The present article aims to analyse the impact of pilgrim tourism on bilateral relations and to identify the mediating effect of people-to-people contact. It further proposes to test the framework empirically in the neighbouring context of India and Nepal. To achieve the objective, random sampling is used, and 380 usable questionnaires are taken for testing the theoretical framework. Structural Equation Modelling (SEM) is used to assess the framework's fit and analyse the impact of pilgrim tourism on bilateral diplomatic relations while using people-to-people contact as a mediating variable. The study findings reveal that pilgrim tourism has a direct impact on improving the bilateral diplomatic relationship between India and Nepal. It also shows that people-to-people contact between India and Nepal acts as a mediating variable between pilgrim tourism and bilateral diplomacy. In a vast country like India, which shares a border with many nations, pilgrim tourism and people-to-people contact have great potential to remove barriers and increase bilateral treaties for better development of the nation. The present research developed a measurement instrument about bilateral relations from the stakeholder's perspective. It also proposed a structural model to elucidate the relationships between pilgrim tourism, people-to-people contact and bilateral diplomacy.
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