India and Nepal have signed new agreements for hydropower, power trading, and trade and transit. India Prime Minister Narendra Modi made the announcement on 1 June 2023 during a visit to India by Nepal Prime Minister Pushpa Kamal Dahal. It was Prime Minister Dahal's first official trip abroad since he assumed his post in December 2022.

Among the agreements signed were deals to trade electricity and develop hydropower. India is slated to import 10,000 megawatts of electricity from Nepal in the next 10 years.

India and Nepal also signed a revised treaty of transit that would improve trade through rail and waterways. Agreements were likewise signed to develop integrated check posts, as well as establish a cross-border digital payment mechanism that would greatly benefit students and tourists.

• India, Nepal ink several MoUs on infra, cross-border energy
• PM Modi, Nepalese counterpart Pushpakamal Dahal 'Prachanda' hold talks