India’s Development Assistance to Nepal

Government of India provides development assistance to Nepal, focusing on creation of infrastructure at the grass-root level, under which various projects have been implemented in the areas of infrastructure, health, water resources, education and rural & community development.

  • In recent years, India has been supporting projects in Nepal for development of infrastructure through upgradation of roads in the Terai areas; development of cross-border rail links at Jogbani–Biratnagar, Jaynagar-Bardibas, Nepalgunj Road-Nepalgunj, Nautanwa-Bhairhawa, and New Jalpaigudi-Kakarbhitta; and establishment of Integrated Check Posts at Raxaul-Birgunj, Sunauli Bhairhawa, Jogbani-Biratnagar, and Nepalgunj Road-Nepalgunj.
  • More than 551 large, intermediate and small–scale projects at an estimated cost of NRs. 76 Billion have been implemented across Nepal under Indian financial support since 1951. The total economic assistance earmarked under ‘Aid to Nepal’ budget for FY 2017-18 amounts to Rs. 375 crore.
  • During the FY 2017-18, a total of around 18 intermediate and large projects are under various stages of implementation in Nepal. These include creation of a Nepal Bharat Maitri Dharamshala at Pashupati area at Kathmandu; construction of a Polytechnic at Hetauda, providing Indian faculty support to BP Koirala Institute of Health Sciences at Dharan, Installation of 2700 shallow tube wells in various districts across Nepal, etc.

Gorkha Soldiers in the Indian Army

  • The Gorkha Regiments of the Indian Army are raised partly by recruitment from hill districts of Nepal.
  • Currently, about 32,000 Gorkha Soldiers from Nepal are serving in the Indian Army. During the year 2016-17, pensions in excess of INRs 2796.5 Crores (NRs 4474.4 Crores) were disbursed by the Indian Army to about 1,25,000 retired Gorkha Soldiers and civilian pensioners, who had served in the Indian Army and other Central & State Services.
  • Since 1950, India and Nepal have been awarding Army Chiefs of each other with the honorary rank of General in recognition of mutual harmonious relationship between two Armies.

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