The recent three-day-long state visit by prime minister Deuba, Nepal requested India to invest more in export-oriented industries in the country, a senior MEA official said.Īpart from the usual fears of a heavier diplomatic slugfest, and tensions at the border, the latest political crisis in neighbouring Pakistan has surprisingly brought prospects for a positive change in relations.Īlso Read | India-Pakistan ties after Imran Khan: Too early to take a viewAny regime change in Islamabad has always been monitored closely by New Delhi for potential changes in the border scenario, and militancy. Meanwhile, of the $1 billion worth of Nepal's exports to India, it is estimated that a large chunk is imported by Indian traders to simply reexport onwards. Among those that could be affected are automobile manufacturers. Nepal is the ninth-largest export destination for Indian goods. This has spooked Indian exporters given that Nepal represents a ready market in the neighbourhood. The central bank had last week banned the import of all non-essential goods to save foreign exchange, which had fallen to a level where it can sustain only 6 months of imports. The situation reached a head when Nepalese Prime Minister Sher Bahadur Deuba sacked the head of Nepal Rastra Bank, the country's central bank, earlier this month over allegations of leaking sensitive information and failing to address the crisis of falling forex reserves. Pricier goods from India, due to rising commodity prices, and disruptions to the supply chain have led to a surge in the price of goods in Nepal. Exports to Nepal stood at $8.7 billion in the first 11-months of 2021-22, and spanned almost all categories of retail and industrial goods.Īlso Read | India, Nepal pledge to strengthen bilateral ties Land-locked Nepal imports a predominant proportion of its requirements from India. While going on record to state that Nepal's economic situation is nowhere near as bad as Sri Lanka, Nepalese Economic Minister Janardhan Sharma earlier this week accepted that the country was facing double-digit inflation. The government of Tamil Nadu has urgently requested the Home Ministry to address the issue and asked the Centre to ensure this doesn't become a fresh humanitarian crisis. Under the Rajapaksha administration, Sri Lankan Tamils have continued to complain of racial and economic discrimination and the current crisis has led to many illegally crossing to Tamil Nadu on fishing boats and makeshift vessels. He also happens to be Mahinda Rajapaksha's elder brother. The war ended in 2009 when former army general and current President of Sri Lanka Gotabaya Rajapaksa launched a military campaign in core LTTE areas. The Sri Lankan Tamil community were at the centre of the 26-year-long Sri Lankan civil war fought between the Sri Lankan government in Colombo and the erstwhile Liberation Tigers of Tamil Eelam (LTTE) militant group based in the northern Jaffna peninsula. While they have always traditionally had deep commercial and family ties to India, in the past 10 years many Sri Lankan Tamils have shifted to India for work, especially in Chennai and Bangalore.
Sri Lankan Tamils, who live predominantly in the north and east of the island, form the largest minority group at 11.1 percent as of the last population census conducted in 2012. This number includes business and family visits by both Sri Lankan Tamils settled in India and Indian Tamils with family ties to the island nation. According to the India Tourism Statistics 2019, 3.84 lakh Indian nationals departed from India for Sri Lanka. The government does not make public statistics on the number of Indians who visit abroad specifically for tourism purposes. But scenes of violent clashes on the streets of major cities have held back Indian tourists. Many major resort groups in Sri Lanka have communicated lower prices for new all-inclusive and secure stays whereby tourists wouldn't have to step out of the premises, they say. With an economic crisis breaking out in the country, Indians are cancelling advance bookings, even though hotels have dropped rates to record lows, according to the Travel Agents Association of India. But that year, Indian tourist arrivals rose to over 56,000 visitors, making Indians the largest foreign group of tourists in Sri Lanka for the first time in decades. Till 2021, Sri Lanka did not even feature among the top 15 foreign tourist destinations for Indians.
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Fresh off the Covid pandemic, Indians were eyeing a series of foreign destinations and the island nation had emerged a quick favourite owing to its affordability and access.
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