Owing to the close proximity, the symbiotic nature of Nepal-India relations is vested in the strategic partnerships arising from aligned perceptions of economic growth, security and development both in bilateral and regional associations. The overarching and intertwined spheres of geopolitics and geoeconomics has produced an environment where post the global pandemic experts have adopted a more cautious stance moving ahead. As the general scope of challenges and opportunities have evolved and continue to transform partnerships, Nepal and India have been exploring the contours of their economic trajectories, while reimagining the potentials of their current engagements. Think tanks take a pivotal spot in analyzing such trends as research hubs and thought engines when identifying, structuring and projecting narratives to posit succinct information and policy recommendations. As policymaking is devised almost exclusively as a governmental duty, think tanks often generate valuable data and ideas as reference points for public and private actors to design their approach when meeting their diverse interests.

Economic interdependence has been a defining trait of Nepal-India relations. As immediate neighbors, the much touted cultural, economic and religious ties are taken as foundations for a common historical graph to be formed and explored. In modern history, following the treaties signed in the 1950s, Nepal and India have engaged in matters of trade and commerce, primarily resting on the frameworks developed within the 1950 Treaty of Peace and Friendship and the 1954 Treaty of Trade and Transit. As noted by the bilateral brief issued on June 2024, over forty institutional mechanisms anchor the overall relations between the countries. An open border that has been discussed within such arrangements has further guaranteed a unique dimension, promoting freedom of movement.

In recent times, the countries have updated and reviewed past agreements, while inking pivotal documents, laying the groundwork for future partnerships, particularly looking into sectors that carry tremendous potential. These incorporate the long-term power agreement signed in early 2024, followed by a tripartite agreement between Nepal-India-Bangladesh in November - events that served as highlights in the interstate relations. They signify aligned interests in areas including trade and connectivity, energy, allowing for prospects of shared development.

Technology has, moreover, been a defining variable in interstate as well as institutional transactions as the digital narrative has gained prominence in the geoeconomic discourse, with interests being harnessed in development of digital public infrastructure and digital connectivity in the case of Nepal and India, amongst others. As such, Nepal and India can aspire to leverage expertise in the Information Technology (IT) sector to foster innovation and entrepreneurship. The countries have long been trading and cooperating in a regional space that remains fragmented, providing an example of continued aspirations of securing the aspect of mutuality in the relations. A conducive environment for cross-border investments, entrepreneurial growth and knowledge sharing can stimulate job creation, skill development, and economic diversification. Additionally, joint initiatives in education and skill development can empower their human resources, fueling innovation and competitiveness in the global market.

The first Think-Tank Summit that took place in 2018, attended by several think-tank directors, presidents, and senior fellows, embodied the larger ambition of bridging the gap between think-tanks and policymakers. The Asian Institute of Diplomacy and International Affairs (AIDIA) hosted the Second edition Nepal-India Think-Tank Summit on April 3, 2025 in collaboration with Vivekananda International Foundation in New Delhi, India.