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The second meeting of Nepal-India Joint Business Forum (JBF) has laid emphasis on expansion of bilateral trade and business.

The meeting aimed at further deepening the economic and business relations between the two countries concluded on Saturday.

On the occasion, Minister for Industry, Commerce and Supplies Damodar Bhandari said that India is Nepal's largest trading partner and both countries should take the decisions of the JBF meeting into implementation.

He also underscored on carrying out works for resolving the problems seen in the import and export between the two nations in an easier manner.

Ministry Secretary Govinda Bahadur Karki spoke of the need of practical implementation of the topics decided in the JBF meeting.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal said there is immense possibility in the economic sector between Nepal and India. He stressed on moving ahead through policy reforms and exploring practical solutions for addressing the problems seen in both trade and business sectors.  

He called for removing the non-tariff barriers, facilitating in resolving the problems arising due to the certification process of the Bureau of Indian Standards (BIS) in export of Nepali goods, for air connectivity between Bhairahawa and Pokhara airports of Nepal with various Indian cities and for the smooth supply of explosives required for construction and development of hydroelectricity projects.

The FNCCI President also raised the topic of expanding Nepal's access to various Indian ports, including Mundra (Gujarat), Dhamara (Udisha) and Jawaharlal Nehru port (Mumbai).

The JBF meeting is a part of Nepal-India Commerce Secretary-level Meeting. In the meeting, the representatives of Nepal and India had discussed trade, investment, energy, tourism, agriculture, information technology and infrastructure development, among other topics.

An agreement was reached in the JBF meeting for the promotion of clean energy through collaboration in hydroelectricity and renewable energy, solar and wind projects, of tourism and connectivity, of easing the trans-border trade by strengthening the road, railway and air connectivity and of enhancing trade and cross-border investment, agriculture and medicinal plants, providing high-yielding seeds and technology by removing the quota for agricultural productions, of collaboration in research and commercialization of medicinal herbs and of cooperation in digital technology and startups.

The agreed upon topics of the meeting have been handed over to the Commerce Secretary of Nepal and India on Saturday itself.

JBF President Bhawani Rana and Santhil Kumar handed over the agreement to Commerce Secretary of India Sunil Barthwal and Nepal's Commerce Secretary Karki.

The Indian Commerce Secretary expressed the commitment to take the initiative for the implementation of the agendas raised in course of the JBF meeting.

Ambassador of India to Nepal, Naveen Srivastava said this meeting is important in terms of the economic issues between the two countries and that he would take initiatives for facilitating the topics raised in the JBF meeting.

JBF Nepal President Bhawani Rana reiterated that there is extensive possibility of investment and trade between Nepal and India, and there should be the required facilitation for taking benefit from this.

Similarly, from the Indian side N Sunil Kumar believed that there would be more convenience in the coming days, as the road, railway and air connectivity between Nepal and India is improving.

It is agreed that the JBF next meeting will be convened in New Delhi, India.

The 18th edition of Nepal-India military exercise with the aim of security and expansion of bilateral relations is beginning at Saljhandi in Rupandehi from Tuesday.

The battalion-level joint military exercise named 'Suryakiran' focuses on jungle warfare, counterterrorism in difficult geography, establishment of peace keeping mission as per UN Charter, humanitarian aid in disaster management and relief mobilization, internal capacity building, and environmental protection.

The two-week long training will be attended by Sri Jung Battalion of Nepali Army and the 11th Gorkha Rifle of Indian Army.

Spokesperson of Nepali Army, Gaurab Kumar KC, informed that the joint military training was expected to foster friendly relations and trust between Nepal and India and expand cultural relations as well. Professional collaboration will also be augmented with it.

The 17th edition of the joint exercise was held in Pithauragadh of India last year.

So far, the number of Nepali Army personnel attending the joint training reached 4,215 while the number from the Indian side stands at 4,442.

Such joint exercise had begun since 2067BS.

PHD Chamber of Commerce and Industry (PHDCCI) in association with the Consulate General of India (Birgunj, Nepal) and Chamber of Commerce & Industry-Chitwan (CCIC) and under the aegis of its bilateral economic Think Tank “India-Nepal Centre”, organized the “India-Nepal Economic Partnership Summit 2024” on December 14, 2024 at CCIC Headquarter, Chitwan, Nepal.

The Summit was organized to create a uniquely important platform for discussing a forward looking bilateral economic partnership agenda.  

The deliberations supported by the decision-makers' will help in opening new avenues of business engagements in the key sectors of economy besides giving a much needed boost to the economic hub of Chitwan and trade near the crucial India-Nepal border in Birgunj.

The main objective of the summit was to create a platform through joint action for deeper economic engagement between India and Nepal (with focus on remittance, imports, exports and Balance of Payment (BoP) challenges in Nepal), to channelize investment from India to Nepal and other ways round, to re-establish the India-Nepal bilateral relations as the core strength of the sub-regional co-operation in South Asia, to create a sustained convergence of industry and government, for thriving on the mutually beneficial India-Nepal bilateral relations in all crucial realms, to bring-in to notice the hidden potential in the Border Area Development Program and paving the way for India’s major involvement in helping the infrastructural facelift of Nepal’s bordering districts in Bihar and making them the gateways of India-Nepal Trade Connection, to discuss and ideate for making Cluster-based Economic Zones across Nepal and to further relax the cross-border trade norms to secure and sustain the greater economic engagements, reads a statement.

While setting the tone of the Summit with interpreting the existing macroeconomic scenario of Nepal, the Session Chair Atul K Thakur, Secretary, India-Nepal Centre, PHDCCI reflected on the necessity for having a collaborative approach among the stakeholders in the government and industry to tap the rich potential and also cope the challenges in post-pandemic times through India-Nepal economic cooperation. With emphasis on the Summit’s dwelt discussion points (New Roadmap for Accelerating India-Nepal Bilateral Cooperation; Promoting Industrial Development in Nepal and India; Revisiting Bilateral Trade Policies; Expanding Bilateral and Sub-regional Economic Cooperation; Improving Border Area Development and Connectivity), the discussions took place during the Summit.

 In his opening remarks, Suman Shrestha, President, Chamber of Commerce & Industry-Chitwan (CCIC) acknowledged that industrial development of Nepal is affected by the adverse economic fundamentals and that it necessitates closer collaboration between the business communities of India and Nepal.

He dwelt on CCIC’s remarkable contributions for the sustainable industrial development in Chitwan region and reassured for further deepening of India-Nepal bilateral economic cooperation with keeping the industries in Chitwan open for closer business partnerships, according to the statement.

 Anil Kumar Agrawal, President, Birgunj Chamber of Commerce & Industries (BICCI) recounted Birgunj’s achievements as a major trade hub of Nepal and how BICCI has been contributing over the decades in making the industry and trade, the mainstay of this place crucially important for India-Nepal economic relations. He said that, with the PHDCCI India-Nepal Centre, such bilateral economic forums will be a regular exercise to help the bilateral economic ecosystem between India and Nepal.

Devi Sahai Meena, Consul General of India, Birgunj, Nepal reassured India's support to accelerate the economic cooperation between India and Nepal. Through policy and implementation, India has been a key development partner of Nepal. He said, “Government of India is providing assistance for development of cross-border trade related infrastructure. It includes up-gradation of four major Integrated Check Posts at Birgunj-Raxaul, Biratnagar-Jogbani, Bhairahawa-Sunauli and Nepalgunj-Rupaidiha to international standards; upgrading approach highways to the border on the Indian side; broad gauging and extending rail links to Nepal. Integrated Check Posts at Birgunj and Biratnagar are fully functional.

Nepalgunj-Rupaidiha ICP was inaugurated by the Prime Ministers of both the countries on June 1, 2023, construction work of the integrated check post at the Sunauli-Bhairahawa border started at the same time. The Jaynagar–Janakpur–Bardibas cross border railway line between India and Nepal has been reopened after upgradation. This line is operational now between Jaynagar and Kurtha and will be extended upto Bardibas.  Motihar – Raxaul-Amlekhganj petroleum pipeline is transporting diesel to Nepal. 

This pipeline project between India and Nepal is the first of its kind in the entire South Asia and was jointly inaugurated by Prime Ministers of India and Nepal on 10.9.2019. 

Muzaffarpur – Dhalkebar 400 KV power transmission line built with Govt of India’s grant assistance was inaugurated by Prime Ministers of both the countries in 2016. 

The line is operating at its full capacity.  Similarly, Raxaul – Parwanipur Cross Border Transmission line built with Govt of India grant is also operational.” He added that the India-Nepal relations are supported with complementarities and people-to-people, something that should be counted as strong foundational support. He also shared an overview of the main constituents of economic cooperation and challenges at policy level that need to be tackled.

 Among others, the “India-Nepal Economic Partnership Summit 2024” was also addressed by the leading expert on Nepal affairs Mahesh Kumar Agrawal, Bihar State Coordinator, Seema Jagran Manch; Atul Koirala, Board Member, BP Koirala India-Nepal Foundation & Techno-Entrepreneur and Anand Jha, Vice President (Head of Government Engagement: India & South Asia), Visa.

Well-timed and meant to foster the border trade with emphasis on bilateral and subregional economic cooperation, the second edition of “India-Nepal Economic Partnership Summit 2024” concluded at Chitwan with providing business linkages and partnerships.

Chief of the Army Staff Ashok Raj Sigdel and Indian Army Chief, General Upendra Dwivedi, who is on a visit to Nepal, held bilateral talks at the Army Headquarters, Bhadrakali today.

The official meeting between the two Army Chiefs was focused on mutual partnership and interests between the militaries of the two countries.

During the talks, brief information about Nepali Army's duties and responsibilities, and the work performance was presented, NA Spokesperson Gaurav Kumar KC informed.

Before that, Indian Army Chief Dwivedi received the guard of honor presented by the Nepali Army, according to the Directorate of NA Public Relations and Information.

On the occasion, the Indian army chief planted a tree in the Jangi Adda (Headquarters complex).  The Indian army chief laid a wreath at the Memorial to the Brave Soldier located at the Army Pavilion in local Tundikhel.

President Ram Chandra Paudel is scheduled to confer on Army Chief Dwivedi the rank of Honorary General (Maharathi) of the Nepali Army today.

There is a tradition of Nepal and India conferring the rank of Honorary General on each other's Army Chief since 1950.

This is General Dwivedi's first official visit to Nepal after his appointment as the Chief of the Indian Army on June 30.

He is scheduled to call on Prime Minister KP Sharma Oli and Defence Minister Manbir Rai tomorrow.

The seventh edition of the South Asian Football Federation (SAFF) Women's Championship is kicking off at Dasharath Stadium in Kathmandu today.

ANFA shared that Nepal along with the Maldives, Pakistan, Sri Lanka, India, Bhutan and Bangladesh are taking part in the championship.

The final match of the championship is scheduled to take place on October 30.

According to ANFA, the participating teams have been divided into two groups. Defending champion Bangladesh, India and Pakistan are placed in Group 'A', while Nepal, Bhutan, Sri Lanka and Maldives are in Group 'B'.

The opening match of the tournament will be held between India and Pakistan today. Nepal will take on Bhutan on Friday.

Once a new government is installed in Kathmandu, deliberations on Nepal-India relations take the center stage of national politics.  However, attempts have been made for a long time to find a permanent solution to the problems seen in Nepal-India relations. Be it the border dispute or the friendship treaty of 1950 and others, there have been a long series of discussions between the two countries. In this context, the Eminent Persons Group’s (EPG) report is currently being discussed in Nepal at a level that has once again achieved par. After the formation of the new government consisting of the Nepali Congress and CPN-UML, when the Minister of Foreign Affairs of Nepal, Arzu Rana Deuba went on an official visit to India, questions were raised about whether Minister Deuba would raise the issue of the EPG report. Same concerns were raised with the erstwhile governments. While releasing a book written by one of the members of EPG, Suryanath Upadhyay; on Sept 7, PM Oli expressed his belief that the Indian prime minister would receive the EPG report, despite the fact that the current government does not appear to have made a formal comment on it. The prime minister’s commentary carries meaning in bilateral matters, whether it is at a book launch or in other casual settings. Importantly, it has extra significance because the current prime minister and India have a turbulent past.

Is it accurate, nevertheless, that this report is being discussed aggressively in Nepal? In what way does this report matter for Nepal? Shall Nepal be adhered to this report? The purpose of this article is to depict how, during the last six years, the EPG report has been seen as an enigma and what path Nepal needs to tread on.

Formation and flux

In the year 2011, when Baburam Bhattarai was the prime minister, during his visit to India, the proposal to form EPG was made public through a joint statement. The purpose of the proposal was to further strengthen multi-dimensional relations between the two countries. The then prime minister of India, Manmohan Singh, also agreed to this. Five years later, in 2016, there was a formal agreement on the formation of EPG. After the announcement of the EPG, the group held a meeting in Kathmandu and formally started the study. The mandates assigned to the EPG were to analyze previous treaties, mostly the 1950’s treaty and agreements between the two countries. In a similar vein, to suggest essential actions to improve the social-economic, political, and cultural ties as well as mutual trust between the two nations.

Likewise, suggesting other areas required for fostering and bolstering friendship between the two countries, as well as institutional frameworks for ties and steps to eradicate cross-border crime while boosting peace, prosperity, and cordiality. The EPG held a total of nine meetings in both countries and approved the report of the EPG in 2018. On behalf of Nepal, Bhekh Bahadur Thapa (coordinator), Rajan Bhattarai, Nilambar Acharya, and Suryanath Upadhyaya were members. Bhagat Singh Kosiari (coordinator), Jayanta Prasad, Mahendra P Lama, and Bhuvanchandra Upreti, members from India, are in the group. The EPG members agreed to submit the approved report to the Prime Minister of India first and then to the Prime Minister of Nepal. After six years, the Indian side has not received the report.

Following the adoption of the 2015 Constitution of Nepal, the UML, led by KP Sharma Oli, formed the government. The Nepali Congress was out of power. The Madhesh-centric parties were agitating because of dissatisfaction with the fast-tracking of the constitution. Nepal and India's political ties were not harmonious. Given this context, the formation of the EPG between Delhi and Kathmandu was created purely for ‘political face saving’ of each side. The agitated Madhes based parties resisted the formation of the EPG without a broader consultation. The EPG was meant to assess the boundary between India and Nepal, but instead it is controlled by leftists, with not a single person from borderland included. The formation of EPG and its procedure seems to be divisive prima facie inside Nepal.

Don’t be stuck; be strategic 

Despite the political and diplomatic ups and downs, there has been no decrease in the intensity of economic exchanges and people-to-people relations between the two countries.

The India-Nepal Treaty of Peace and Friendship  was signed by the last Rana prime minister of Nepal, Mohan Shamsher Jang Bahadur Rana, and the then Indian ambassador to Nepal, Chandreshwor Prasad Narayan Singh on 31 July 1950 and came into force the same day. However, the Treaty of 1950 was engulfed in controversy before its ink had even dried. That controversy kept coming to the surface from time to time. The controversy mostly comes from ‘communist-oriented intellectuals’ and from those who believe in the nationalism shaped by the late king Mahendra. As a result, this issue remained an important issue in the relationship between the two countries. Undoubtedly, the treaty signed by the prime minister from the Nepalese side and the Ambassador from the Indian side reflects prima facie inequality. Similarly, in the report of EPG, Nepal has put forward a proposal that some articles of the peace and friendship treaty of 1950, such as 5, 6, and 7, are not up-to-date.

The way the Nepali members of EPG have been leaking  the contents of the report in various programs from time to time shows how impatient the members are, and it also cannot be said that there will be no influence of other external forces against India while the EPG study is going on. As some of Nepal's former foreign ministers and members of EPG sometimes make irresponsible comments in programs organized by various NGOs and institutions, Nepal should now make this report public, albeit unilaterally. This appears to be strategically weak and a violation of EPG’s privacy. This will only give India a space to act more tactically.

By the time the EPG group is formed and it completes its studies, India has a government led by Narendra Modi. During this period, a government was formed in Nepal under the leadership of KP Sharma Oli, Pushpa Kamal Dahal, or Sher Bahadur Deuba. However, none of the prime ministers have been proven instrumental in handing over the EPG report. In the recent past, UML Chair Oli, who led a powerful and stable government and became the main opposition, raised the issue of EPG from the rostrum in the Parliament, but this report was not prioritized even during Oli's tenure. Now is the time, and like the EPG members, the prime minister who understands the seriousness of the relationship between Nepal and India should discuss the relationship between the two countries better than commenting in informal forums. The jingoism between Nepal and India should be ended by fundamentally solving the enigma of EPG.

Incidentally, the Nepali Congress, the largest party of Nepal, is also in the role of an ally in the journey of driving the country along with the Oli government. The current coalition government can hold talks with the government of India. Finally and above all, it seems relevant that everyone remembers the analogy given by diplomat Madhurman Acharya to India in relation to Nepal. He depicts in his book, Nepal World View: ‘India is a kalpbriksha, the tree that gives you the fruit you wish. If handled carefully, India provides many solutions to Nepal’s problem. But when the wrath of the bigger neighbor becomes difficult to manage, it can be the source of trouble as well.’

@randhirJNK

Nepal is going to export an additional 251 megawatts of electricity to Bihar and Haryana states of India.

 The Central Electricity Authority (CEA) under the Ministry of Power of India has given approval to the Nepal Electricity Authority to export an additional 125.89 megawatts to the state of Haryana and 125 MW to Bihar.

The NEA is currently selling 190 megawatts of electricity to the state of Haryana.

The surplus electricity in Nepal is sold to Bihar and Haryana every year from June to October. Along with this, the amount of electricity to be sold to the state-level distribution companies of India has reached 360 megawatts.

Nepal exported electricity worth Rs 16.93 billion to India in the last fiscal year 2023/24.

The Nepal Electricity Authority (NEA) made an income of Rs 16.93 billion by exporting 1.94 billion units of electricity to India last fiscal year.

NEA has been selling the surplus power at Indian Energy Exchange’s Day ahead and real time market at competitive rate as well as to Indian company NTPC Vidyut Vypar Nigam Limited as per mid-term power agreement.

The NVVN has been selling the power to India's Haryana state. Average rate of exported power is Rs 8.72 per unit.

Power worth Rs 16.81 billion was imported to Nepal last fiscal year, according to NEA.  Around 183 billion units of electricity was imported from India to meet the high demand of electricity at home during winter season after power production decreases from hydropower projects in lack of water flow in rivers and rivulets across the country.

The average rate of power imported during the winter season is Rs 9.17 per unit. Power more than Rs 122.3 million was exported to India as compared to import last fiscal year.

Nepal had imported power worth Rs 19.44 billion in the fiscal year 2022/23 while electricity worth Rs 10.45 billion was exported.

Executive Director of NEA, Kulman Ghising said even though power should be imported to fulfill the domestic demands for a few months of winter season till next few years, the volume of export will also increase.

Newly appointed Prime Minister KP Oli has said that he is ready to cooperate with neighboring country India.

Thanking his Indian counterpart Narendra Modi, Prime Minister Oli said that he is committed to work together.

PM Oli took to social media and said: “I would like to thank you for the best wishes. I am ready to cooperate with you for mutual benefit and to strengthen Nepal-India relations. We can take the historic relationship to a new height.”

Earlier, Indian Prime Minister Modi had congratulated Oli on his appointment as the Prime Minister of Nepal.

The Indian Prime Minister had said that he was ready to work closely to further strengthen the friendship between the two countries.

He emphasized that the two countries should work together for the progress and prosperity of the people.

Cross-border electricity transmission lines with a combined capacity of 1,580 MW have been built and deployed for electricity trade between Nepal and India.

The voltage levels of these transmission lines range from 33 kV to 400 kV, with capacities from 45 MW to 800 MW. The 400 kV Dhalkebar-Muzaffarpur transmission line alone can transmit 800 MW of electricity, according to the Nepal Electricity Authority (NEA).

NEA officials state that Nepal can immediately export up to 1,500 MW if India grants approval. Currently, NEA has permission to export 690 MW of hydropower to India. India has allowed Nepal to export power generated by Chilime, Solu Khola, Kabeli B-1, Likhu-4, Lower Modi, Solu-Dudhkosi, Dordi Khola, Upper Kalanga Gad, Upper Chamelia, Solu Khola, Super Madi, Upper Balephi 'A' and Upper Chaku 'A', among other projects.

NEA has been selling energy in the day-ahead market of the Indian Electricity Exchange (IEX) and has signed a five-year agreement to sell 200 MW of hydropower to the Indian state-owned company NTPC Vidyut Vyapar Nigam Ltd.

The Dhalkebar-Muzaffarpur transmission line is the only high-capacity cross-border line operational at present, with a maximum capacity of 2,000 MW. However, the two countries have agreed to transmit only up to 800 MW from this line.

Several other cross-border lines, including two 132 kV Kataiya-Kusbaha and Kataiya-Kusbaha II with capacity of 120 MW and 160 MW, respectively, the 132 kV Raxaul-Parwanipur (160 MW), Ramnagar-Gandak (65 MW), Mainiya-Sampatiya (160 MW), and Tanakpur-Mahendranagar (70 MW), are also in operation.

According to NEA officials, Nepal and India will have infrastructure to support transmission of 12,700 MW by 20230. Many transmission line projects are under different stages of construction. The 400 kV Dhalkebar-Sitamarhi transmission line with a capacity of 2,500 MW is one such project. The transmission line, which is dedicated to export power generated by the Arun III hydropower project, is expected to come into operation by 2025/26. The 132 kV Nepalgunj-Nanpara with a capacity of 200 MW is expected to be operational by 2025/26. 

Other notable 400 kV cross-border transmission line projects include New Butwal-Gorakhpur, Inaruwa-Purnea and Kohalpur-Lucknow. All these lines can transmit up to 2,500 MW.

NEA officials say Nepal has requested permission to export 1,200 MW this year. 

Nepal is in an energy surplus situation during wet months. The country, however, faces a shortfall of energy during the dry season when power generation by its run-of-river (RoR) projects shrink to nearly a third of installed capacity. This necessitates import from India during the dry months even though energy goes to waste during the wet months.

Talks are underway to export 40 MW of electricity from Nepal to Bangladesh using Indian energy infrastructure. Officials from Nepal and Bangladesh believe that the success of this power agreement could open doors for more energy cooperation between the two countries in the future.

Indian Ambassador to Nepal Naveen Srivastava and Lomanthang Rural
Municipality Chairman Tasi Nharbu Gurung laid a foundation stone for the construction of dormitory building for Lowo Nyiphug Namdrol Norbuling Monastic Schoo.

The dormitory is being built with the Government of India’s financial assistance at the project cost of Rs 41.40 million under ‘Nepal-India Development Cooperation’.

Political representatives, government officials, social workers, representatives of the Monastic school management were also present on this occasion, reads a statement issued by the Indian Embassy in Kathmandu. 

The Government of India grant under ‘Nepal-India Development Cooperation’ is being utilized for the construction of two floors dormitory building with other facilities for this Monastic school.

The project is taken up as a High Impact Community Development Project (HICDP), under an agreement between the Government of India and Government of Nepal.

This project is being implemented through Lomanthang Rural Municipality, Mustang. The project is an important example of the robust development partnership between India and Nepal, according to the statement.

Chairman, Lomanthang Rural Municipality and Chairman, Lowo Nyiphug Namdrol Norbuling Monastic School and political representatives in their remarks appreciated the continued developmental support of the Government of India in upliftment of the people of Nepal in priority sectors.      

The new building would be useful in providing better education and accommodation facilities to the students of Lowo Nyiphug Namdrol Norbuling Monastic School in Lomanthang Rural Municipality, Mustang and would create an improved environment for learning as well as contribute to the development of the education and religious care and helping in preserving their culture and tradition in this region. 

Since 2003, the Government of India has taken up over 551 HICDPs in Nepal in various sectors and has completed 490 projects.

Amongst these, 59 projects are in Gandaki Province in various sectors, including         17 projects in Mustang.

In addition to these,the Government of India has gifted 1009 ambulances and 300 school buses to various hospitals, health posts and educational institutions in Nepal.  

Amongst these, 119 ambulances and 40 school buses have been gifted in Gandaki Province, including 11 ambulances and five school buses provided in Mustang district. 

As close neighbours, India and Nepal share wide-ranging and multi-sectoral cooperation.

 The implementation of HICDPs reflects the continued support of the Government of India in bolstering the efforts of the Government of Nepal in upliftment of its people, augmenting infrastructure in the field of priority sectors.  
 

The Indian electorate has evolved to a point that it might be incorrect to assume that the average Indian voter is not affected by foreign policy as a political issue. Foreign policy has been an elite discussion mostly with a class angle attached to it, where it used to dominate in urban centers only. But it has been observed since the last parliamentary elections held in 2019 that foreign policy has been traveling from elite dinner table conversations to a much more democratized space. This is highly observant in the campaigning style of the political players where Bharatiya Janata Party has juiced out every opportunity of projecting India’s rising image in the globe through its ultra successful diplomatic victory in the recently held G20 Summit. The leading opposition parties like Indian National Congress, also acknowledges the power of foreign policy and thus reflects its vision for India in multiple pages of its election manifesto, elaborating on its foreign policy and security goals.

Winning for the third term under Narendra Modi, Bharatiya Janata Party has a strong track record with respect to foreign policy that it is showcasing to its electorate. The growing importance of foreign policy has to be understood in the context of India’s strategic positionality in the global world order and how an average Indian has reacted to this rising brand of India.

Domestic vs foreign policy agendas

If we examine other countries, this trend will not remain unique to just India, for instance public opinion regarding foreign policy has affected electoral results, but mostly in conflict periods. With the single exception of Atal Bihari Vajyaee, foreign policy and national security concerns have been leveraged as equivalent to domestic political agendas. India’s 1998 nuclear test was emphasized during his political campaign, quite in sync with Modi’s post 2014 election campaigning, which had significant emphasis given to public diplomacy as well his presence in high-level visits all across the globe. A 2023 survey done by Lokniti CSDS and NDTV showed that 63 percent of respondents reported that India’s global status has risen since Modi assumed office. While it is unclear whether foreign policy and the perception of India on the global stage offer greater electoral benefits than domestic issues like inflation and development, foreign policy plays a significant role in influencing public sentiment, casually called the “mood” of the elections.

The Indian brand

India’s journey in the global arena is not restricted to its trajectory post 2014. Prior to that, India has been playing a critical role in one of the most powerful multilateral setups, but what remains striking is its shift from being a “balancing” power to a “ leading one”, as argued by Milan Vaishnav and Caroline Mallory. While India’s multipolar setup is not new, its rise as a principal agent in this multipolar world is definitely new. Despite western criticism and pressure, India kept purchasing Russian oil since the war in Ukraine and has maintained close ties with a natural ally like Moscow. Last June, at a panel in Bratislava, External Affairs Minister Jaishankar faced questions about this controversial choice, and he responded.” Europe has to grow out of the mindset that Europe’s problems are the world’s problems, but the world’s problems are not Europe’s problems”. While diplomats like Ashok Kantha argue that India’s foreign policy has not changed drastically, but its style has changed, the above-mentioned statement from an external affairs minister, which later garnered millions of views in social media, projects how India’s robust foreign policy choices have become great electoral brownie points.

The public display of India’s contemporary style of  foreign policy has another significant feature i.e. criticizing western standards of benchmarking democracy and western media in projecting an opinion on its national issues. Although Indo-US relations remain strong, India’s position in this multipolar swing set remains crucial in making sense of its strategic autonomy. While being criticized for maintaining relations with Russia, during the ongoing war against Ukraine, and alleged assassination allegations of a Khalistani separatist in a foreign land, the Indian messaging aligns with its ‘national sentiment’ of choosing what is right for them, rather than what is deemed to be right by the West. This is also consistent with a recent announcement by the Modi government, that India will come up with a homegrown democracy ratings index which is supposed to reflect Indian narratives regarding its democratic principles and practice rather than western rankings.

Conclusion

It is to be noted that the changing nature of the global order has a huge impact on the way foreign policy is growing as an election topic in democracies like India. With the continuous rise of powers like China, the United States has been increasingly being questioned about its legitimacy of being the strategic security provider of the world. With conflict-stricken Eurasia and currently even the Middle East, China seems to be heavily invested in creating an alternative to the west-dominated liberal international order. The fragmentation of this order, however, has given a good chance for rising powers like India, which want to position themselves carefully yet robustly. India’s growing economy, diplomatic positions in multilateral bodies and its overall rising image, is testament to this evolution of this robust foreign policy strategy. And this has found a way back home, where the government has projected the idea of “Amrit Kaal”, which is quite simply opening up the grandeur nation to the world, from “twelve centuries of slavery”. 

However, this growing importance of foreign policy implications in national elections requires a much more nuanced inquiry. As argued by Vipin Narang, it seems unclear as to how the foreign policy successes have a positive impact in projecting a government’s global stance, but it does not suffer from any downside from supposedly contested foreign policy failures, for instance Chinese incursions in the LAC. In addition, it can be argued that foreign policy might just be an important impact factor in influencing national sentiments, but it needs to be balanced carefully in order to not risk India’s relations with international players, just for electoral benefits back home.

The author is an Assistant Professor of Political Science in Manav Rachna International Institute of Research and Studies. He is currently pursuing his doctorate from National University of Juridical Sciences, India specializing in South Asian Politics and Conflict Studies

Prime Minister Pushpa Kamal Dahal has reached New Delhi, India to take part in the oath-taking ceremony of Prime Minister-elect Narendra Modi.

Upon reaching New Delhi-based Indira Gandhi International Airport today, Prime Minister Dahal was received by special representatives of the Government of India, according to the Ministry of External Affairs, India.

Modi, who has been appointed the Prime Minister of India for the third term on behalf of the Bharatiya Janata Party, is scheduled to take the oath of office and secrecy this evening.

Following the swearing-in ceremony of Modi, Prime Minister Dahal will meet his Indian counterpart, according to the Nepali Embassy in New Delhi.

The Prime Minister is accompanied by his daughter and private secretary Ganga Dahal, Minister for Law, Justice, and Parliamentary Affairs Padam Giri, Foreign Secretary Sewa Lamsal, and other senior government officials during the visit. He is scheduled to return home on Monday.

Asian Media Information and Communication Centre (AMIC) representatives from Nepal and India held a semi-formal discussion on Asia as a Knowledge Sharing Society in Kathmandu on Tuesday, aligning with AMIC's 30th Annual Conference theme taking place in September 2024.

The discussion was witnessed by 29 participants from various institutions, including colleges, media houses, researchers, scholars, and academicians.

Laxman Datt Pant, AMIC's representative in Nepal, presented an overview of AMIC and opportunities for research in communications and media.

Pant stated that AMIC is an excellent platform for showcasing knowledge in various fields of media and research. "With proper use of AMIC, media researchers can contribute to and benefit the research field with a far-reaching impact."

Similarly, Dr Chandrabhanu Pattanayak, an AMIC representative in India and a well-known media academician, researcher, and journal editor, discussed Asia's role in global knowledge and information exchange.

According to Pattanayak, there is a reverse paradigm in Asia versus the West.

"The West, on the one hand, emphasizes lingua franca, whereas the East or Asia emphasizes multilingualism, and, surprisingly, there have been no communication breaks or gaps between the countries," he stated.

Dr Aditya Shukla, an Indian academic, expressed his great pleasure at the opportunity to discuss such important issues. He said, “AMIC is doing tremendous work in the knowledge sharing field and establishing Asia as a knowledge hub. Particularly, the program on Asia as a knowledge sharing society was well organized and programs like such can explore the potential of Asia as a knowledge hub.”

He also stated, "If Asian countries come together and emphasize and share Asian knowledge on a high level. We can position our region as a knowledge hub. Because we are completely different from the West, and we have histories with various philosophies that have yet to be fully explored."

Shreeman Sharma, Research Uptake Manager at HERD International, suggested that AMIC should help in enhancing the capacity of researchers and institutions in Nepal. This is an appropriate time to prioritize Nepal's media and communication research needs, he added. 

The discussion was attended by Sanjogita Mishra, founder and director of the Institute of Knowledge Society, Chun Gurung, Journalism Faculty Lead at St. Xavier College,  Sweta Singh from All India Radio and DD India,  Yam Bahadur Dura, a faculty member at Madan Bhandari Memorial College, Dr. Shree Ram Khanal, Head of Journalism Department at Gramin Adarsha College, Umesh Pokhrel, a media researcher, Jhabindra Bhusal, Chief Officer at Press Council Nepal, Neha Sharma, an AMIC member, Shalik Ram Subedi from Nepal Television and a number of media scholars interested in research and media development.

Participants inquired about and expressed interest in AMIC's work, as well as suggestions for how it can broaden its scope to help elevate the Asian perspective in Nepal through its rigorous work. They also discussed how Nepalese scholars can join the AMIC to contribute to and disseminate Asian knowledge throughout the world.

The government has taken a new strategy to promote religious places.

Presenting the annual budget for the upcoming fiscal year 2024/25 in the federal Parliament on Tuesday, Finance Minister Barshaman Pun said that the government is to operate transport services from the Nepal-India border to visit Pashupatinath, Swargadwari, and Muktinath temple.

He said that the budget has been arranged to promote tourism.  

India and Nepal are deeply connected through natural resources, cultural heritage, and the shared philosophy of Sanatan Dharma. Their integrated people-to-people relations stand as a testament to a living culture and heritage. The significant trade and commerce through open border check posts underscore their economic relationship and its potential for growth via Indian territory.

Despite these factors defining their geo-strategic relationship, the India-Nepal dynamic hasn't seen the bold transformation observed in India-Bangladesh relations. Both Bangladesh and Nepal are set to graduate from Least Developed Country (LDC) status in 2026. Attention is now on their preparedness and ability to leverage opportunities with regional leaders like India, which is on track to become the world’s fourth-largest economy. 

The post-Covid Bangladesh showcases an economic success story, collaborating closely with India. The development of markets, demographic dividends, institutional growth, the Matarbari deep-sea port, and linking industrial value chains with North-East India are testaments to Bangladesh’s political will and strategic alignment with India, garnering support from Prime Minister Narendra Modi. This robust partnership has led to Bangladesh’s thriving supply chains, GDP growth, and overall progress.

In contrast, Nepal’s political instability hampers its potential. Since the general elections of November 2022, the government has been formed three times, with a fourth vote of confidence for the prime minister imminent. Mainstream political parties seem more focused on power struggles than on harnessing Nepal’s economic potential. A pressing concern is the exodus of Nepali youth seeking opportunities abroad, reflecting a domestic business environment marked by stagnation and lack of investment. The phenomenon of "shutter down" businesses indicates widespread disillusionment.

A critical question needs to be asked as to why there is a domestic lull, why the prime minister hasn’t called for an emergency meeting to discuss closure of businesses, up-and-running businesses fear of going bust, and young population leaving the country in droves. 

Despite these challenges, Nepal recently hosted the Third Investment Summit in Kathmandu on April 28-29, featuring over 50 countries, 800 foreign delegates, and 2200 domestic leaders. The summit began with enthusiastic statements from international diplomatic leaders and investment partners. However, domestic business leaders appeared detached, awaiting substantial reforms in domestic laws and regulations. The reliance on ordinances for partial legal amendments undermines sustainable growth and highlights the fragility of Nepal’s business ecosystem.

The Confederation of Nepalese Industries (CNI), one of the chambers of commerce, had called for amendments to 28 laws and regulations to encourage businesses and investors, but the government addressed only a part of their demand through ordinances just ahead of the summit. Ordinance-driven changes mar the momentum of sustainable growth and cannot be seen as a constructive step. 

Despite the three mainstream political leaders—Pushpa Kamal Dahal, Sher Bahadur Deuba and KP Sharma Oli—speaking in one voice about political consensus on Nepal’s readiness to receive foreign investment, the ordinance route amendments betrays the fragility of the country’s business ecosystem.

The summit did showcase success stories, notably India’s steady commitment and investment. Indian Minister Piyush Goyal’s endorsement of global investment in Nepal highlighted the potential for shared progress. Nepali leaders acknowledged India’s role in helping Nepal meet its Net Zero Commitments and assisting with clean energy exports. The potential export of clean energy to Bangladesh via India and the opening of Bangladeshi ports through North East India could be transformative for Nepal. However, realizing these opportunities requires robust connectivity, infrastructural development, a conducive business environment, and unrestricted access to resources and talent.

The question remains how Nepal’s political leadership will capitalize on the trust and strategic partnership with India to foster domestic growth and attract foreign investment. The future of Nepal’s economic and regional integration hinges on its ability to create a stable, business-friendly environment supported by both domestic and regional players.

New Nepal political map 2020 

On 25 April 2024, Nepal’s Cabinet approved printing of the new 100 rupee note with the new Nepal political map. The decision was not made public until 3 May 2024. 

Let’s relook at the recent developments relating to the India-Nepal boundary row: 

1. Nearly 98 percent of the boundary between India and Nepal has already been delineated.

2. In a unilateral move, bypassing the existing bilateral mechanism of boundary resolution with India, Nepal’s Parliament unanimously approved the new Nepal Political Map in June 2020 tabled by then KP Sharma Oli-led government.  

3. The new Nepal Map included the territories of Lipulekh, Limpiyadhura and Kalapani, the point of contention between India and Nepal.

4. When the Lower House of Nepal’s Parliament approved the new Map, India conveyed its readiness to talk and noted “that the onus is on the K P Sharma Oli government in Nepal to create a “positive and conducive atmosphere” for talks to resolve the row over Kalapani-Lipulekh region.”

5. Nepal overlooked Indian Statement of openness to talk after the Lower House approval and went ahead and tabled instead at the Upper House which then approved unanimously.

6. In the same year 2020, Nepal minted new coins Rs 1 and Rs 2 Coins with New Nepal Map. Similarly, there were news updates that the new Map was introduced in the school curriculum.

7. Repeatedly, the Indian Government expressed readiness to discuss the boundary issue under the existing bilateral framework. The results of the progress under the bilateral mechanism on this issue are not evident enough on social media.

8. In the meantime, the boundary issues did not stall both sides from pursuing the shared progress agenda.

9. During the Joint Presser of Prime Minister Dahal and Prime Minister Narendra Modi on 1 June 2023 at the time of Nepal’s Prime Minister Dahal’s visit to India, Prime Minister Modi said, “We will continue to work to take our relations to the height of the Himalayas. And in this spirit, we will resolve all the issues, be it the boundary issue or any other issue. I am happy to share that the partnership between India and Nepal has been a super hit.” The collaborative spirit also led to the mega announcement of Nepal exporting 10,000 MW to India over a period of 10 years. Such a cross-border energy trade partnership is expected to correct the trade deficit between India-Nepal and also foreseen to pave the way for Nepal’s clean energy export to Bangladesh and others in the long term.

10. In March 2024, the third time government post 2022 General Elections formed in Nepal (with five coalition partners namely CPN (Maoist Centre), NCP (UML), RSP, CPN (US), JSP under the prime ministership of Dahal. In specific, the coalition partners announce their “Minimum Policy Priority and Common Program” which includes “to further strengthen the geographical integrity, sovereignty, independence and freedom of Nepal, to advance effective diplomatic efforts to take back Nepali lands such as Limpiyadhura, Lipulekh, Kalapani, Susta, and to effectively manage the border”.

11. On 25 April, 2024, the Cabinet of Nepal Government passed the decision to print new 100 rupees notes with the new Nepal Map. The Cabinet decision was announced on 3 May 2024. 

The week in Nepal-India relations 

Let’s take a closer look at the period April 25–May 3 in Nepal-India relations:

1. The decision of the Cabinet meeting held on April 25 was made public only on May 3.

2. Some of the key events during the period April 25-May 3 included the Third Nepal Investment Summit held on April 28-29 which witnessed mega success stories on Indian Investment into Nepal; official Visit of G Murmu, the Comptroller Auditor General of India and signing of MoU with Toyam Raya, the Auditor General of Nepal on enhancing cooperation between the two Supreme Audit Institutions on May 2; and on May 3, the Chief Justice of India, DY Chandrachud arrived in Kathmandu for a 3-day visit at the invitation of Chief Justice of Nepal, Bishwambhar Prasad Shrestha.

Conclusions

In view of the above developments in India-Nepal relations, including a peek into the key week with announcements demonstrating political will, government decisions, high-level visits, success stories in multifaceted India-Nepal relations leaves me with following 10 conclusions:

1. India remains by the far the most strategic partner for Nepal, be it due to civilizational linkages, integrated People-to-People lives, largest trade partnership and importantly can help Nepal achieve its Net Zero Commitments by facilitating the export of clean energy from Nepal. India is also a key regional leader that can influence, support and navigate any global agenda for securing and safeguarding Mountain, River and Sea economies between Himalayas to Bay of Bengal. The high-level visits from Judiciary, Constitutional Agencies, Business Leaders show the spirit of collaboration and partnership as foreseen by Prime Minister Modi to take the India-Nepal relations to the “height of Himalayas” earlier at the Joint presser with Prime Minister Dahal in June 2023.

2. There is a boundary dispute between Nepal and India which calls for diplomacy and dialogue without any further delay. The Political Statements by Prime Minister Narendra Modi and Prime Minister Dahal have set the track in motion which must be followed in letter and spirit.

3. In the wake of the above, the political leadership in Nepal appears vague and unclear as to what they want by changing the goalposts year upon year with their most strategic partner. How does one reconcile the same Prime Minister Dahal at the Presser with Prime Minister Modi in June 2023 speaking of the “solid foundation built on the one hand by rich tradition of civilizational, cultural and socio-economic linkage and on the other by the firm commitment of the two counties to the time-tested principle of sovereign equality, mutual respect, understanding and cooperation”, acknowledging Indian investment in Nepal as a keynote success story at the Nepal Investment Summit on April 2024 while his cabinet then approves new Rupees 100 Banknotes with “unilateral” new Map and announces in May 2024. Is there leadership void to pursue National Issues and development agenda in Nepal? If Bangladesh can achieve both with Neighbourhood First spirit, where does Nepal default and why?

4. One may also question here how effectively did the Nepal Government evaluate India-Nepal partnership potential during the launch of “minimum policy priority and common program” in March 2024. Did Prime Minister Dahal convince his coalition partners of the understanding achieved with India and how he intends to leverage this relationship with Prime Minister Modi for the welfare of the people of Nepal. Prime Minister Dahal could have focused on seeking investment and support in technological sector, engagement with Indian Corporate as Tech Mahindra, TCS, Infosys, Wipro for the youth of Nepal, agreed for Skills related investments along the borders, sought Indian support for three AIIMS level Healthcare Institutions in Nepal (West, Centre and East) and secured a guaranteed seat with prime educational institutions as IITs/ IIMs/ors. for the top brightest students of Nepal.

5. Did Prime Minister Dahal fall for an agenda of “nationalism” for his own survival? Or did the coalition partners like former Prime Minister KP Sharma Oli, whose national appeal thrives on call for “nationalism”, dissuaded him from the development agenda for the people of Nepal? The two communist leaders of Nepal have taken each other for a ride and still continue to do so at the cost of National Interest. In the frenzy of domestic vote bank scoring and outsmarting each other, both have jeopardized the gains during their respective tenure with India which they could have leveraged for welfare of Nepali people and thus strengthened their foothold in Nepal.

6. Now let’s turn towards India—the Indian media frenzy with Nepal’s Cabinet decision of new banknotes with new Nepal map was dramatic and sensationalism driven. Their overkill of imagination can be seen with two potential conclusions, a) Nepal is hostile towards India and India-Nepal relation at its worst, b) Nepal is in China’s lap and that the communist leaders are being controlled and manipulated by China. Unless and until, the importance of domestic mileage in Nepali politics is understood and appreciated, such hasty conclusions will lead to more provocation and not resolution.

7. To begin with, one shouldn’t forget that Nepal’s Parliament already approved the New Nepal Map in 2020 and thus its implementation is an internal matter of Nepal. Nepal had already minted Nepali Coins of denomination Rs 1 and Rs 2 in 2020. Whether they decide and mint/ print 10/20/100 or more is an internal matter! The issue should have been the timely resolution after the statement of Prime Minister Modi at the Joint Presser in June 2023. Media overaction with China linkages mar dialogue and diplomacy in India as in Nepal. 

8. Indian media and Nepali media should have mentioned about the embarrassment caused to the leadership at the Judiciary and Constitutional Agencies of both India and Nepal when such a Cabinet decision was made public. (Referring to the visits of CAG Murmu and CJI DY Chandrachud to Nepal in May 2024)

9. Last but not least, while India remains focused on people-to-people and economic relations in Nepal and is also well aware of the domestic politics compulsions driving behavior of the Nepali leaders, it must therefore work with rigor to remove the irritants in matters of national consideration to Nepal. It is imperative that India is seen as more indifferent to political constitutions. The pace of developments and economic interventions from India should be driven by welfare and progress of Nepali people. Access to essentials such as electricity, onions, tea or trade and commerce related approvals shouldn’t become a one step forward and two steps back decision. It is also time to upscale the HICDP intervention to move away from school buildings to big ticket investment in skills and vocational institutes, healthcare institutions at the Province level and IIT/IIM at the capital level. It is only timely and relevant that Modi 3.0 has a reinvigorated Nepal policy that takes Nepal along in #Amritkaal and not let domestic politics compulsions of Nepal dent the spirit of Neighbourhood First

10. The two countries are duty bound to preserve and nurture their unique shared heritage of Vasudhaiva Kutumbakam where human and nature’s coexistence can be seen as a way of life in a family and society, in the decision making and governance at the State level. It is imperative for both India-Nepal to recognize their richness of Sanatan Dharma and strive together to protect and nurture its core principles of plurality and freedom of expression. Man-made political boundaries do not and cannot split the custodians of Dharma—as seen in the lives of SitaRam or Machendranath and Gorakhnath, or in the journey of Buddha.

It is time to correct the course and revive Kathmandu to Kashi understanding before it’s too late. 

The author is New Delhi-based financial, geopolitical and security analyst. Views are personal