Intercultural Trade and Religious Diplomacy in Pre-Modern Nepal: A Historical Study of Kathmandu-Tibet Relations

# By Abinash Sharma

This study explores the historical evolution of Nepal-Tibet relations during the 17th and 18th centuries, focusing on the Kathmandu Valley’s intercultural trade, religious diplomacy, and political coordination. This multifaceted interaction between religion, commerce, and diplomacy established Nepal not only as a political entity but as a cultural and strategic bridge between South and Central Asia.

The Kathmandu Valley, home to the ancient Malla kingdoms, was more than a political territory—it was a hub of religious exchange, trade diplomacy, and cultural synthesis. From the 17th century onward, Nepal’s relations with Tibet were shaped not only by royal ambitions but also by grassroots-level multicultural trade and religious mobility. This paper traces the socio-political implications of early Indo-Tibetan trade, migration, and missionary work through a focused analysis of key historical developments between 1650–1750.

In the reign of King Jagajjaya Malla of Kantipur, the decision to appoint Brahmin priests from Maharashtra as chief priests at the Pashupatinath Temple marked the beginning of transregional religious patronage. This initiative established Kathmandu’s links to pan-Indic Hindu practices and helped enhance royal legitimacy through religious orthodoxy. It simultaneously opened the doors for religious diplomacy between Nepal and southern Indian spiritual centers.

The appointment of Bansidhar Pande, known as Kalu Pande, as the Mulkaji (chief minister), supported by figures such as Biraj Bakheti and Bise Damai (a royal musician), illustrates a complex system of social influence within court politics. Despite caste-based stratification, the involvement of so-called lower caste professionals in political appointments reveals a more nuanced understanding of power distribution in 18th-century Nepal.

Early trade with Lhasa was initially dominated by Newar Buddhist merchants—particularly the Shakyas and Udas—from Kathmandu, Patan, and Bhaktapur. Their expertise in goldwork and religious diplomacy enabled them to integrate effectively into Tibetan society. This early Newar-Tibetan trade laid the foundation for a sustained economic and cultural exchange.

By 1710, the first documented Kashmiri Muslim family entered Kathmandu for trade and later expanded operations into Tibet. The success of Kashmiri Muslims in Lhasa trade networks exemplifies the increasing religious pluralism in Himalayan commerce. Their presence also indicates the openness of the Nepalese court and Tibetan authorities to accommodate skilled foreign traders, regardless of faith.

Simultaneously, the Catholic Capuchin missionaries, notably Fathers François Félix and Anthony Mary, established a church in Kantipur under royal consent. Lhasa had already hosted Jesuit and Capuchin missions, which extended into the Kathmandu Valley. The acceptance of these missionaries suggests that religious tolerance in the region extended beyond economic pragmatism and into diplomacy.

Following the Kashmiri Muslims, Hindu ascetic orders such as the Ban (from Awadh) and the Puri (from Bihar) migrated to Nepal. King Ranjit Malla of Bhaktapur and King Vishnu Malla of Patan provided these orders with religious estates (maths) near significant temples, such as Dattatreya in Bhaktapur. These ascetic groups later received permission to conduct trade in Lhasa, highlighting the intersection of monastic life and mercantile ambition.

By the mid-18th century, Lhasa had evolved into a cosmopolitan trade center comprising Newar Buddhists, Kashmiri Muslims, and Indian Hindu monks. This multiethnic presence underscores how Nepalese merchants and religious groups acted as key intermediaries in Sino-Indian trade. It also reflects Nepal’s embeddedness in a broader trans-Himalayan geopolitical framework that merged spirituality with commerce.

This research reveals that Nepal’s role in early Himalayan geopolitics was deeply influenced by multiethnic cooperation and religious diplomacy. The Kathmandu Valley’s historical relationship with Lhasa challenges modern notions of rigid national and religious boundaries. Rather, it reflects a dynamic, interconnected region where faith, trade, and politics coexisted and flourished. By examining overlooked actors such as Kashmiri Muslims, Indian ascetics, and Christian missionaries, this study contributes to a more inclusive understanding of Nepal’s pre-modern international relations.

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Subedi, Abhi. Nepal-Tibet Relations Through the Ages. Kathmandu: Ratna Pustak Bhandar, 1985.

Shakya, Tsering. The Dragon in the Land of Snows: A History of Modern Tibet Since 1947. Penguin Books, 1999.