Raksauru, India – Ranjit Kumar thinks he is fortunate to get business from Nepal with something like recent violence in his neighbouring country.
The 50-year-old runs a store of religious items from a century ago in Raksar, Bihar in eastern India, and is the region’s last market, just 800 meters (about 2,600 feet) across the border with Nepal.
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Kumar sells items used during daily prayers in Hindu homes on both sides of the border, like sacred threads and fire holes for rituals. However, since the massive anti-corruption protests broke out in Nepal on September 8th, sales have fallen across the border.
The country’s Z-led protest left 72 deaths, including Indian citizens, and more than 2,000 people were injured in the Himalayan state.
The border was closed for a week when violence broke out, but residents near the border were able to get permission to do a quick shopping run in India, keeping Kumar’s business from being hit deeply. “They came back soon,” he said.
But most others were not lucky.
Arun Kumar Gupta, 55, a cloth trader at Raxaul, told Al Jazeera that his business was stopped during the violence, making it difficult to fund the salaries of three employees.
“Over 90% of businesses in Nepal and adjacent markets rely on Nepal citizens,” Gupta said.
India shares a porous boundary with Nepal, approximately 1,750 km (1,088 miles) long. It passes through five states: Uttar Pradesh, Uttarakhand, Bihar, West Bengal and Sikkim.
India is Nepal’s largest trading partner and the largest source of foreign investment. It also accounts for about two-thirds of Nepal’s commodity trade and one-third of services.
India sends petroleum products, chemical fertilizers, salt, sugar, rice, vehicles, copper and cotton to Nepal, among several other items. We import hydroelectric power generation, resin, yarn and handicrafts from small countries.
Total trade between India and Nepal was $8.5 billion between 2024 and 25. This included exports from India worth $7.3 billion and imports of approximately $1.2 billion over the period.
Big blow
The protest in Nepal forced the government of KP Sharma Oli after young agitators burned the parliamentary building and the home of several politicians. The Nepal president appointed Sushila Karki, 73, the former Chief Justice of the Supreme Court, as interim prime minister, after the Gen-Z movement chose her for the role.
Since then, violence has eased and cross-border movements have resumed.
But while the business goes back, traders complained.
“Political turmoil has made people too scared to spend their money. They are worried that violence could explode again,” said Suresh Kumar, who runs a women’swear store in Raksauru. “They limit shopping to daily requirements.”
Dasine, Nepal’s biggest festival, is approaching, but traders are afraid to stare at serious losses. This year, it will be celebrated from October 2nd to October 15th.
“People generally come here and come here to buy new clothes and other items during festivals, but the current situation certainly reduces the size of the grand celebration.
“The market is usually beginning to get bustling with buyers about 15-20 days before the festival, but up until now it’s completely vacant,” he added.
The effects of violence are even felt in far-reaching cities that supply store owners in border areas.
About 140km (88 miles) from the Raxaul border, Muzzaffarpur in Bihar is a hub of Rak Bangles or Rahti, as is known locally.
The city supplies businesses in the border area for sale in Nepal with a large amount of these bangles made from rack resin in a variety of colors and patterns.
“The impact is 100% because we have not sent supplies to the border areas since violence broke out,” says Ehtashamul Haque, 37, bangle trader at Muzzaffarpur. “We were expecting to increase production and sell at the upcoming Dashain Festival, but our plans were a huge shock. Holdings of stocks will stop investments and take months to clear them.”
Sham Sundarvimseria, president of the North Bihar Chamber of Commerce and Industry and Industry, shared with Al Jazeera that while the upcoming festival in Nepal is a major event that brings together many buyers from it, the current political turmoil is certainly affecting the business of people who rely on their neighbours.
“It’s difficult to estimate total losses due to tension, but it will have a major impact on businesses that are completely dependent on them.”
Tourism hit badly
Nepal tourism has become a huge hit due to the confusion. The country’s largest industry contributes about 8% to its economy, welcoming nearly 1.2 million foreigners each year. But the visuals of hotels, like hundreds of travellers stuck at the time of the international airport temporarily closure, are plundered and destroyed, which scares tourists, industry insiders say.
“The violence couldn’t come at a bad time as the season had begun and bookings had already reached its peak. Cross-border tourism to countries like Bhutan, Nepal and Bangladesh was already affected by political tensions in Bangladesh last year.
Dutta hopes that the decline in travellers will affect Indian businesses. Tourists are especially expected by Buddhist monks who travel to both Nepal and India to visit the sacred sites of Ghatham Buddha.
KP Singh, founder of Uttar Pradesh travel agency Pashupati Nath Tour and Travel, said the damage had already been done.
“The image of a hotel being plundered and destroyed remains engrossed in the minds of tourists who feel reluctant to travel to Nepal. In September, there were already 56 tour bookings, but they had to cancel due to current circumstances.
