India is a major investor in Nepal, with over 400 projects and accounting for about 44 percent of Nepal's foreign investment.

According to official data, trade between the two neighbours in 2008-09 stood at $1.86 billion (Rs.13,600 crore) and is expected to exceed $3 billion this fiscal.

Nepal is heavily dependent on India for foodgrain, medicines and petroleum products besides cement and steel, vehicles, machinery, and electronic and agricultural equipment.

Nepal's major exports to India consist of vanaspati ghee, yarn, textiles, juice and chemicals.