The situation in Nepal is very critical at the moment. The army has taken the command in its hand and the political coup has made the atmosphere there tense. The airport of the capital Kathmandu has also been closed, causing all the flights in India. This situation has not only shocked Nepal but has also created many big difficulties for India. Prime Minister Narendra Modi has appealed to the people of Nepal to maintain peace and said that the stability and peace of Nepal is very important for India. But the question is, what will be the effect of this instability on Indian companies?
Deep economic connection between Nepal and India
Talking about the data, India exports goods worth about $ 7.33 billion annually to Nepal, while India is imported from Nepal to $ 0.87 billion. Overall, about 60-65 percent of Nepal’s trade comes from India. That is, there is a deep economic connection between Nepal and India. Due to this economic link, any unrest in Nepal directly affects India’s trade. And now as the situation in Nepal is deteriorating, its effect on business is also clear.
These Indian companies big investment in Nepal
The condition of many big Indian companies working in Nepal is also worried. Talking about Dabur, there is a lot of demand for his food products and Ayurvedic medicines in Nepal. Dabur also has manufacturing plants in Nepal, which are an important part of its business.
Similarly, ITC has a subsidiary company called Surya Nepal in Nepal, which also contributes significantly to the total earnings of the company. In FY 2025, ITC earned about Rs 3300 crore from Nepal, while its contribution to profit was Rs 726 crore.
Britannia has its own manufacturing unit in Nepal, while Varun Beverages’ Pepsij’s bottling unit is working in Nepal. Nepal contributes about 3 percent of this company’s consolidated income. Handarson also comes about 1 percent from Nepal in the profits of Handarson Unilivor (HUL). The impact of the ongoing crisis in Nepal on Indian companies Serious Can fall Due to this, they are expected to incur a loss of crores of rupees.