India imposes and sustains a permanent economic blockade of Nepal with the help of tariff and non-tariff barriers. Twenty percent of the cost of production in Nepal consists of freight costs, and India has deliberately sustained hurdles at ports, railways, roads, and customs offices at the borders to make Nepal’s exports and imports costlier. Subsequently, Nepalese goods become less competitive. India’s unfair treatment of Nepalese products is responsible for Nepal’s skyrocketing foreign trade deficit. Consequently, Nepal’s economy has been stagnating for a long time.
