Nepal revives railways to boost economy as China, India vie for influence

Nepal Rastra Bank (Source: en.wikipedia.org)

The railway to India was a lifeline for the small southern frontier town of Janakpur, used to import everything from sweets to clothes and cosmetics and fuelling a vibrant border economy.

But it fell into disrepair after years of neglect and since 2014 the train has sat stationary, its rusting carcass now a playground for local children, while Janakpur’s markets are empty.

“When the train was running, we would have a lot of business. I was easily providing (for) my family,” said Shyam Sah, whose small family-run cosmetics shop has suffered an 80 percent drop in profits since the railway closed.

Now it is being rebuilt with Indian backing, one of three new rail lines — one funded by China in the north and a third by Nepal itself — that the country hopes will help boost international trade.

Nepal remains largely isolated from the global economy, dependent on aid and remittances.

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