Gen Z Movement In Nepal Cripples India Border Town Market, Causing Millions In Daily Losses
Uncertainty grips traders in Banbasa who have already lifted huge quantity of stocks for Dussehra and Diwali
Published : September 13, 2025 at 6:21 PM IST
By Deepak Phulera
Khatima: (Indo-Nepal Border): Recent unrest from the Generation Z movement in Nepal has temporarily disrupted cross-border trade, causing significant losses for markets in border towns in India's Uttarakhand state. While cross-border trade has reportedly resumed, the situation highlights the fragility of these markets, which depend heavily on customers from Nepal.
The India-Nepal international border along Uttarakhand was sealed during protests, halting the daily movement of essential goods and cross-border traffic. Similar disruptions occurred in other border areas across Uttar Pradesh, Bihar and West Bengal.
The closure of key entry points at the border led to substantial daily financial losses for Indian traders. For markets in Uttarakhand border towns like Banbasa, the economic impact is particularly severe, as nearly 90% of trade relies on Nepali customers. With the situation still fragile, the flow of Nepali customers has significantly decreased, leaving these markets deserted.
Banbasa town of Champawat district of Kumaon division in Uttarakhand is adjacent to the Nepal border. At the Indo-Nepal border point, while on the Indian side, there is Banbasa town of Champawat district, on the Nepal side, there is the city of Mahendra Nagar, the district headquarters of Kanchanpur.
The distance between the two cities is about 15 km. The distance from Banbasa market to the Nepal border is seven to eight km, while the distance from the same border to Mahendra Nagar city of Nepal is also seven to eight km.
According to the local traders, a large number of Nepali traders from Mahendra Nagar city come to India to shop in Banbasa market. Local people of Nepal also turn to Banbasa market of India for goods at cheaper rates.
But due to the Gen Z movement of Nepal and the violent turn of events, the borders are witnessing stricter controls from either side. Due to this, movement of trade and men between India and Nepal has come to a standstill.
The administration of Mahendra Nagar, Kanchanpur in Nepal, adjacent to Banbasa, has imposed curfew to restore peace, due to which the Meena Bazaar of Banbasa has become completely deserted.
According to Bharat Bhandari, President of Banbasa Vyapar Mandal, "Meena Bazaar is suffering a loss of Rs. 40 to Rs. 50 lakh daily due to the Gen Z movement from Nepal. The markets are completely silent and devoid of business."
Abhishek Goyal, General Secretary of Vyapar Mandal Banbasa and traders like Pankaj Kumar Agarwal and Manoj Agarwal said, "Many traders are closing their shops at 4 PM and going home. Earlier, most of the customers and traders from Nepal used to buy daily essential items like salt, oil, sugar, spices and grocery items, vegetables and jaggery from this market. But now there is total silence."
Traders are estimating a loss of Rs 2 to 3 crores in the festive season. Apart from this, other important goods including clothes, hardware, motor parts and or medicines also go to Nepal from Banbasa market. Traders have already lifted huge quantities of stocks for Dussehra and Diwali. They were expecting that the market would be very lively on Dussehra and Diwali, but Nepal's Gen Z movement has been giving them sleepless nights.
If the situation does not improve soon and the border restrictions are not relaxed, then the traders will suffer a lot. Because Dussehra is considered the biggest festival in Nepal. During this time, about Rs 2.5 to 3 crore worth of daily trade takes place in India's Banbasa market. It is a matter of serious concern for all the traders of Banbasa.
Therefore, the traders of Banbasa market are waiting for the situation to become normal in Nepal as soon as possible. Apart from Champawat district, people go to Nepal from Dharchula, Jauljivi, Jhulaghat, Vyasvali and Salla village situated towards Pancheshwar in Pithoragarh district of Uttarakhand. Among these, the big markets of Dharchula, Jauljivi and Jhulaghat also fall on the Nepal border. The violent movement of Nepal has also affected the markets there.
Though trade has restarted, the incident highlights the long-term risks for border economies tied to Nepal's internal stability. For now, traders on both sides are hopeful that calm will prevail, allowing the free flow of goods and customers to resume.
