An assessment of Nepal-India relations

The recent meeting between Nepali Prime Minister KP Sharma Oli and Indian Prime Minister Narendra Modi on the sidelines of the BIMSTEC summit in Thailand has sparked cautious optimism about the trajectory of bilateral relations. The one-on-one discussion, described by observers as potentially ice-breaking, comes against the backdrop of an unusually prolonged delay in arranging an official visit by Oli to New Delhi—a standard diplomatic protocol that typically follows a change of government in Nepal.

Ten months into Oli’s third term, the absence of an official invitation from India has fueled speculation about underlying tensions between the two neighbors. Diplomatic sources suggest several factors may be contributing to the hesitation, including Nepal’s deepening engagement with China through initiatives like the Belt and Road Initiative (BRI) framework agreement, which has reportedly caused discomfort in New Delhi.

Minister for Foreign Affairs Arzu Rana Deuba had previously indicated that preparations were underway for reciprocal visits by both prime ministers, but her recent silence on the matter suggests recalibrated expectations. Prime Minister Oli himself offered an unusually muted explanation upon returning from Thailand, stating simply that his India visit wasn’t happening due to his busy schedule and might occur “if time permits.” This contrasts with his more enthusiastic pronouncements about bilateral relations during previous terms.

Historical context suggests such delays aren’t unprecedented—former Prime Minister Sher Bahadur Deuba waited nine months after taking office in 2021 before visiting India. However, the current situation appears more complex, with Indian officials privately emphasizing their desire for any high-level visit to yield substantive outcomes, possibly including the inauguration of joint infrastructure projects. “There’s no major obstacle,” one senior Indian official noted, “but we want the visit to demonstrate tangible progress in the relationship.”

The delay in the prime minister’s visit to India does not mean that there is a lack of communication between the two governments. Oli and Modi first met on the sidelines of the 78th General Assembly of the United Nations in September last year. Since then, Foreign Minister Deuba has also held meetings with Indian Prime Minister Modi and her Indian counterpart S Jaishankar.

Officials say though there hasn’t been a prime ministerial-level exchange between Nepal and India,  meetings of all bilateral mechanisms have been taking place to address mutual concerns and issues. There have also been ministerial level visit exchanges and more are lined up in the imminent future. 

A senior official at the Office of the Prime Minister and Council of Ministers said, “The delay in the prime minister’s India visit doesn’t mean that the ties between Nepal and India have stalled, because all bilateral engagements are sailing in a smooth manner.”

Following the Thailand meeting between Oli and Modi, India’s Ministry of External Affairs released a carefully worded statement emphasizing continued cooperation in connectivity, energy and people-to-people ties, while conspicuously avoiding mention of more sensitive issues. The statement reaffirmed Nepal’s importance under India’s ‘Neighborhood First’ policy, suggesting an effort to project normalcy despite the evident diplomatic awkwardness.

 

The aborted plan for Modi to attend Nepal’s Sagarmatha Sambaad dialogue in May—ostensibly due to scheduling conflicts with a European trip—highlighted some of the coordination challenges for high-level exchanges. Nepali officials acknowledge the late invitation may have been a logistical misstep, but some analysts see it as emblematic of broader communication gaps.