Context
India's and Nepal's transportation agreements need updating. Nepal's efforts to increase trade capabilities and modify industry capacity are critical to its success.

Bringing Back Regional Collaboration  
·         SAARC's inefficiency: South Asia's regional cooperation is hampered by SAARC's dysfunctionality, which calls for a new strategy to foster cooperation.
·         Highly Facilitated Trade Corridors (HFTC) should be prioritized in the BBIN and BIMSTEC regions to improve regional integration and economic growth.
·         Policy Brief from CSEP: The policy brief highlights how the HFTC can help with issues related to border transportation and trade.

Developing the India-Nepal Partnership  
·         Empathy and Trust: With an emphasis on effective trade facilitation, India-Nepal relations should be guided by empathy, trust, and complementarity.
·         Trade Infrastructure Improvement: In order to facilitate efficient trade and transportation between India and Nepal, structural changes must be made, including resolving trade-related obstacles.
·         Nepal's Modernization Role: Modernizing transportation and transit agreements depends on Nepal's readiness to improve trade-related capacity and reevaluate its industrial capabilities.

Overcoming Nepal's Economic Obstacles  
·         Connectivity should be prioritized. Nepal needs to reevaluate its goals and get past infrastructural delays caused by China, with an emphasis on enhancing connectivity with India.
·         Resolving Economic Issues: Nepal's landlocked status and trade regulations that require revision are related to the country's economic problems, which include inflation and imperfect markets.
·         Collaboration between India and Nepal: Mutual trust and cooperative efforts can stimulate the economy, enhance connectivity, and benefit all Nepalis.

LTX Mains Question
Q. Assess the value of India and Nepal's trust-based cooperation in promoting trade facilitation and regional connectivity.