India and Nepal Review Trade and Flood Recovery Ties

The Government of India and the Government of Nepal conducted a series of high-level diplomatic and technical meetings in New Delhi from September 16 to 18, 2026. The engagements focused on economic cooperation and India's commitment to supporting Nepal's recovery from August 26 flash floods, which caused over 1,400 deaths and an estimated $5 billion in damages.

Nepal's Finance Minister Swarnim Wagle met with Indian Finance Minister Nirmala Sitharaman and External Affairs Minister S. Jaishankar to discuss post-disaster reconstruction and energy connectivity. These talks occur as the ruling Rashtriya Swatantra Party seeks to reset bilateral ties following boundary disputes and disagreements over bi-directional flights to Pokhara and Gautam Buddha International airports. Prime Minister Balen Shah is expected to visit Delhi later this year after appealing for multilateral support at the UN General Assembly.

Simultaneously, the India-Nepal Inter-Governmental Sub-Committee (IGSC) met to review trade and transit. Discussions centered on market access for pharmaceuticals, medical devices, and agricultural products, alongside the digitalization of customs and the improvement of rail and road infrastructure. The delegations emphasized facilitating legitimate trade while strengthening mechanisms to prevent the misuse of preferential trade arrangements.