With a history of age-old relationships in trade and commerce, India and Nepal’s relationship is characterized by open borders and deep-rooted cultural similarity. Enjoying excellent bilateral ties, these two countries are not just dependent on one another politically, and socially but also economically.
The firm foundation of the bilateral relationship has to be the country’s commitment to the principles of peaceful existence, sovereignty, and economic dependency. People of both countries enjoy free movement across borders for different purposes of life: education, employment, religious enlightenment, travel, tours, and many more.
Article 7 of the Treaty which states that nationals of one country in the territories of the other will be granted the same privileges in the matter of residence, ownership of property, and participation in trade and commerce has fueled the migration tendency of the Nepalese population to India and vice-versa.
The tendency of Nepalese to move to India for work purposes dates back to the time when Nepalese were recruited as ‘Gurkhas’ in the British Indian army after the Anglo-Nepal war of 1814-15. Today, the majority of Nepalese population move to different states of India for employment purposes more so to uplift the living standard of their families back home.
Presently, it is estimated that nearly 3 million Nepalese diasporas are working in different sectors in different states of India which indeed is a huge number and these diasporas send a major portion of their earnings back home to their families in order to meet their livelihood needs and improve their quality of life.
When it comes to employment type, these Nepalese diasporas are engaged in wide sectors ranging from Indian government officers to factory workers, restaurant owners, coal mine workers, and so on. Despite the fact that a small percentage of Nepalese workers work in government, and private offices, a large percentage of the same work in hospitality, construction, and mining industries even if it means that those workers are below their skills and capabilities.
However, one of the many reasons for India being one of the largest remittance-generating countries for Nepal has to be the huge number of Nepalese migrants moving across the border making Indo-Nepal remittance a vital factor for the economic growth of the country. In terms of data, during the year 2019-2020, almost 14.2% of the total remittance amount was received solely from India i.e. Rs. 43.16 billion. Furthermore, it was estimated that only 70% of the remittance amount was received through formal channels enclosing the fact that 30% of the same was received through informal channels which indeed has been a major challenge for Nepal.
The diversion of remittance from informal channels to formal channels holds huge importance for a country like Nepal whose GDP is significantly affected by the amount of remittance that flows into the country. With the ongoing pandemic situation, the impact on the remittance sector is still unpredictable which has left us with assumptions about the global economy.
About IME India:
IME India Private Limited is focused on delivering a world-class customer experience through various services ranging from hassle-free and easy foreign currency exchange, domestic remittance, and Indo- Nepal remittance from India to Nepal.
The Indo-Nepal Remittance facility provided by IME India Private Limited ensures quick and easy transmission of funds from the Indian territory to the Nepal corridor. Nepalese citizens after providing basic documents like ID Proof I.e. Citizenship, Passport, or Adhaar Card can walk into any of our partner branches, fulfill KYC requirements, and send the required amount of money instantly without any hassle.
You can easily send money from India to Nepal through IME India spread across India.