manmohan Memorial Polytechnic in Morang, the development of Tri-Chand College in Kathmandu and various projects in Tribhuvan University (establishment of library, Gandhi Bhawan, girls and boys hostel). 

The construction of Pashupati Dharamshala in Kathmandu, the development of Patan Industrial Area in Lalitpur, the installation of over 3000 shallow tube wells in the Terai region of Nepal, the construction of a Museum Building in Lumbini, are some other important projects undertaken by India in Nepal. 

Additionally, a new National Police Academy is being constructed in Panauti, Kavrepalanchowk, through India’s grant assistance.

(b) High Impact Community Development Projects (HICDPs) – Grant

A significant facet of India-Nepal development partnership has been the High Impact Community Development Projects (HICDPs) Programme which was started in 2003. These projects are implemented at the grassroot level through local authorities in priority sectors of Government of Nepal including health, education, drinking water, sanitation & drainage, rural electrification, hydropower, embankment & river training, etc. The year 2023 marked the 20th anniversary of implementation of HICDPs in Nepal. Thus far, 598 projects costing a total of approximately NPR 1583 crore have been taken up all across Nepal. This includes 308 projects in the education sector of which 221 are school buildings. In January 2024, during the visit of Hon’ble External Affairs Minister of India to Nepal, a new agreement was concluded that increases the financial outlay of each project under this programme from NPR 5 crore to NPR 20 crore.

(c) Gifting of Ambulances, School Buses and Vehicles

In addition to gifting ambulances and school buses, the Government of India has been extending support in the form of vehicles, at the request of the Government of Nepal, for use in elections. To date, more than 3,000 vehicles have been gifted to various Nepali institutions to support elections, including the Nepal Police, Armed Police Force of Nepal, the Nepali Army, and the Election Commission of Nepal.

This includes the provision of about 650 vehicles, comprising SUVs, pickups, and trucks, as part of the assistance requested by the Government of Nepal for the House of Representatives elections held on 5 March 2026.

(d) Post-earthquake Reconstruction
Following the earthquake of 2015, the Government of India committed USD 1 billion, comprising USD 250 million as a grant and USD 750 million as a Line of Credit, for post-earthquake reconstruction in Nepal.

USD 150 million (USD 100 million as a grant and USD 50 million from the 4th Line of Credit) was allocated to the housing sector to support 50,000 housing beneficiaries in Gorkha and Nuwakot districts of Nepal. The construction of 50,000 houses has been completed, and the closing ceremony of the project was held in Kathmandu on 15 November 2021.

USD 50 million grant was allocated for the reconstruction of 70 schools and a Library in 8 districts of Nepal. All 71 projects have been completed and handed over. In addition, 14 additional schools are included under this initiative and relevant contracts have been awarded to respective contractors.

A Grant of USD 50 million was allocated for the reconstruction of 133 Health projects in 11 districts of Nepal. Out of these 133 health facilities, 125 health facilities have been completed and the remaining are at various stages of implementation.

A Grant of USD 50 million was allocated for the reconstruction of 30 cultural heritage projects in 8 districts of Nepal. Out of these, 17 projects have been completed and remaining are at various stages of implementation. 

Following the earthquake in Jajarkot on 03 November 2023, Government of India provided 5 tranches of immediate post-earthquake relief supply and announced a financial assistance package of USD 75 million to support Government of Nepal’s reconstruction efforts. The projects to be taken up under this financial assistance are under discussion. 

(e) Humanitarian Assistance and Disaster Relief
India has been the first international responder for Nepal during natural disasters. The Government of India carried out one of its largest overseas disaster relief operations, Operation Maitri, in the aftermath of the devastating earthquake that struck Nepal on 25 April 2015. Indian rescue and relief assistance reached Nepal within six hours of the earthquake. Indian military aircraft, helicopters, commercial flights, cargo trucks and trains carried relief material and rescue teams to Nepal. 16 Units of the National Disaster Response Force worked in coordination with Nepalese security agencies to help rescue victims and clear debris. Relief and rescue material supplied by India included food and water, medicines, medical aid teams, mobile field hospitals, blankets, tents, tarpaulins, engineering task forces and equipment, oxygen regenerator and cylinders, and other essential commodities and equipment.

During the COVID-19 pandemic, Government of India extended significant support to Nepal, including Intensive Care Unit (ICU) beds, ventilators, RT PCR kits, Personal Protective Equipment (PPE), ambulances, oxygen plants, vital medicines, vaccines, etc.

Following the earthquake in Jajarkot on 03 November 2023, Government of India provided five tranches of immediate post-earthquake relief supplies consisting of prefabricated houses, blankets, large-size tents and sleeping bags apart from essential medicines and medical equipment. Further, India announced a financial assistance package of USD 75 million to support Government of Nepal’s reconstruction efforts.

In response to the devastating landslides and floods that occurred across various parts of Nepal from 26-28 September 2024, Government of India provided over 25 tonnes of humanitarian aid, including essential hygiene supplies, medicines, life jackets, sleeping mats, food items, inflatable rubber boats, motors, tarpaulins, sleeping bags, blankets, chlorine tablets, and bottled water to support the affected families. In addition, at the request of the Government of Nepal, Government of India also extended support by providing 10 prefabricated steel bridges. These bridges with an overall value of more than NPR 41 crore were provided as a grant. 

Additionally, Government of India is committed to delivering a total of ten 70-meter and higher span bridges requested by the Government of Nepal after the devastating rains in October 2025, which affected eastern Nepal. The ten bailey bridges worth more than NPR 73 crores are being provided on grant basis by India. The first bridge was handed over to GoN on 20 November 2025.

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