New and Raw: On Nepal-India Relations
The visit of Nepal’s Foreign Minister Shisir Khanal to New Delhi, which came soon after the visit of Rabi Lamichhane, President of Nepal’s ruling RSP party, and before the planned visit of Finance Minister Swarnim Wagle, reflects active engagement between India and Nepal’s new leadership. Mr. Khanal had previously met India’s External Affairs Minister S. Jaishankar in April during a regional conference in Mauritius, but this was his first official visit to India since the RSP and Prime Minister Balen Shah assumed office following the GenZ-led protests. These meetings, which are expected to pave the way for Prime Minister Shah’s visit to India, suggest a gradual effort to strengthen bilateral relations. India extended a warm welcome to Mr. Lamichhane, who held discussions with senior BJP leaders, Prime Minister Narendra Modi, the Home Minister, Mr. Jaishankar, and the National Security Adviser.
These discussions took place shortly after Prime Minister Shah’s speech in Nepal’s Parliament, where he accused India of occupying certain Nepali territories and also claimed that Nepal controls some Indian land. He further stated, causing concern in New Delhi, that Nepal had consulted both the United Kingdom and China regarding the matter. Such remarks, along with his decision to follow protocol and decline a meeting with India’s Foreign Secretary Vikram Misri, reportedly created unease. One of Mr. Lamichhane’s immediate responsibilities was therefore to ease tensions. During a media interaction, Mr. Khanal also attempted to calm concerns by emphasizing that Nepal’s government wished to begin a new chapter in its politics and move beyond past disagreements with India. India’s Ministry of External Affairs rejected the idea of involving any third party, especially China, in bilateral negotiations, particularly as Mr. Khanal is scheduled to visit Beijing next. Meanwhile, disputes concerning Limpiyadhura and Lipulekh are likely to gain attention again during the summer as India continues facilitating Kailash Mansarovar Yatra groups through areas claimed by Nepal.
Currently, the relationship between India and Nepal covers a wide range of important issues, including border management, revision of water-sharing arrangements, infrastructure development, trade, development projects, and energy cooperation. These matters are too significant for the relationship to be disrupted easily. While Nepal’s new government may receive some understanding for its initial statements, both Kathmandu and New Delhi must remain cautious in their actions and public remarks. Any perception that Nepal is disregarding India’s regional interests, or that India is attempting to influence Nepal’s domestic governance, could revive the mistrust that has periodically affected bilateral relations, particularly since the disagreements surrounding Nepal’s Constitution and the trade blockade of 2015. Although the Modi government now faces greater diplomatic challenges due to youth-led movements that have transformed political landscapes in countries such as the Maldives, Sri Lanka, Bangladesh, and Nepal, these developments may also provide an opportunity for India to reshape its approach and strengthen partnerships with its smaller but strategically important South Asian neighbours.
