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Nepal’s landlocked position between India and China, two of the world’s fastest-growing economies, presents both challenges and opportunities. On one hand, Nepal’s dependence on external gateways for international trade increases shipping costs, extends delivery times, and exposes exporters to monopolistic practices by shipping lines and intermediaries at transit or transshipment ports. These inefficiencies, coupled with risks of fraud in the supply chain, have reduced Nepal’s competitiveness in the global market.

Logistics costs in Nepal are estimated to account for about 25–30 percent of the total value of products, factoring in documentation time, bank and customs procedures, and transit delays. This high cost base hinders exports and slows industrial growth.

Yet, Nepal also holds distinct advantages. Its strategic location at the crossroads of South and East Asia, the potential to expand its manufacturing base, and a strong private sector active in freight forwarding for exports all position the country for growth. However, import handling, customs brokerage, warehousing, and distribution services remain underdeveloped.

In the absence of an integrated Industrial and Logistics Master Plan (ILMP), Nepal has been unable to fully leverage these strengths. The ILMP seeks to bridge this gap by integrating trade facilitation, industrial development, and logistics modernization into a unified national strategy. It recognizes logistics as the fourth pillar of competitiveness—alongside policy, infrastructure, and skills—and envisions transforming logistics into a sector that drives industrial diversification, export growth, and regional integration.

Why industrial–logistics synergy matters

For a landlocked economy like Nepal, efficient logistics are crucial for reducing trade costs, improving reliability, and connecting businesses to regional and global value chains. Fragmented logistics systems impose high transaction costs, cause unpredictable delivery schedules, and undermine confidence in international trade.

Integrating industrial and logistics planning means ensuring that dry ports, ICDs, logistics parks, cold chains, and customs points are physically and operationally linked to industrial zones, SEZs, and trade corridors. It also requires aligning industrial investment policies with those promoting logistics service providers (LSPs), enabling both sectors to grow in tandem and attract greater foreign direct investment (FDI).

Nepal’s logistics and industrial ecosystem

Over the past decade, Nepal’s logistics landscape has evolved significantly. The country now has dry ports and inland container depots (ICDs) in Birgunj, Bhairahawa, Nepalgunj, Biratnagar, Chobhar, and Tatopani, among others. The private sector, especially members of the Nepal Freight Forwarders Association (NEFFA), has played a key role in linking customs operations, transportation, and storage along major supply chains.

Despite these gains, challenges persist: limited multimodal connectivity, long border wait times, a complex policy environment, inadequate infrastructure for cold chain and e-commerce logistics, and limited adoption of digital systems for supply chain management and risk mitigation.

The ILMP aims to address these issues by ensuring that logistics are treated not as an afterthought but as a core component of industrial policy, fostering closer coordination between production hubs and logistics nodes.

Regional context: Corridors for connectivity

Nepal’s unique location between India and China makes it an ideal candidate to evolve from a landlocked to a land-linked nation, a vital transit bridge in South and East Asia. The South Corridor (India–Nepal) remains Nepal’s primary trade route through Indian ports, while the North Corridor (China–Nepal) and the East–West domestic corridor present new opportunities for balanced industrial growth and regional integration.

However, high costs, lengthy procedures, and repetitive documentation requirements across borders continue to constrain trade. Strengthening regional connectivity therefore requires proactive diplomatic and technical negotiations with transit countries—supported by a robust logistics master plan that builds confidence among neighbors to use Nepal’s territory as a transit or transshipment route.

Responding to global megatrends

Global supply chains are being reshaped by three major forces: digitalization, decarbonization, and resilience. To stay competitive, Nepal must embrace these trends by developing digital trade systems, promoting green logistics infrastructure, and building resilient, shock-absorbing supply chains that can adapt to global disruptions.

Vision for the future

Nepal’s vision should be to transform itself from a landlocked country into a land-linked, competitive, and sustainable industrial and logistics hub connecting South and East Asia. This vision centers on empowering small and medium enterprises (SMEs), integrating into global supply chains, and boosting national competitiveness.

Strategic priorities include: developing industrial-logistics corridors; strengthening private sector participation; accelerating digitalization; ensuring environmental sustainability, and building human capital to drive logistics innovation

The way forward

Freight forwarders and logistics service providers identify five key strategies outlined in the ILMP to realize this transformation: integrated planning, infrastructure modernization, policy coherence, governance and skills development, and regional integration

The Industrial and Logistics Master Plan (ILMP) is more than a blueprint for infrastructure; it is a roadmap for Nepal’s transformation. By positioning logistics as a catalyst for competitiveness, openness, and resilience, the ILMP represents a shared vision between policymakers and freight forwarders to turn Nepal’s geography from a constraint into an advantage. It marks a strategic shift from being landlocked to becoming land-linked, unlocking Nepal’s potential as a dynamic connector between the world’s fastest-growing regions.

The government has made it clear that Nepal Electricity Authority (NEA) will also benefit from the cross-border transmission line to be built between Nepal and India.

An agreement has already been signed between Nepal and India to jointly construct two additional 400 KV cross-border transmission lines—Inaruwa-Poornia and Dododhara-Bareilly.

For this, a joint venture company is to be established between Nepal Electricity Authority and Power Grid Corporation of India Limited. 

According to the agreement, NEA's share in the joint venture company will be 51 percent in the section to be built in Nepal, shared Sandeep Kumar Dev, Joint-Secretary at the Ministry of Energy, Water Resources and Irrigation.

Similarly, the NEA will have a 49 percent stake in the transmission line to be built in the Indian section.

The ministry has said that the construction of trans-country transmission lines has been given priority to ensure a market for the electricity generated from the power projects for which power purchase agreements have been concluded.

Jubilant India held their nerve under the weight of huge expectation to beat South Africa by 52 runs and clinch a historic first Women's World Cup win, BBC reported.

The showpiece event in front of a raucous, sold-out 45,000 crowd was delayed by two hours because of rain but no overs were lost and a match for the ages played out in Navi Mumbai.

The hosts batted first and posted a competitive 298-7 - opener Shafali Verma led the charge with a dynamic 87 from 78 balls, backed up by Deepti Sharma's 58, which set the Proteas their record one-day international run-chase, according to BBC.

India and the US have signed a framework agreement to expand defence cooperation over the next 10-years, BBC reported.

The pact was announced after a meeting between US Defence Secretary Pete Hegseth and his Indian counterpart Rajnath Singh in Kuala Lumpur. 

The agreement will enhance "coordination, information sharing and tech cooperation" and advance "regional stability and deterrence", Hegseth said on X. 

It comes as the two countries are trying to close a trade deal and tide over tense ties after US President Donald Trump slapped 50% tariffs on India, including a 25% penalty for buying Russian oil and arms, according to BBC.

A joint Nepal-India Chhath ghat has been constructed along the Bigahi River located on the border of Mahottari and Dhanusha.

An attractive ghat, about two kilometres long, has been constructed on the bank of the Bigahi River, for convenience of the devotees observing the Chhath festival on October 27.

Matihani Municipality Mayor Hari Prasad Mandal said that the Chhath ghat has been constructed for the residents of Wards 6, 7, and 8 of Matihani Municipality in Nepal, Tulasiyahi of Mukhiyapatti Musaharnia Rural Municipality–3 in Dhanusha, and for the locals in Madhawapur and Rampur areas in India.

He stated that although they live in separate countries, citizens of Nepal and India have been constructing a common Chhath ghat as they practice shared religion, culture, festivals, marital traditions and joys and sorrows.

"The no-man's land has separated our two countries, but our costumes, language, culture and festivals are the same. There is a culture of celebrating cultural festivals together, and this ghat is an example of that," said Mayor Mandal.

Citizens from Matihani and Tulasiyahi in Nepal and Madhawapur and Rampur in India have come together to decorate this shared ghat between Nepal and India.

Jit Narayan Majhi, the Chairman of Matihani, Ward 7, said that more than two thousand devotees from both countries are expected to perform the Chhath Arghya rituals at this ghat and over ten thousand devotees will be present to observe the festival. 

During this festival, devoted to the worship of the Sun god and the goddess Shashti Devi (commonly called Chhathi Devi), the fasting devotees will offer 'arghya' to the setting sun on the evening of Kartik Shukla Shashthi which falls on October 27 and to the rising sun on the morning of Saptami on October 28, after bathing at this very ghat.

At least 12 people have died and several were injured after a bus they were travelling in caught fire following a collision with a motorcycle on a highway in Andhra Pradesh in southern India, reports say, BBC reported.

The motorcycle was trapped under the bus, rupturing its fuel tank and triggering an explosion. The Bangalore-bound bus carrying about 40 passengers was engulfed in flames within minutes early on Friday.

Reports cited eyewitnesses saying they heard passengers screaming for help as locals rushed to pull out survivors. Some managed to escape through an emergency exit window, according to BBC.

India's foreign ministry has said it is "not aware" of a phone call in which US President Donald Trump claimed Indian Prime Minister Narendra Modi agreed to stop purchasing Russian oil, BBC reported.

On Wednesday, Trump said his Indian counterpart had "assured me today" that it would end Russian oil imports, a move the US has pushed for in a bid to increase economic pressure on the Kremlin to end the war in Ukraine.

But asked about the call on Thursday, an Indian government spokesman cast doubt on Trump's account, saying he was "not aware of any conversation between the two leaders" taking place the previous day, according to BBC.

Google's parent company Alphabet will invest $15bn (£11.29bn) to build an AI data hub in southern India's Andhra Pradesh state, BBC reported.

The facility, which will be set up in the port city of Visakhapatnam, will be part of Google's global network of AI centres spread across 12 countries.

"It's the largest AI hub that we are going to be investing in anywhere in the world, outside of the United States," Thomas Kurian, the CEO of Google Cloud, said at an event in the capital Delhi on Tuesday, adding that the investment will be spread over the next five years.

The announcement comes at a time when US President Donald Trump has been asking American companies to prioritise domestic investment, according to BBC.

Sir Keir Starmer has said the UK will not relax visa rules for India, speaking before he arrived in the country to tout the benefits of a recent trade agreement, BBC reported.

The prime minister is leading a delegation of more than 100 entrepreneurs, cultural leaders and university vice-chancellors, as he attempts to boost UK investment and improve sluggish economic growth.

Sir Keir said there were "massive opportunities" to improve trade and cultural ties with India.

But he said there were no plans to open up more visa routes to Indian workers or students, according to BBC.

An Indian lawyer has thrown a shoe at the country's Chief Justice BR Gavai after apparently being angered by remarks the judge made about Hinduism, BBC reported.

Rakesh Kishore launched his attack during Monday's court proceedings in Delhi in what is seen across India as a serious public insult and security breach.

Three lawyers present in the courtroom confirmed to the BBC that a shoe had been hurled at the judge, with one saying it "brushed against the chief justice and [another] justice... and fell behind them".

Mr Kishore was heard saying "India won't tolerate insult to Sanatan Dharma [Hinduism]", as he was led away from the courtroom by security officials. He was later suspended from practice, according to BBC.

The stage is set for the final of the ongoing Asia Cup 2025; Team India will be taking on arch-rivals Pakistan in the final of the tournament for the first time in 41 years. Led by Suryakumar Yadav, the Indian team has been unbeatable in the tournament so far, winning all of their five matches, India TV reported.

On the other hand, Pakistan made it to the final after defeating Bangladesh in the Super Four stage of the competition. Where India sits in first place in the Super Four standings, Pakistan closely follows in second with two wins and one loss in three matches.

It is worth noting that the only matches that the Men in Green have lost so far have been against India. The side lost the clash against India once in the group stage and once in the Super Four. The two will once again lock horns in the final of the Asia Cup for the first time in the tournament’s history. Notably, both India and have Pakistan have taken on each other five times in a multinational level tournament final with more than three teams, according to India TV.

The Indian government has said a new $100,000 (£74,000) fee for applicants seeking US skilled worker visas will have "humanitarian consequences". 

President Donald Trump on Friday ordered the new fee for H-1B visa applications, which is more than 60 times the amount currently charged, to go into effect on 21 September, BBC reported.

Workers from India receive by far the most skilled visas in the programme, at just more than 70% of those issued.

Some US tech companies reportedly advised employees with H-1B visas to stay in the US or, if they were out of the country, to try to return immediately. The White House then on Saturday clarified the fee will not apply to current visas or renewal applications.

As Indian bananas enter Nepal unchecked, bananas worth billions of rupees produced by Nepali farmers are rotting in the fields. Farmers say the situation has worsened after the government reduced import taxes on Indian bananas and failed to enforce plant quarantine regulations at border customs points.

Nepali bananas typically reach markets between July and November. But this season, farmers complain they cannot sell their produce. “Instead of supporting local farmers, the government has slashed taxes on Indian bananas and ignored quarantine checks, causing our harvest to rot in the fields,” said Dipendra Tharu, president of the Banana Producers and Traders Association in Kailali. The association has demanded a ban on Indian banana imports until November, stricter quarantine procedures, and priority for Nepali bananas.

Tharu said a memorandum has already been submitted to Sudurpaschim Province Chief Minister Kamal Bahadur Shah, urging a halt to banana imports through the Kailali and Kanchanpur customs offices.

Farmers warn of protests if the government does not intervene. “If Indian bananas are not stopped immediately, we will be forced to launch a phased protest,” said association chairperson Chaudhary. Meanwhile, farmer Kamal Rawat from Tikapur said bananas grown on seven bighas of land are rotting because wholesalers are unwilling to buy them at fair prices. “We’re being forced to sell bananas for Rs 10–15 a dozen, which doesn’t even cover production costs. We’re on the verge of collapse,” he said.

Tikapur bananas are usually supplied to markets in Dhangadhi, Mahendranagar, Nepalgunj, Surkhet, Dang, Butwal, and beyond. But this year, farmers like Rawat and Tekendra Dhami say buyers have vanished. “Last year, bananas sold for Rs 40–50 a dozen in the fields. This year they’re left to rot,” Dhami said. Farmers warn that if their demands are ignored by Sept 22, they will take to the streets.

Banana farmers across the country are preparing for a movement, saying their hard work and investment are being undermined by cheap Indian imports. The Nepal Banana Producers Federation Committee in Kathmandu has also issued a statement, demanding the government secure a market for Nepali bananas. Farmers from Kailali, Kanchanpur, Bardiya, Nawalparasi, and Chitwan have warned that unchecked imports are worsening the trade deficit and pushing local producers out of business.

Banana cultivation currently takes place in 69 districts of Nepal. According to the Ministry of Agriculture and Livestock, 383,285 tons of bananas are produced annually on 23,404 hectares of land, worth around Rs 15bn. Of this, bananas worth over Rs 2bn are produced in Kailali alone, said Santosh Upadhyay, associate professor of agricultural economics at Sudurpaschim University.

Globally, India is the largest banana producer, cultivating 866,000 hectares and producing more than 30m metric tons annually—26 percent of the world’s total. China, Brazil, and Indonesia follow, while Nepal ranks 11th, with 23,000 hectares under banana cultivation.

The families of four passengers who died on an Air India jet that crashed in June have filed a lawsuit in the US against planemaker Boeing and aircraft parts maker Honeywell, accusing the companies of negligence, BBC reported.

The lawsuit filed Tuesday, and seen by the BBC, said faulty fuel switches caused the accident and accused the companies of doing "nothing" despite being aware of the risks of the aircraft's design.

Air India Flight 171 bound for London Gatwick, a Boeing 787, crashed shortly after takeoff from Ahmedabad, killing 260 people.

Fuel switches have become a focus for investigators after a preliminary inquiry found that fuel to the engines was cut off moments after the plane left the ground, according to BBC.

Four Nepalis including three of the same family died in a jeep accident in Shimla, India on Monday.

The deceased have been identified as Rajesh Bista (37), Dilli Bahadur Shahi (47), Ekendra Shahi (37) and Laxmi Shahi (24) of Kumakh Rural Municipality-4 of Salyan.

The incident occurred while they were heading towards the workplace. All of them died on the spot, it has been learnt.

India’s Meteorological Department on Monday issued a red alert for very heavy to extremely heavy rainfall in Mumbai, as the city faced its second straight day of downpours.

The Colaba observatory recorded over 100 millimeters of rain between Sunday and Monday morning, leading to severe waterlogging and traffic disruptions, Xinhua reported.

Train services were also partially affected due to flooded tracks.