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According to sources, among the worst-hit are Indian-owned commercial properties and small businesses concentrated in Kathmandu and Pokhara
Smoke and flames billow out after several structures were set on fire during massive anti-government protests in Kathmandu. (PTI photo)
As Nepal reels from unprecedented nationwide protests led by its youth against censorship, corruption, and political instability that have toppled its government, thousands of Indian nationals have found themselves in the eye of the storm—economically, socially, and politically.
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Over the last three days, violent protests in the Kathmandu Valley have left at least 19 people dead and scores injured. While the unrest has domestic origins, its spillover has significantly affected the large Indian diaspora living and working in Nepal. Business losses, physical threats, online hostility, and evacuation challenges have exposed the vulnerability of nearly 200,000 Indians legally residing in the country.
Indian-Owned Businesses Bear the Brunt
According to sources, among the worst-hit are Indian-owned commercial properties and small businesses concentrated in Kathmandu and Pokhara. Malls like Civil Mall and KL Tower, along with numerous Indian-run trading houses in the New Road area, have been targeted in arson and looting incidents between September 7 and 9. According to initial assessments, losses are estimated in crores of Nepali rupees.
In the Sundhara Market, at least three Indian-owned shops were set ablaze, further escalating fear among the business community. Many Indian restaurateurs, hoteliers, and shopkeepers have shuttered operations indefinitely, with over 400 small businesses affected. Daily financial losses for Indian entities in the Kathmandu and Pokhara regions are estimated between Rs 15-20 crore (INR).
Thousands Stranded Amid Airport Closure and Curfews
The closure of Tribhuvan International Airport since September 9 has stranded nearly 2,500 Indian tourists and business travellers, many of whom were visiting pilgrimage sites like Pashupatinath and Muktinath. Among them are elderly pilgrims and medical patients who are now without access to care or safe transport.
The Indian embassy in Kathmandu has confirmed that several tourist groups from Andhra Pradesh and Bihar are currently under its protection. In addition, 30-40 Indian students, residing in private hostels near Kalanki and Koteshwor, were reportedly trapped during violent clashes on September 8, requiring local assistance and Embassy coordination to reach safety.
With curfews imposed and highways to Raxaul and Sunauli either blocked or dangerous due to ongoing clashes, evacuation by land remains severely restricted.
Growing Hostility: Online Campaigns and Misinformation Targeting Indians
Beyond physical risks, a new wave of digital hostility and misinformation has intensified threats to Indian nationals. According to top Indian intelligence sources, Pakistan’s Inter-Services Intelligence (ISI) and affiliated Islamist groups are actively amplifying anti-India narratives online, portraying New Delhi as a backer of Nepal’s monarchy revival.
This disinformation campaign is being carried out through coordinated online efforts and social media manipulation, targeting Nepal’s angry, digitally mobilised youth. Sources warn that this could trigger mob violence or targeted attacks on Indians and Indian-affiliated institutions.
Of particular concern are reports of pro-monarchy protesters seen waving Indian flags during demonstrations—a move described by Indian intelligence officials as a “false flag” effort meant to sow confusion and provoke hostility. Rival protest groups, unaware of the ploy, have publicly accused India of interference in Nepal’s internal affairs, further complicating public sentiment.
Diplomatic Response and Evacuation Challenges
India’s ministry of external affairs (MEA) has issued a travel advisory urging citizens to avoid travel to Nepal and has released emergency helpline numbers for those stranded. However, officials admit that limited mobility, airport shutdowns, and highway blockades are making coordinated evacuation efforts difficult.
Meanwhile, hundreds of Indian workers in IT, call centres, and cross-border trading hubs have been unable to contact families due to disrupted internet and telecommunications services. The situation remains tense, with many fearing further escalation.
Looking Ahead
With over 15-20% of the Indian community in Nepal concentrated in the Kathmandu Valley, where the violence is most intense, the days ahead will test India’s ability to safeguard its citizens amid a foreign crisis spiralling into chaos.
The Indian embassy continues to coordinate with local authorities, but with the political vacuum following Prime Minister KP Sharma Oli’s resignation, anti-India sentiment rising, and external forces exploiting the situation, the environment remains volatile.
For now, sources say the priority is the safety and swift evacuation of the stranded—before online misinformation leads to offline violence.
About the Author
Group Editor, Investigations & Security Affairs, Network18
Group Editor, Investigations & Security Affairs, Network18
September 10, 2025, 06:53 IST
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