Markets are empty and consumer spending has dropped sharply along the open India-Nepal border, creating a devastating situation for traders just weeks before the crucial festival season. In towns and trading hubs that depend heavily on cross-border commerce, shopkeepers and small businesses are reporting record-low sales. Traditionally, the months leading up to major festivals such as Dashain, Tihar, and Diwali bring bustling crowds, higher demand for clothes, sweets, electronics, and household goods. But this year, both Indian and Nepali traders are staring at vacant shops and declining purchasing power among locals. Rising inflation, job insecurity, and reduced remittances are being cited as the primary reasons for the slowdown. Many families are cutting back on non-essential purchases, prioritising food and basic needs over festival shopping. For border towns that thrive on seasonal trade, this trend is especially worrying. Traders explain that open border movement usually boosts business, with Nepali buyers flocking to Indian markets for variety and better prices, while Indian merchants benefit from higher demand. However, current economic conditions have reversed this pattern, leaving businesses with unsold stock and shrinking profit margins. Local shopkeepers warn that if the slump continues, many will struggle to recover investments made in anticipation of the festive rush. Some traders are also pointing to increased competition from online shopping platforms, which further discourages traditional retail sales. With festivals fast approaching, there is little optimism that consumer sentiment will rebound in time. Economists suggest that targeted relief measures, easing of cross-border trade logistics, and confidence-building steps are urgently needed to revive market activity. Without such interventions, the festive season—once a time of prosperity—may instead bring deeper losses for border communities reliant on commerce for survival.
Empty Markets and Falling Spending Hit Traders Along India-Nepal Border Before Festival Season
