Can the Jogbani–Kimathanka road unlock eastern Nepal’s economic potential?

Kimathanka, a remote Himalayan settlement in Nepal's Sankhuwasabha district bordering China, is on the cusp of transformation as a crucial 390-kilometer road linking India and China nears completion. For decades, the village faced isolation due to a lack of infrastructure, but the development of the Jogbani–Kimathanka route is set to change that reality.

The road forms a vital section of the Koshi Corridor, a north-south highway in eastern Nepal that connects India's Bihar state with the Chinese border. This corridor is increasingly viewed as a strategic trade route with the potential to serve as a land bridge between Nepal's two largest neighbors, India and China. The Bhotkhola region, once one of the country's most isolated areas, is now directly linked to Nepal's national road network, with tractors carrying supplies reaching Kimathanka for the first time recently.

Business leaders and economists anticipate that the fully operational corridor will offer Nepal an alternative route to diversify and expand its trade connectivity, reducing its historical dependence on India. If upgraded to all-weather standards, the route could significantly lower transportation costs and travel time, making imports and exports more efficient and encouraging investment and job creation. "If the route is eventually developed into a shorter and more efficient trade corridor connecting India and China, Nepal could establish itself as an important transit nation within South Asia’s trade network," said economist Bed Raj Acharya.

Nabin Rijal, former president of the Morang Trade Association, views the road's expansion as a direct benefit to entrepreneurs and industries across eastern Nepal. The project is seen not just as a local access route but as a strategic economic corridor of national importance, holding the promise of unlocking eastern Nepal's economic potential.

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If the route is eventually developed into a shorter and more efficient trade corridor connecting India and China, Nepal could establish itself as an important transit nation within South Asia’s trade network.