Bihar shares a large part of its border with Nepal, including 10 trade transit points for Indo-Nepal trade. There is much potential for economic gains towards which India and the state of Bihar can cooperate with Nepal within the mutually agreed formal framework. The region has a locational advantage that bestows natural interdependence, which is yet to be utilised. There is a need to shift from bilateralism to subregionalism as far as South Asian regional cooperation is concerned.
