Nepal and India have intensified their diplomatic engagements over the past few months. The surge in high-level ministerial visits and agreements underscores a pragmatic approach taken by the two countries to boost economic, environmental and security partnerships while navigating existing challenges.
Within this short span, two senior Indian ministers visited Nepal, while three Nepali ministers traveled to India for talks. Foreign Minister Arzu Rana Deuba’s discussions with India’s External Affairs Minister S Jaishankar in New Delhi focused on political and economic collaboration, while Minister for Forest Ain Bahadur Shahi Thakuri’s meeting with his Indian counterpart focused on transboundary environmental conservation. During Minister for Water Supplies Pradeep Yadav’s visit to New Delhi, the two countries signed an agreement expanding cooperation in water resources management, sanitation and hygiene. The two countries have expressed commitment to address water scarcity and improve public health through joint infrastructure projects and knowledge-sharing.
Meanwhile, India’s Minister for Power Manohar Lal Khattar’s visit focused on cross-border electricity trade and hydropower development. Officials of Nepal Electricity Authority (NEA) and Power Grid Corporation of India signed an MoU to advance two critical trans-border transmission lines in the presence of Khattar and Energy Minister Deepak Khadka. Complementing this, a recent Memorandum of Understanding (MoU) in agricultural science and technology, signed by Agriculture Minister Ramnath Adhikari and India’s Minister for Agriculture and Farmers’ Welfare Shivraj Singh Chouhan in Kathmandu aims to enhance food security and sustainable farming through joint research and innovation. Security and trade ties have also seen progress. The Nepal-India Joint Working Group and director general-level talks addressed border management, cross-border crime and trade facilitation which are crucial for Nepal’s reliance on Indian ports. India recently renewed Bureau of Indian Standards (BIS) certifications for over 100 industries, which will help resume long-stalled export of products like cement, steel and agro products to India.
There are some concerning issues as well. Nepal harbors resentment with India over delayed Eminent Persons’ Group (EPG) Report and handling of border issues. Recent allegations of India’s support for Nepal’s pro-monarchy movement, though swiftly denied by India, highlight the delicate nature of Nepal’s domestic politics. India’s wariness of Nepal’s engagement with China’s Belt and Road Initiative (BRI) adds another layer of complexity. Despite these tensions, both nations have prioritized economic and developmental partnerships. Such partnerships are crucial for Nepal given withdrawal of the USAID support and impending graduation from Least Developed Country (LDC) status, which could impact international development support to Nepal.
The one-on-one meeting between Prime Minister KP Sharma Oli and Indian Prime Minister Narendra Modi on the sidelines of the BIMSTEC meeting earlier this month and Wednesday’s telephone conversation between the two leaders following the terrorist attack in Pahalgam of Kashmir signal a commitment to strengthening ties. While Oli’s potential visit to New Delhi remains uncertain, this pragmatic approach—emphasizing mutual benefits while gradually addressing contentious issues—is paving a promising path for Nepal-India relations.
