21 September 2021, NIICE Commentary 9597
Dr. Pramod Jaiswal

Nepal and Armenia established diplomatic relations on 26 March 1993, shortly after Armenia gained independence from the Soviet Union in 1991. Since the establishment of diplomatic ties, relations between the two landlocked countries have progressed slowly, and there is hardly any literature available on their bilateral relations. Therefore, this article aims to explore potential areas of collaboration between the two nations.

Historical Context

Despite the late start, Nepal recognized the importance of engaging with emerging republics like Armenia as part of its broader foreign policy to diversify partnerships beyond South Asia. Similarly, Armenia, positioned at the crossroads of Eastern Europe and Western Asia, has aimed to expand its diplomatic presence by establishing connections with countries in Asia, including Nepal.

Historically, both nations have preserved distinct political and cultural identities while contending with foreign domination. Armenia endured invasions by powerful empires, including the Ottoman, Persian, and Russian empires. Similarly, Nepal maintained its independence throughout the colonial era, despite British imperial interests in South Asia. Nepal stands out for its unique blend of Hindu and Buddhist traditions, while Armenia is renowned for being the first nation to adopt Christianity as a state religion in 301 AD. These shared experiences of resisting external pressures, preserving independence, and navigating rich religious and cultural heritages have fostered mutual respect between the two nations.

Diplomatic Relations

In order to facilitate diplomatic exchanges, Nepal’s embassy in Moscow often represents its interests in Armenia, while Armenia’s diplomatic mission in New Delhi oversees its relations with Nepal.

In recent years, Nepal and Armenia have shown greater interest in strengthening their diplomatic ties, particularly through high-level visits and participation in international forums. In December 2023, Narayan Prakash Saud, Nepalese Minister of Foreign Affairs visited Armenia to attend the Ministerial Meeting of the Landlocked Developing Countries. In May 2024, National Assembly of Armenia hosted a delegation of National Assembly of Nepal, where discussion took place about forming a Parliamentary Friendship Group to foster deeper collaboration and enhance people-to-people relations. During the visit, a Memorandum of Understanding was signed between the Chamber of Commerce and Industry of Yerevan and Nepal Chamber of Commerce. The Armenian side also expressed interest in investing in Nepal’s agriculture and tourism sectors. Additionally, in September 2024, Armenia hosted three participants from Nepal for its inaugural edition of the Yerevan Dialogue, organized by the Ministry of Foreign Affairs.

Nepal and Armenia, positioned between powerful neighboring states, share common economic and strategic concerns. Both nations actively engage in multilateral platforms like the United Nations, where they advocate for global peace, sustainable development, and climate action. As small, landlocked countries, they have frequently aligned on key global issues, championing multilateralism and the interests of developing nations. The two nations have also supported each other’s efforts for international recognition and collaboration. Armenia has consistently backed Nepal’s UN initiatives, particularly in climate change, human rights, and peacekeeping. In turn, Nepal has shown solidarity with Armenia on matters of regional stability in the South Caucasus, often maintaining a neutral position on conflicts such as the Nagorno-Karabakh issue.

Economic and Trade Cooperation

Both Nepal and Armenia are small economies, with USD 41 billion and USD 20 billion respectively. Nepal’s GDP is heavily reliant on agriculture, remittances, and tourism, while Armenia’s economy is increasingly driven by technology, agriculture, and mining.

Tourism presents a viable area for collaboration. Both Nepal and Armenia are renowned for their rich cultural heritage and natural landscapes, attracting tourists from around the world. Nepal, home to the majestic Himalayas such as Mount Everest and iconic cultural landmarks such as Lumbini and Pashupatinath, can promote itself to Armenian tourists seeking spiritual and adventure tourism experiences. Similarly, Armenia’s ancient monasteries, historical landmarks, and scenic landscapes offer unique travel opportunities for Nepali visitors.

The exchange of goods, although limited at present, could also see growth. According to Ministry of Foreign Affairs of Armenia, Nepal exported goods and services worth USD 20.7 thousand which reached the highest in 2021 (worth USD 32.1 thousand). There is almost non-existent export from Armenia to Nepal. However, there is huge potential of bilateral trade because Armenia has a growing tech sector, producing electronics, software, wines and processed food; while Nepal offers handicrafts, textiles, and agricultural products such as tea, coffee and spices. The two countries can explore avenues for promoting trade in these areas, including the development of trade agreements and participation in international expos to showcase each other’s products.

Both Nepal and Armenia face difficulties in accessing global markets, which necessitates the creation of innovative economic strategies and regional partnerships. Collaborative efforts to improve infrastructure and logistics, as well as lessons from Armenia’s growing tech industry, could benefit Nepal as it seeks to modernize its economy.

Cultural and Educational Exchanges

Cultural exchange between Nepal and Armenia, though limited, holds great potential for building stronger people-to-people ties. Both countries boast rich cultural heritages that could be further promoted through academic partnerships, artistic collaborations, and tourism initiatives. Nepal’s cultural diplomacy, driven by its Hindu and Buddhist traditions, can resonate with Armenia’s deeply rooted Christian heritage. Joint cultural festivals, academic conferences, and exchanges between scholars of history, religion, and culture could pave the way for a deeper understanding of each other’s traditions.

Education is another key area where Nepal and Armenia can collaborate. Both countries have growing youth populations that could benefit from academic exchanges and scholarships. Armenian universities, particularly those specializing in technology and sciences, could attract Nepali students, while Nepal’s universities can offer programs related to Himalayan studies, Buddhism, and development studies that may appeal to Armenian students. Armenia has become an increasingly popular destination for students seeking affordable, high-quality medical education. Armenian universities, like Yerevan State Medical University (YSMU), offer medical programs that are recognized by international medical bodies such as the World Health Organization (WHO). Nepalese students could benefit from such opportunities.

Furthermore, Armenia’s Armenian General Benevolent Union (AGBU) operates globally, including in Asia, and could serve as a platform for cultural and educational partnerships between the two nations. The AGBU has historically played a role in fostering Armenian diaspora communities and cultural preservation, and its outreach could be extended to promote Armenia-Nepal ties.

Challenges in Bilateral Relations

Despite the potential for cooperation, several challenges impede the deepening of Nepal-Armenia relations. First and foremost, the geographical distance between the two countries, coupled with the absence of direct transport links, lack of e-visa facilities for Nepalese, and absence of their embassies in each other’s capital, poses logistical difficulties for trade, tourism, and diplomacy. Without direct air connectivity, the costs of travel and trade remain high, limiting the frequency of exchanges.

Additionally, the lack of a formal trade agreement between Nepal and Armenia has hindered the growth of economic relations. Both can benefit from exploring the potential for bilateral trade agreements or investment treaties that could facilitate easier access to each other’s markets. Nepal has abundant potential for hydropower development, while Armenia is focusing on developing solar and wind energy. Both countries can collaborate in renewable energy sectors by sharing expertise and technologies to promote energy sustainability.

Similarly, both Nepal and Armenia are known for their trekking routes. Nepal is famous for the Annapurna and Everest Base Camp treks, while Armenia offers scenic hikes such as the Transcaucasian Trail and Mount Aragats. Both countries would benefit by promoting each other’s tourism sector that will enhance people-to-people relations which will open new avenues of collaborations.

Another challenge is the limited awareness and understanding between the people of Nepal and Armenia. Cultural and educational exchanges, while promising, are still in their infancy, and greater efforts are needed to foster grassroots-level connections. Both governments need to invest in cultural diplomacy and encourage private sector involvement in promoting tourism and trade.

Future Prospects

The future of Nepal-Armenia relations holds promise as both countries recognize the benefits of collaboration in a globalized world. Nepal can learn from Armenia’s technological advancements, while Armenia can benefit from Nepal’s experiences in sustainable tourism and renewable energy development. Armenia’s experience in digital transformation and e-governance could be shared with Nepal, which is working on improving its digital services for government and citizens. Knowledge-sharing workshops and collaborations on digital literacy and smart governance initiatives would be mutually beneficial. The development of institutional frameworks for trade, tourism, and academic exchange is essential to unlocking the potential of this partnership.

Furthermore, greater cooperation in multilateral platforms, particularly on issues such as climate change, sustainable development, and peacebuilding, will strengthen their diplomatic ties. Both Nepal and Armenia, as small landlocked nations, share similar concerns about connectivity, environmental sustainability and the challenges of globalization, offering opportunities for collaboration in international forums. Nepal is one of the largest contributors to UN peacekeeping missions, while Armenia also participates in peacekeeping operations. Both countries could collaborate in the training and exchange of peacekeepers, sharing expertise in maintaining global peace and security. Both Armenia and Nepal can collaborate on multilateral platforms such as NAM (where Nepal is a member and Armenia is observer) and the United Nations to advocate for the interests of small, landlocked nations and promote peaceful resolutions to global conflicts.

Nepal and Armenia are at an early stage of their bilateral relationship and the foundations are being laid for a deeper partnership. By overcoming challenges related to geography, trade, and connectivity, both nations can enhance their cooperation in the areas of diplomacy, economics, culture, and education, contributing to their mutual prosperity in the years to come.

Dr. Pramod Jaiswal is Research Director at NIICE.