Over the past few months, Nepal and India have intensified bilateral engagement, yielding tangible progress in economic and development partnerships. Although Prime Minister KP Sharma Oli’s visit to New Delhi remains uncertain, a series of ministerial meetings and bilateral mechanism discussions have taken place. Within two weeks, two senior ministers from Narendra Modi’s cabinet visited Nepal and met with Prime Minister Oli.
The past month witnessed a flurry of diplomatic activity, with three Nepali ministers traveling to India for meetings with their Indian counterparts. Foreign Minister Arzu Rana Deuba engaged in comprehensive bilateral talks with India’s External Affairs Minister, S Jaishankar, focusing on enhancing political and economic collaboration. Meanwhile, Forest Minister Ain Bahadur Shahi Thakuri met with India’s Minister for Environment, Forest and Climate Change, Bhupender Yadav, to discuss transboundary environmental conservation and sustainable forestry initiatives.
Another significant development occurred during Water Supply Minister Pradeep Yadav’s visit to New Delhi, where he met India’s Jal Shakti Minister CR Patil. The two leaders signed a landmark agreement to expand cooperation in water resource management, sanitation and hygiene—an area of critical importance for both nations. This agreement is expected to facilitate knowledge-sharing, infrastructure development and joint projects to address water scarcity and improve public health outcomes.
Indian Minister for Power and Housing and Urban Affairs Manohar Lal Khattar is currently in Nepal for a two-day official visit. According to Indian officials, the trip aimed to advance discussions on key power projects of mutual interest, including cross-border electricity trade and hydropower development.
Over the past few years, energy cooperation between Nepal and India has seen remarkable progress, with Nepal exporting surplus hydropower to India and Indian firms investing in Nepal’s hydroelectric projects. This growing synergy in the power sector is expected to bolster Nepal’s energy independence while supporting India’s renewable energy goals.
Early this month, Nepal and India signed a Memorandum of Understanding (MoU) to strengthen cooperation in agricultural science and technology. The agreement, which replaces a 1991 pact, covers a wide range of areas, including agricultural production, crop management, trade and marketing. Nepal’s Agriculture Minister Ramnath Adhikari and India’s Agriculture Minister, Shivraj Singh Chouhan, formalized the deal, which is expected to enhance food security, boost farmer incomes and promote sustainable farming practices through joint research and technology transfer.
In late March, the Nepal-India Joint Working Group convened to address critical border management issues. The discussions centered on curbing cross-border crime, improving border infrastructure—such as Integrated Check Posts (ICPs), roads and railway networks—and enhancing the operational capacity of security agencies. Both sides also explored collaborative measures for disaster risk reduction and management, recognizing the shared vulnerabilities to natural calamities like floods and earthquakes.
Further reinforcing security and trade ties, the two countries held the 21st Director General-level talks this month, focusing on measures to streamline cross-border commerce and combat smuggling. These discussions are crucial for ensuring smooth trade flows, particularly given Nepal’s reliance on Indian ports for third-country trade.
Despite the positive trajectory in bilateral relations, certain contentious issues remain unresolved. Nepal has persistently raised concerns over the delayed implementation of the Eminent Persons’ Group (EPG) report and lingering border disputes, particularly in regions like Kalapani, Lipulekh and Limpiyadhura. India, however, maintains that these matters should be resolved through established bilateral mechanisms rather than public posturing.
Recently, India’s Ministry of External Affairs Spokesperson Randhir Jaiswal reiterated this stance during a weekly press briefing, stating, “We have a bilateral mechanism with Nepal to discuss these issues. Unilateral actions do not alter ground realities.”
While Prime Minister Oli’s visit to New Delhi remains uncertain, he has met with his Indian counterpart Modi on two occasions—first on the sidelines of the UN General Assembly in September 2024 and again during the BIMSTEC summit early this month. These interactions suggest a willingness to maintain dialogue despite political sensitivities.
However, a new point of friction emerged last month when reports surfaced alleging India’s tacit support for Nepal’s pro-monarchy movement. India swiftly denied these claims, but the episode highlights the delicate nature of Nepal’s domestic politics and its implications for bilateral relations. Additionally, some analysts speculate that India may view Nepal’s growing engagement with China—particularly its participation in China’s Belt and Road Initiative (BRI)—with caution.
Foreign policy experts say that despite occasional political tensions, India has adopted a pragmatic approach by prioritizing economic and developmental partnerships with Nepal. This strategy aims to insulate mutually beneficial projects from geopolitical fluctuations while gradually addressing contentious issues through diplomatic channels.
