Nepal can reap benefits from India’s budget for tourism and trade: NC Chairman KC

लगानी न्यूज

१९ माघ २०८२, सोमबार १७:३०February 2, 2026

. Sunil KC, president of Nepal-India Chamber of Commerce and Industry (NIKKI), said that Nepal can benefit from various sectors due to the provisions made in the budget for the fiscal year 2026÷27 by the Government of India.

Speaking at an interaction organized by Society of Economic Journalists Nepal (SEJON) here today, KC said that Nepal’TAG_OPEN_div_30 s export industry would be more stable and expanded as the Indian government has set a target of seven per cent GDP growth in the budget. He said that the budget will have positive impact on production, employment and export earnings in Nepal.

In addition, India’s increase in public capital expenditure to Rs 12.2 trillion will improve infrastructure and logistics to make Nepal-India trade easier, cheaper and competitive.TAG_OPEN_div_28 He said that both countries could be benefited in health, tourism, AYUSH planning and education sectors.

“Production expansion and modernization of India are both opportunities and challenges for the country, and we believe that the provisions made in the budget will open the doors of opportunities for the supply of goods and human resources in Nepal,” he said.TAG_OPEN_div_26 According to him, the Indian government has not paid much attention to Nepal’s north-south connectivity although it has emphasized on East-West Corridor and coastal logistics in the budget.

Stating that India has increased development assistance to Nepal by one billion Indian rupees to eight billion Indian rupees through the budget, he said India’s ‘Neighbourhood First’ policy has been materialized.TAG_OPEN_div_24

Senior Chartered Accountant Sheshamani Dahal said that Nepal can benefit from the sectors like agriculture, tourism, cloud services and other sectors due to the provisions made in the budget of the Government of India.TAG_OPEN_div_22 “India has allocated Rs 1.63 lakh crore to the agriculture sector, focusing on technology and high-value crops. But if India reduces the fertilizer subsidy, the retail price of fertilizers may increase, and the prices of fertilizers such as urea, DAP that are imported informally by Nepali farmers may increase the cost of the farmers,” he said.

According to him, the development of technology in India’s agriculture can facilitate the availability of cheap seeds and modern agricultural equipment in Nepal.TAG_OPEN_div_20 He also believes that due to the huge subsidies and technology that Indian farmers receive, their products will be cheaper, which will put Nepali farmers at risk of not being able to compete with Indian products in their own market.

“The Indian government’s policy of making the digital customs process completely digital and paperless within two years will reduce border delays and provide relief to both Nepali importers and exporters,” Dahal said.TAG_OPEN_div_18 “India has announced seven new high-speed rail corridors through the budget which will ease logistics in the trade hubs bordering Nepal,” he said.

Similarly, Dahal believes that India’s emphasis on safe harbor software development and research in information technology could pose a challenge to Nepal’s market.TAG_OPEN_div_16 He said that India’s announcement of income tax exemption till 2047 for foreign companies providing global cloud services through data centers in India will increase the risk of an exodus of skilled manpower from Nepal.