Policy Update
Tuba Athar
Source: Nepal, India jointly inaugurate road link connecting Indo-Nepal border- The Week
Background
Nepal and India have deep cultural, social, and religious ties and have a unique and resilient connection. Tourism is a vital economic driver for both India and Nepal. According to the World Travel & Tourism Council (WTTC), tourism contributes over 9% to India’s GDP and provides employment to millions. Similarly, Nepal, with its stunning Himalayan landscapes and cultural heritage, depends heavily on tourism for economic development. The Nepal-India Chamber of Commerce and Industry (NICCI) was established in 1993 with a vision to facilitate discussion and interaction and to promote bilateral tourism between the countries.
It has helped identify key areas that need to be addressed in order to enhance bilateral tourism from overland travel, air travel, joint promotion and development of connecting religious circuits, and other policy gaps. This has been done by NICCI through facilitating a Joint Working Group in 2018 (JWG) between Nepal and India, and the necessary public-private stakeholders. One key area that has been identified is the development and promotion of knowledge products on the Spiritual/religious circuits of both countries. NICCI is hoping to bring together and promote 5 of the major religious circuits between Nepal and India: (1) Buddhist Circuit, (2) Mahabharata Circuit, (3) Ramayan Circuit, (4) Shiva Shakti Circuit, and (5) Sikh Circuit.
Five Religious Circuits
- Shiv Shakti Circuit
In Nepal, there are many Shakti Peeths related to God Shiva and also those related to Goddess Sati Devi (Dantakali, Guheyshwori, Nainadevi) and Goddess Durga. These Shakti Peeths are considered to be the foundation of the beliefs of the people in Nepal since ancient times, based on the practices, tantras, myths, and festivals that have been followed for thousands of years. While there are different accounts on the number of Shakti Peeths, the popular belief is that there are 54 such sites based on the belief that Sati Devi’s body parts had fallen in this particular region.
Famous Shiv Shakti circuit attractions in Nepal are Mukti Naath Shiv Peeth in Mustang and Pindeshwar Shiv Peeth in Sunsari. In India, the famous sites are Kedarnath Jyotirlinga and Vishwanath Jyotirlinga in Varanasi, Mahakaleshwar Jyotirlinga in Ujjain, and Mallikarjun Jyotirlinga in Srisailam, among many others.
- Mahabharata Circuit
In the course of understanding the general scope of the Mahabharata circuit, the broader concept of the cultural geography of both the Hindukush Himalaya and the Mahabharata range is also equally important. Nepal shares a central and significant part of the Hindukush Himalaya and holds the whole range of the Mahabharata. All four dhaamas of Nepal, namely Pashupatkshetra, Rurukshetra, Muktikshetra, and Barahakshetra, are either directly or indirectly linked with the stories of the Mahabharata.
Famous Mahabharata Circuit Attractions in Nepal are Pandav Gupha, Gandaki Valley civilisation, Shiv Dara, etc. In India, the famous attractions are Kurukshetra, Hastinapur, Varnasi, Magadha, Kosala, Avanti, Asmaka, etc.
- Ramayana Circuit
There are many religious and mythological stories and discoveries that link various pilgrimage sites of Nepal to the popular ‘Ramayana Circuit’ of India. All the places where Sri Ram travelled with Sita after Panchvati are part of his pilgrimage.
Famous Ramayana Circuit Attractions in Nepal are Kagbeni in Mustang, Ramadighat, Valmiki Ashram, Janakpur Dham, etc. The famous attractions in India are Ayodhya, Chitrakoot, Amarkantak, Panchavati, Kishkindha, Rameshwaram, and Adam’s Bridge.
- Buddhist circuit
There are numerous Buddhist pilgrimage sites scattered across Nepal, from the majestic Himalayas to the beautiful Terai. The four sacred places and the four places of miracles are together known as Atthamahathanani or the Eight Great Places. Pilgrimage to these eight shrines is known as ‘Dhamma yatra’ (Dhamma expedition) or a pilgrimage of piety.
Important Buddhist circuit attractions are Namo Buddha, Kapilavastu, Lumbini, Kushinagar, Vaishali, Rajgriha, Bodhgaya, Sarnath, Shravasthi, etc.
- Sikh Circuit
Both India and Nepal have sites sacred to Sikhism. The six important sites to Sikhism in Nepal are: Guru Nanak Matth, Balaju; Gyaneshwor Gyandhara; Shoba Bhagwati; Udasi Akhada; Kalmochan Thapathali; Bhasmeshwor Guru Nanak Matth; Pashupati Complex and Gurdwara Guru Nanak Satsang, Kupandole.
Famous circuit attractions in India are Gurudwara Pathar Sahib at Leh, Takht Sri Kesgar Sahib, Takht Sri Damdama Sahib, Takht Sri Harimandir Sahib, Gurudwara Motibagh Sahib, etc.
Functioning
The new pact, signed between the Indian Association of Tour Operators (IATO) and the Nepal Association of Tour & Travel Agents (NATTA) in 2025, marks the beginning of a more integrated and strategic partnership aimed at transforming the tourism landscape of both countries. The agreement was formalized during the Buddhist International Travel Mart (BITM 2025), with Mr. Ravi Gosain, President of IATO, and Mr. Kumar Mani Thapaliya, President of NATTA, officially signing the MoU in the presence of Honorable Mr. Badri Prasad Pandey, Minister of Tourism, Culture, and Civil Aviation of Nepal, and Mr. Deepak Raj Joshi, CEO of the Nepal Tourism Board.
By focusing on thematic tourism circuits such as the Ramayana Trail and Buddhist pilgrimage routes, this collaboration promises to offer global travellers a comprehensive and immersive journey into the spiritual and cultural heartlands of South Asia. For tourism professionals and travelers, the pact spells exciting times ahead with richer cultural narratives, enhanced connectivity, and mutually beneficial economic opportunities. The key pillars of the India-Nepal tourism pact include joint promotional activities, development of integrated tourism circuits, knowledge sharing and capacity building between the countries, improving connectivity, and facilities for travel. They also focus on developing sustainable and responsible tourism.
Performance and impact
For tourists and travel enthusiasts, the India-Nepal tourism pact promises tangible improvements and exciting new possibilities. For example, it aims to reduce visa formalities and provide a hassle-free experience. It also gives both countries the opportunity for richer and more diverse experiences, ranging from spiritual pilgrimages and cultural festivals to wildlife safaris and heritage walks. Moreover, it has provided an opportunity to both countries to upgrade transport and tourist facilities, additionally engaging the local community and traders in the process. Promoting an eco-friendly experience has given way to minimizing environmental impact as well as offering tourists responsible tourism choices.
According to the India Tourism Data Compendium (2025), Nepal secured 11th position in terms of foreign tourists’ arrival in India, which in 2019 was at 15th position, which shows a healthy increase. Moreover, according to the Ministry of Culture, Tourism, and Civil Aviation of Nepal, Indian tourists accounted for 27.7% of visitors to Nepal in 2024. Further, the pact is expected to boost bilateral tourist arrivals by making multi-destination travel more attractive and consequently generating higher revenue for hotels, restaurants, transport, and local artisans. The most important impact has been the strengthening of cultural diplomacy and people-to-people connections.
Challenges and Issues
1. There is poor transport integration linking pilgrimage towns. Moreover, there is weak last-mile connectivity, which produces infrastructural and connectivity challenges.
2. Lack of harmonised immigration and customs facilities creates visa and border management issues. While Indians and Nepalis travel visa-free, third-country pilgrims must navigate two different visa systems.
3. There are many agencies involved in both countries, where coordination is often weak. Moreover, India has more resources for marketing, infrastructure, and branding, while Nepal often lags, creating an imbalance and a huge institutional and coordination gap.
4. Over-commercialization risks damaging fragile heritage sites like Lumbini, Pashupatinath, or Janakpur temples, which have the potential to create an adverse impact on culture and heritage.
5. Border disputes (e.g., Kalapani, Lipulekh) and nationalist politics sometimes spill over into pilgrimage cooperation. Moreover, Nepal is sensitive to being overshadowed by India in joint projects, fearing loss of cultural ownership, giving way to political and diplomatic sensation.
Conclusion and way forward
While the pact is promising, several challenges must be addressed for its full potential to be realized. First of all, investment in infrastructure is needed. Coordination in border management is essential for cross-border movement. Marketing synergy and community engagement are critical for sustainable development and authentic experiences. By proactively engaging in these areas, India and Nepal can set a benchmark for successful regional tourism cooperation.
References
1. Travel and Tour World. (2025, May 25). India and Nepal Sign Landmark Tourism Pact to Unlock Cross-Border Travel and Cultural Exchange, Here’s What Will Make You Thrilled – Travel And Tour World.
2. Online Bureau. (2025, May 24). Cross-border Tourism India Nepal: IATO and NATTA Unite to Enhance Cross-Border Tourism Between India and Nepal, ETTravelWorld.
3. Nepal-India Chamber of Commerce & Industry. Religious Circuit.
4. Khatapana. (2025, January 16). Nepal and India Team Up to Boost Cross-Border Religious Tourism | Khatapana | Khatapana.
5. B W Online Bureau (2025, May 24). India and Nepal join hands to boost Cross-Border tourism – BW Hotelier.
6. Travel World Online. (2025, May 24). IATO and NATTA Sign MoU to Boost Cross-Border Tourism Between India and Nepal – Travel World Directory.
7. Adhikari, CB. (2025, January 16). Nepal-India teaming up for promoting cross-border religious tourism – South Asia Time, accessed on September 28, 2025
8. Akter, O. (2025, July 4). Nepal Tourism Growth 2025: Indian Tourists Lead Surge – Nepal Monitor.
9. Ministry of Tourism, Government of India. (2025, September 27). India Tourism Data Compendium 2025. https://tourism.gov.in/sites/default/files/2025-09/India%20Tourism%20Data%20Compendium%202025_1.pdf
About the contributor- Tuba Athar is a research intern at IMPRI. She is pursuing a PhD from the Centre for the Study of Regional Development, Jawaharlal Nehru University, New Delhi.
Acknowledgement- The author sincerely thanks Aasthaba Jadeja and other IMPRI fellows for their valuable contribution.
Read more at IMPRI
