The "Khukuri Dance" performed in Indian Army Gurkha units, I recall seem a bit different from that shown in the picture here.
Unlike what looks like two-person dance in this picture, the Indian-Gurkha versions were one-person affairs, kind of similar to the commomly seen MA-type kata/forms. Essentially, they were stylized drills done to music. They carried a small buckler in the left hand and khukuri in the right. The khukuri was your everyday service model, only safety measure some folks took was wrapping white cloth around the bottom third of the blade - the cho/notch area, to give extra room for some of the twirling and fancy moves. Nicks and cuts were fairly common occurence, especially during practice.
The biggest khukuri-dance I saw was a combined display put up by detachments from three Gurkha battalions who were in the same area - several hundred Gurkhas arrayed on a soccer field, sunlight glinting on the polished blades of their twirling khukuris, intense faces (no smiles here!), blood-curdling shouts and grunts, stamping feet, martial-music in the background ... of course, you had some hokey moves, after all this was a crowd-pleaser "show", but overall, this was quite a stirring sight - had the crowd on their feet at its conclusion!
...Hope people don't mind my reminiscings here ...
- Sonam