One-Day Ban On Indian Vehicles Triggers Traffic Chaos At India-Nepal Border

Last Updated:May 29, 2025, 10:54 IST

The sudden shutdown has frustrated traders and locals along the border, hitting cross-border trade hard, especially in parts of Uttar Pradesh and Bihar

Border shutdown on Nepal’s Budget Day isn’t new, but its impact is sharper this year. (News18 Hindi)

In a move that has caused significant disruption, the Nepal government has decided to close all customs offices for a day in observance of its budget day. This decision has brought the movement of Indian vehicles at the India-Nepal border to a complete standstill, leading to long queues and considerable inconvenience for Indian tourists and traders.

The closure may also impact the historically strong ‘Roti-Beti‘ relationship and trade relations between the two nations.

The suspension of Nepal’s customs operations has prevented Indian vehicles from completing the necessary road permit and customs formalities to cross the border, resulting in the halt of vehicles with Indian number plates.

Border officials have clarified that the closure is temporary and that normal activities will resume the following day. However, the sudden shutdown has caused frustration among traders and local residents along the border, particularly affecting trade in Uttar Pradesh and Bihar.

An Indian trader stranded at the border expressed concerns over financial losses due to the inability to transport goods into Nepal. Tourists have also been inconvenienced by the abrupt closure, which has disrupted their travel plans. This situation raises questions about the recent statements made by Nepal’s Tourism Minister, Badri Prasad Pandey, who had discussed the implementation of an integrated system to facilitate Indian tourists.

The open border and close cultural ties between India and Nepal have historically allowed citizens to visit each other’s countries without a visa. However, customs duties and road permit regulations still apply.

In recent years, Nepal has increased customs duties on Indian vehicles, such as the hike in 2019 from Rs 113 to Rs 150 for two-wheelers. In 2024, a new rule requiring Indian vehicles to pay an additional Rs 1600 for road permits was met with opposition from traders.

Earlier the India-Nepal border was completely closed in 2020 during the COVID-19 pandemic, causing significant difficulties for traders and citizens. Additionally, border disputes such as the one over Kalapani have strained relations.

While the tradition of closing customs offices on Nepal’s Budget Day is not new, its impact is more pronounced this year due to stricter security and inspection processes at the border.

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