One day while herding her family cows, Biniya comes across a blue-colored Japanese umbrella belonging to a group of tourists.

She takes a liking to the umbrella and trades her bear claw necklace, Yantra, to the Japanese tourists in exchange for it.

Biniya's mother scolds her for this, since the bear claw necklace is considered to be auspicious and bring good luck.

This invokes the jealousy of some people, especially Khatri, who covets such an umbrella but finds himself unable to buy one due to its high cost.

The Blue Umbrella received positive reviews, including Hindustan Times writer Khalid Mohamed who describes it as a child's confection 'with passages of charm, visual aplomb and lively performances.