Policymakers and businessmen at the Indo-Nepal Trade Festival said Nepal's hydropower resources could become a long-term energy supply for India's AI-economy.
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Nepal has emerged as a key partner in ensuring long-term energy supply for India's AI-centric development strategy. Policymakers, diplomats and private sector representatives attending the Indo-Nepal Trade Festival 2026 in New Delhi said that Nepal's clean hydropower resources and geographical features can provide a reliable energy base for India's expanding digital and AI infrastructure.
The three-day festival aimed to take multi-faceted economic, technical and cultural cooperation between Nepal and India to new heights. The event, organized by the Everest Chamber of Commerce, was jointly organized by the Nepal Tourism Board and the Trade and Export Promotion Center. According to the organizers, the participation of more than 50 stalls and about 20,000 visitors reflected the growing interest in bilateral trade and investment cooperation.
In the energy session, speakers put forward the concept of a ‘Himalayan Compute Corridor’ and said that resources such as clean hydropower and cool climate available in Nepal can provide a suitable environment for the development of data centers and AI ecosystems. India is expanding its investment in AI, cloud computing and high-capacity data processing. In this context, they said that long-term, green and stable energy supply is an important requirement.
Nepali Ambassador to India Shankar Prasad Sharma stressed the need to make Nepal’s tourism promotion in India more effective. Stating that diversification is necessary in the export structure, he opined that dependence on soybean oil and palm oil should be reduced and other products expanded. Expressing concern over the low participation of Nepali people in the Indian trade fair, he called on the private sector to move forward with a clear roadmap.
The speakers pointed out that before exporting energy, strengthening transmission infrastructure within Nepal, reliable supply in rural areas and policy stability are necessary. It was expressed that both countries can achieve mutual benefits through stable policies, private sector activity and expansion of cross-border transmission lines.
The program also discussed banking and fintech cooperation, digital payment system interconnection, tourism promotion, youth and educational exchanges, health cooperation and the role of the media. The participants pointed out the need to move forward in a new framework by linking traditional trade relations with energy, digital economy and innovation.
