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Deeply ingrained historical, cultural, and geographical links define the civilizational relationship between India and Nepal. Formally expressed via the 1950 Treaty of Peace and Friendship, this bilateral engagement has provided an unmatched degree of permeability between two sovereign governments, enabling the free flow of people and products across an open border spanning 1,770 kilometres. Notwithstanding these apparently tight connections, the relationship has been characterized by occasional conflict, mutual misunderstanding, and diplomatic congestion. Although physical closeness and cultural familiarity should ideally promote smooth collaboration, in practice, India-Nepal ties are nevertheless delicate and vulnerable to both internal political changes and regional forces. This article aims to investigate alternative answers based on existing frameworks and empirical observations as well as to grasp the structural and dependent elements causing these obstructions.

The territorial dispute over Kalapani, Limpiyadhura, and Lipulekh is among the most delicate and persistent causes of disagreements. When India published an updated political map including the disputed areas in 2019, this problem became much more severe. Nepal responded with its map and a constitutional change, thereby supporting its assertions. In Nepal, this move stoked nationalistic fervor and turned into a gathering place for claiming historical identity and sovereignty. It shows how closely conflicts over territory—especially in post-colonial states—are related to issues of nationhood and historical recognition rather than just legal or administrative ones.

This escalation also emphasizes the more significant trend in nationalist politics affecting bilateral ties. Domestically, political players in both India and Nepal have been turning more and more to foreign policy issues to inspire popular support. In Nepal, criticism of India often finds prosperous footing in nationalist narratives that show India as an obstructive force. Although these stories are not necessarily based on reality, their resonance comes from past grievances and the more extensive background of imbalance. In India, however, there is a tendency in strategic circles to see Nepal’s actions as either reactive or shaped by outside players. When free from diplomatic communication, such opinions may harden policy stances and limit the area for compromise.

Another significant bottleneck in the relationship is Nepal’s evolving engagement with China. China has significantly expanded its presence in Nepal during the last ten years by means of diplomatic outreach, economic support, and infrastructural projects. Seeing a chance to diversify its economic alliances and lessen reliance on India, Nepal has accepted China’s Belt and Road Initiative (BRI). Nevertheless, it did not bore much fruit to Nepal. In New Delhi, where worries about Chinese intrusion in the Himalayan area have developed, this realignment has not gone unseen. From Kathmandu's vantage point, interacting with China is a hedging and strategic autonomy-boosting tactic. It aims to strike a balance between two big powers, thereby preventing too much reliance on one.

This captures the dynamics of small-state conduct in international relations, especially the idea of ‘soft balancing’, in which smaller governments try to increase their autonomy by including many partners without open conflict. Nepal’s China outreach also shows an effort to change its growth story, presenting itself not only as a dependent neighbour but also as a growing transit centre between India and China. This change for India calls for a review of its strategic posture. India would be better off improving its attractiveness with dependable infrastructure delivery, open project management, and culturally sensitive diplomacy with Kathmandu.

India has shown both technical know-how and readiness to co-develop responses in water resource cooperation. The great hydropower potential of Nepal offers the area transforming prospects. India has funded significant hydropower projects such as Arun III and Upper Karnali, therefore offering not just financial help but also grid connection and market access. Some cooperative ventures have delays that result not from a lack of purpose but rather from the complexities of transboundary water management. In renegotiating agreements, India has shown willingness and flexibility to guarantee that Nepali issues are resolved and profits are fairly distributed. 

The bilateral dynamic is powerfully shaped by ethnic politics as well, especially in connection to the Madhesi community in Nepal’s Tarai area. Historically excluded from Nepal’s political mainstream, the Madhesis have significant cultural and family links to those living in northern regions of India. Their demands for linguistic rights, federal reorganisation, and proportional representation have set off periodic outbreaks of internal strife. The complexity results from these internal issues permeating bilateral relations. While India views itself as supporting democratic values and minority rights, Nepal has seen India’s comments of support for Madhesi’s inclusion as an intervention in domestic affairs. This sensitive problem emphasises how foreign policy and home politics interact. After the civil war, state-building initiatives in Nepal have required a reconsideration of citizenship, identity, and representation. Cross-border ethnic connections can result in hopes of moral or diplomatic assistance in India. Handling these calls for great care. India needs to stress quiet diplomacy and people-to-person interaction in this case.

With these stacked difficulties, which paths may be followed for a more steady and cooperative relationship? First, bilateral communication has to be institutionalised right now. Although ad hoc conferences and high-level visits are valuable, they cannot replace organised systems of participation. Joint Commissions’ regular meetings, strategic conversations between foreign secretaries, and the rebirth of bilateral working groups on trade, water, and energy can help to provide continuity and lower misperceptions. Scholarly research on international regimes emphasises how crucial ongoing engagement is to building confidence and lowering diplomatic transaction costs.

Second, economic interconnection has to be extended and strengthened beyond conventional industries. In recent years, India has made admirable progress in building cross-border rail connections, starting a petroleum pipeline from Motihari to Amlekhgunj, and setting integrated checkpoints. Other areas like digital infrastructure, educational exchanges, and tourism should have these ideas expanded and duplicated. Economic cooperation should be considered as a vehicle for the empowerment of Nepal’s development aspirations as much as a tool for influence. Here, theories of complicated interdependence are informative, stressing the variety of channels and the role non-state players play in maintaining peaceful interactions.

Cooperation on water resources calls for a paradigmatic change. Pursues of joint development should centre on environmental sustainability, equality, and openness. Project agreements and bilateral treaties have to be negotiated inclusively with local populations and interested parties. Establishing dispute-resolution systems and cooperative environmental assessment agencies would also help to build confidence. Other areas, including the Mekong basin, where transboundary cooperation is controlled by multi-stakeholder systems balancing growth with sustainability, might provide lessons as well.

Ultimately, structural inequalities, changing geopolitical alignments, and deeply ingrained political sensitivity restrict India-Nepal relations, even if they have traditionally been close and profoundly nuanced. Though they are not insurmountable, the obstacles in the way of collaboration call for a change in institutional involvement, policy instruments, and attitude. Mutual respect, strategic empathy, and an awareness of Nepal’s sovereign goals will form the foundation of a forward-looking, sustainable cooperation. Through cooperative development, inclusive diplomacy, and long-term trust-building, India and Nepal can overcome regular difficulties and create a robust and future-oriented alliance.

Memorandum of Understandings (MoUs) have been signed for undertaking 10 High Impact Community Development Projects (HICDPs) in Nepal under the grant assistance of Government of India in Education, Health, and Culture Sectors at a total cost of Rs 625 million.

The Embassy of India, Kathmandu and the Ministry of Federal Affairs and General Administration, Government of Nepal and Project Implementing Agencies of Government of Nepal signed the MoUs on Tuesday, the Embassy of India, Kathmandu stated in a press release.

These 10 projects include construction of Sanba Secondary School, Mikuwa Khola Rural Municipality, Taplejung, Koshi Province; construction of Ngagyur Nyngma Palyul Dhongag Chholing Monastery, Likhu-Pike Rural Municipality, Solukhumbu, Koshi Province;  construction of Nepal-Bharat Maitri E Library at Shree Rastriya Primary School, Bharatpur Metropolitan City, Chitwan, Bagmati Province;  construction of Health Post Building, Ward-3, Indrawati Rural Municipality, Sindhupalchowk, Bagmati Province; and construction of Health Post Building, Ward-6, Indrawati Rural Municipality, Sindhupalchowk, Bagmati Province.

Similarly, MoUs were also signed for construction of Ninyukharka Secondary School, Dhurkot Rural Municipality, Gulmi, Lumbini Province; construction of Naya Gaun Secondary School Building, Butwal Sub-Metropolitan City, Rupandehi, Lumbini Province; construction of Nepal-Bharat Maitri Hospital Building, Chankheli Rural Municipality, Humla, Karnali Province; construction of Siddhanath Secondary School, Dhangadhi Sub-Metropolitan City, Kailali, Sudurpashchim Province; and construction of Shree Satyavadi Secondary School Admin and  Hostel Buildings, Jayaprithivi Municipality, Bajhang, Sudurpashchim Province.

These HICDPs shall be implemented through Local authorities of Government of Nepal i.e., Metropolitan City, Sub-Metropolitan City, Municipalities and Rural Municipalities, according to the Embassy of India.

The implementation of these projects will help provide better educational, healthcare and cultural facilities to the people of Nepal.

Since 2003, India has taken up over 573 HICDPs in Nepal, including the 10 projects whose MoUs have been signed today, and has completed 495 projects in the areas of education, health, road and bridges, river training, drinking water, electrification,  irrigation, culture, social welfare and creation of other public utilities across all 7 provinces of Nepal at the grassroot level. The remaining projects are ongoing at different stages. 

Russian President Vladimir Putin will visit India soon, as Moscow makes arrangements for his trip, the first since the start of the Ukraine war, Firstpost reported.

Russian Foreign Minister Sergey Lavrov announced the travel on Wednesday during a video conference, stating, "President Vladimir Putin has accepted an offer to come from the Indian head of government. The Russian president is currently preparing to visit the Republic of India."He also stated that Russia is working to develop bilateral connections with major world powers such as India, with whom the country has a privileged strategic partnership,according to the Firstpost.

Earlier this week, Lavrov emphasized the contributions of India, China, and other BRICS and SCO members to the development of a multipolar world.

King Prithvi Narayan Shah, the founder of modern Nepal, once stated, ‘Nepal is a yam between two boulders.’ This statement has become an evergreen mantra for understanding and managing Nepal’s foreign affairs. According to him, the ‘two boulders’ are India and China, and Nepal’s strategy has always been the ‘strategy for survival,’ as rightly pointed out by Leo E Rose. In realpolitik, all strategies are inherited within the geography of the country—‘Geography is the mother of strategy’. Secondly, geography stands as the most prime factor in implementing the foreign policy of any state because, in most cases, it is ‘fixed’.

Within Nepal, the sentiment of the people has always been a fear of two dynamics: the fear of foreign intervention and natural disasters/earthquakes. To elaborate further, Nepal shares close ties with India in many aspects, from geography to politics, economy, and culture. People in Nepal often find themselves in a forced position to balance ‘sovereignty and integration’ with India. At the same time, China is no longer an ‘inactive’ force in global politics and has an interest in South Asia. That ‘interest’ is sometimes ‘hard’ too. As a Nepali, the fear of being caught in the ‘radar’ of these giants, including the impact of extra-regional powers like the US, can’t be ignored. Nepal resides in an earthquake-prone area, and the foundation of every development must focus on earthquake resilience. These two ‘fears’ have been haunting Nepal and its people for quite a long time.

Power centers have a ‘natural’ interest in the country located between two giants with a comparatively low level of governance efficiency and societal development, allowing foreign aid  ‘projects’ to flourish, thanks to an unfavorable investment climate that curtails FDI in the country.

Nepal-India development partnership

Since the 1990s, India’s foreign aid to Nepal has been largely guided by the Gujral Doctrine. The doctrine states that, “India does not ask for reciprocity with its neighbors like Nepal, Bangladesh, Bhutan, the Maldives and Sri Lanka. Instead, it gives and accommodates what can be given in good faith and trust.” However, as a neighbor, India has not effectively translated these narratives with its smaller neighbors, resulting in tensions from time to time.

When Indian Prime Minister Narendra Modi assumed power in 2014, he endorsed the Neighborhood First policy, making five trips to Nepal—unprecedented in the past 17 years for any Indian Prime Minister. These visits symbolized strong ties and demonstrated a commitment to collaborating with Nepal based on its development needs. Since May 2014, there have been 17 exchanges at the level of Head of State/Head of Government. Aligned with the ‘Neighborhood First’ policy, Indian Prime Minister Modi has visited Nepal five times, and the Nepali Prime Minister visited India eight times since Jan 2015.

Since 1954, after the establishment of the Indian Aid Mission in Nepal, India has supported Nepal in the development of major infrastructure projects, including the construction of Tribhuvan International Airport, water supply systems and hospitals.

After India’s economic blockade in 2015, India has been actively involved in the development of connectivity with Nepal through construction of Integrated Check Posts and Railways in Nepal. To facilitate the construction of two broad-gauge cross-border railway links—Jayanagar-Bardibas and Jogbani-Biratnagar—financial and technical assistance was provided to Nepal. Furthermore, MOUs were signed to conduct the Final Location Survey for the proposed broad-gauge line between Raxaul and Kathmandu in October 2021. The Draft Detailed Project Report resulting from this Final Location Survey was submitted to Nepal in July 2023 for review and consideration. In FY 2020-21, India provided a grant of $10.93m, a loan of $60m, and $1.38m as Technical Assistance.

India’s shift

The year 2015 marks India’s shift away from engagement in politically sensitive issues with Nepal (in most cases), replacing it with a focus on development agendas. Additionally, India’s grassroots engagement has been facilitated through High Impact Community Development Projects (HICDPs). In Jan 2024, the cap of each project under HICDPs was increased to Rs 200m. Due to India’s intense engagement in Nepal’s political affairs since 1950, HICDPs have been at the center of debate in Nepal, with concerns about India's alleged intervention at the grassroots level to promote its vested interests.

Challenges

Despite such collaborative efforts, Nepal’s trade deficit with India has been steadily increasing. In 2015-16, Nepal’s trade deficit with India stood at $3,581m, with exports amounting to $419m and imports reaching $4,000m. By 2021-22, Nepal’s exports to India had increased to $1,330m, while imports surged to $9,580m, resulting in a trade deficit of $8,250m. In May 2024/25, Nepal’s trade deficit with India reached $9.63bn. This growing trade deficit is primarily due to Nepal’s heavy reliance on Indian petroleum products, vehicles and consumer goods, while Nepal’s exports, mainly agricultural products, struggle to compete in the Indian market.

In April 2022, both countries released a ‘Joint Vision Statement on Power Sector Cooperation’ to enhance power cooperation. However, within Nepal’s political circles, many Nepalis perceive this vision statement as India’s attempt to control Nepal’s water resources while discouraging investment from other foreign players. This perception has been reinforced by India’s consistent reluctance, both in actions and statements, to purchase electricity generated through Chinese capital or contractors in Nepal.

Way forward

Concluding all of the above, India has been focusing on connectivity issues between Nepal and India after India’s economic blockade in 2015, moving away from hardcore political issues. The increasing connectivity with India will help Nepal unlock new potentials, but due to Nepal’s own internal limitations and turbulence, this has resulted in a deeper economic dependency on India rather than interdependence.

India’s involvement at the grassroots level, aimed at empowering local communities through foreign aid and accounting for 35 percent of FDI stock, undeniably highlights its significance in Nepal. Furthermore, Nepal’s geographical positioning—surrounded by India on three sides—places it in a ‘locked’ relationship with India. The interplay between geographical proximity and distinct national identity has led to numerous fluctuations in their political dynamics since the 1950s.

From Nepal’s side, there is a growing perception that India is accelerating its connectivity development projects in Nepal at a time when Nepal is overwhelmed by multiple development commitments from China. Whether India is responding only after Chinese pledges to Nepal or if this is merely a coincidence remains a matter of debate. However, the narrative in Indian media and public discourse about Nepal shifting toward a pro-China stance is a fabricated attempt to undermine bilateral relations between Nepal and India.

Summing up, Nepal and India should move ahead by taking into account each other’s security sensitivities resulting from the open border.

Nepal and India have agreed to develop a high-quality transmission line for cross border power trade.

This agreement would be a crucial deal as the Government of Nepal has set an ambitious goal to generate 28,500 megawatts of electricity by 2035.

Spokesperson and Joint Secretary at the Ministry of Energy, Water Resources and Irrigation, Sandip Kumar Dev, the two new transmission lines will be completed by 2034/35, and the capacity of an existing transmission line will be upgraded.

A meeting of Joint Steering Committee and  JSC Secretary-Level Committee of Nepal and India, have agreed to construct the Nijgadh-Harnaiya Motihari and Kohalpur-Lucknow transmission lines of 400 KV. 

Likewise, the existing Dhalkebar-Muzaffarpur transmission line of 400 KV will be replaced with a high-capacity conductor. Currently, 800 megawatts of power are being imported through this transmission line.

During the meeting, a consensus was reached to import and export up to 1,000 megawatts of power. 

The 29th meeting of the Secretary-Level Joint Steering Committee held in India on February 11 was attended by Secretary at the Ministry of Energy, Water Resources and Irrigation, Suresh Acharya and Secretary of the Ministry of Electricity, India, Pankaj Agrawal.  

The two countries have already agreed to construct the Inaruwa-Purniya and Dodhara-Bareli cross border transmission lines of 400 KV. 

Nepal and India have agreed on modalities for constructing cross-border transmission lines.

The secretarial level meeting between relevant ministries of Nepal and India held in New Delhi, India on Tuesday, February 11, agreed on the modalities for the same.

The transmission line is vital for exporting 15,000 megawatts of electricity from Nepal to India and Bangladesh by 2035.

Nepal's Energy Secretary Suresh Acharya and India's Electricity Secretary Pankaj Agrwal signed the MoU. With this, the construction process for the cross-border transmission line will now move forward.

Earlier in November, 2024, Minister for Energy, Water Resources and Irrigation Deepak Khadka had discussed with Indian ministries regarding the same with the reference to power trade agreement between Nepal and India to export 10,000-megawatt electricity from Nepal to India within next 10 years.

The 12th meeting of the Joint Steering Committee (secretarial level) had subsequently convened on January 22 this year to take forward the construction process.

In the meeting, both parties had agreed to facilitate power trade between Nepal and India and expedite construction of cross-country transmission lines.

Nepal-India Chamber of Commerce & Industry (NICCI) welcomed the outcome and urged for speedy implementation of the India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade that was held in Kathmandu on January 10-11.

A meeting of the Inter-Governmental Sub-Committee (IGSC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade at the level of Joint Secretary had earlier held on January 12-13, 2024 in Kathmandu.

The Nepali delegation was led by Secretary Gobinda Bahadur Karkee, Ministry of Industry, Commerce and Supplies of Nepal and the Indian side by Commerce Secretary Sunil Barthwal, Ministry of Commerce, Government of India. Apart from secretaries senior officials from different Ministries and relevant departments of both the countries, including the Embassy of India in Kathmandu took part in meeting.

NICCI welcomed the outcomes of the IGC, a bilateral mechanism aimed at strengthening trade and investment ties, that did a comprehensive review of the whole gamut of bilateral trade and economic relationship, including mutual market access issues, IPR and duty related issues, reads a statement issued by NICCI.

NICCI is hopeful of renewed enthusiasm in trade and transit as the IGC also discussed on review of the Treaty of Transit and the Treaty of Trade, proposed amendments to existing agreements, the harmonization of standards and the synchronized development of trade infrastructure including the electrification of the Raxaul-Birgunj rail line.

NICCI also welcomed Indian decision to supply 200,000 MT wheat that was requested by Nepal. 

In the meeting, the Indian side agreed that as per prevailing regulations of Ministry of Road Transport and Highways, maximum axle weight of 18.5 tonnes for two axle vehicles and 28 tonnes for three axle vehicles may also be applicable to Nepali vehicles with respect to the cargo-in-transit on Kakarbhitta (Nepal)-Banglabandha (Bangladesh) via Phulbari (India) route, which is a welcome step, according to NICCI. 

Likewise, in response to Nepali side’s requests, the Indian side informed that Sal Seeds and Chayote have been included in the Plant Quarantine Order of India. The request for Jatamasi - Root extract; Sugandhkokila berry extracts; Sugandhwal Rhizome extract and Timur berry extracts into the list of Processed Items (Plant Products) has also been accepted, which is also welcome move by the India.

During meeting, at the Indian side’s request, Nepali side expressed openness to reviewing the documentation regarding the reclassification of products like EPAQUE and POLYHIDE 28 in their technical systems. The Indian side highlighted the problems faced in milk exports to Nepal. The Nepali side agreed to consider the request of Indian side positively for milk products not adequately produced in Nepal such as whey and cheese.

NICCI finds it positive that the meeting welcomed bilateral initiatives aimed at reinforcing the seamless cross-border connectivity between India and Nepal including through construction of new Integrated Check Posts and railway links. Both sides expressed a commitment to taking forward bilateral connectivity, reflecting the shared vision of prosperous bilateral trade. Both sides agreed to form a Joint Working Group for discussion on the acceptance of Online CoO with Nepal and SAFTA.

NICCI is of the view that India as the largest trade and investment partner for Nepal, its contribution to Nepal will further fortify the economic and commercial linkages between the two countries.

The Kaligandaki Corridor serves as a direct route connecting India and China.

This nationally significant project links the renowned Muktinath Temple in Mustang with Lumbini, the birthplace of Gautam Buddha, boosting both religious and cultural tourism.

Indian tourists have increasingly begun using the corridor to visit Muktinath, making it the most efficient route for their pilgrimage. According to Harihar Sharma, Deputy Mayor of Jaimini Municipality, the corridor also connects tourists from the Kaligandaki coastal area to Lumbini.

“The face of Baglung has transformed due to the southern corridor, which is currently undergoing blacktopping,” Sharma noted. The corridor includes a 44-kilometer stretch in Baglung, passing through Balewa, Kushmisera, and Jaidi, before connecting to Gulmi via Chhisti Chhischilo.

“The corridor has opened the door to South Baglung's development. Roads have been paved within five years of its opening. Indian tourists can now access Muktinath, while Chinese tourists can reach Lumbini, fostering trilateral trade relations,” Sharma added.

Since the corridor’s expansion, large cargo trucks and tourist buses have started arriving at Muktinath from Gaindakot via Jaiminidham, Baglung Kalika, and Panchakot. Once road paving is complete, the corridor is expected to see significant traffic, making it the shortest route for travelers entering Baglung, Myagdi, and Mustang from India.

According to local resident Sanam Rana, the convergence of the Kaligandaki Corridor and the Mid-Hill Highway in Baglung will further enhance tourism development in the region.

In the five years since its opening, various segments of the 495-kilometer corridor—extending from Gaindakot to the Korala border crossing with China—have been rapidly upgraded and paved. Inaugurated in 2018 with support from the Nepali Army, the corridor now enables Chinese tourists to travel to Lumbini through this route.

The corridor, planned 24 years ago, is progressing toward completion. It is being developed in two key sections: the 224-kilometer Gaidakot-Ramdi-Maldhunga segment, and the 255-kilometer Maldhunga-Beni-Jomsom segment. According to Kalpana Adhikari, Chief of the Kaligandaki Corridor Gaindakot-Maldhunga Project Office, 162 kilometers, or 67 percent, of the Gaidakot-Maldhunga segment has already been blacktopped.

The corridor has significantly simplified travel from Lumbini to Mansarovar via Muktinath. Campaigner Tikaram Dhakal anticipates further accessibility improvements after the road paving is complete.

With the corridor’s activation, Indian pilgrims are now traveling to Muktinath via the Ruru region, while Dhakal highlights the need to attract Buddhist pilgrims from China to Lumbini, the sacred birthplace of Lord Gautam Buddha.

The corridor, envisioned from Gulmi 24 years ago, connects several prominent pilgrimage sites, including Triveni Dham, Devghat Dham, Keladi Dham, Ramdighat, Ranighat, Rudrabeni, Setiveni, Purti Ghat, Jyamrighat, Palpa Bhairabhsthan, Baglung Kalika, Galeshwor Dham, Kagbeni, Muktinath, and Damodar Kunda.

A high-level meeting on Nepal-India border security coordination kicked off in Kathmandu on Saturday.

The meeting to continue till Monday is holding discussions on cross-border crime control and is expected to draw a conclusion on controlling illegal entry of third countries' nationals, the Inspector General of Armed Police Force (APF) Raju Aryal said.

The discussions are underway on the border security issues tabled by APF Inspector General Aryal. 

Proposals have been tabled from the Nepali side on crime control in the border areas and exchange of information for this, control of revenue leakage and human trafficking as well as the control of illegal entry of citizens of third countries.

The Nepali delegation in the meeting comprises high-level security officials including APF Chief Aryal, officials from the Home Ministry, National Investigation Department, Survey Department and Ministry of Foreign Affairs.  

Likewise, Director General of India's SSB Amrit Mohan Prasad has led a six-member Indian delegation.

Nepal's swashbuckling performance in the ongoing SAFF Women Championship secured their entry to the final.

Nepal defeated India in the semifinal, securing the berth to the final on Sunday.

Nepal won 4-2 in the tiebreaker.

In the match played at Dasharath Stadium, Tripureshwor, none of the team made a goal in the first half, while they had 1-1 in the second half.

Sabitra Bhandari 'Samba' scored a goal for Nepal as soon as the second half began.

Nepal will lock their horns with Bangladesh in the final.

Bangladesh had entered the final by defeating Bhutan on Sunday itself. Bangladesh defeated Bhutan 7-1 in the semifinal.

The Indian Embassy in Kathmandu has handed over a package of relief aid for the flood survivors.

Second Secretary duo of the Indian Embassy in Kathmandu Ashish Sinha and Narayan Singh handed over the relief materials to Chief District Officer of Banke Khagendra Prasad Rijal for the floods survivors.

Materials worth Rs 11.85 million were handed over to CDO Rijal at the ‘Humanitarian Assistance Site’ on the premises of the Nepalgunj Airport.

On the occasion, CDO Rijal thanked the Indian government for the humanitarian assistance. The materials include chlorine tablets, sleeping bags, water bottles and tarpaulin sheets.

CDO Rijal informed that additional aid from the Indian government once arrive will be sent to Kathmandu by air.

The route for electricity export from Nepal to Bangladesh has officially opened. With the signing of an electricity sale agreement between three companies from Nepal, India and Bangladesh on Thursday, Nepal is set to export electricity to a third country for the first time. Nepal has been exporting electricity to India for the past three years.

A tripartite Power Sale Agreement (PSA) was signed between the Nepal Electricity Authority (NEA), the Bangladesh Power Development Board (BPDB) and India’s NTPC Vidyut Vyapar Nigam Ltd (NVVN) during a program held in Kathmandu. As part of this agreement, Nepal will export 40 MW of electricity to Bangladesh in the first phase.

The agreement outlines that Nepal will sell the electricity, which will be transported through India’s transmission lines, and Bangladesh will purchase it. NEA Executive Director Kulman Ghising, BPDB President Rejul Karim and NVVN CEO Renu Narang signed the agreement.

The signing took place in the presence of Nepal’s Minister for Energy, Water Resources and Irrigation Deepak Khadka, and Bangladesh’s Minister for Forest, Environment, Climate Change and Water Resources, Syeda Rizwana Hasan. The Indian Ambassador to Nepal, Naveen Srivastava, was also present at the event.

Although the tripartite agreement was originally scheduled for July, it was postponed due to political protests in Bangladesh.

NEA Executive Director Ghising described the agreement as a milestone in South Asia’s energy cooperation, stating, “This is the culmination of our shared vision. It will open doors for subregional and regional cooperation.”

According to the agreement, NEA will export electricity to BPDB at a rate of about Rs 8.64 per unit (6.40 US cents).

For the export to Bangladesh, BPDB will pay a ‘wheeling charge’ to NVVN for using India’s transmission lines.

Nepal will install an electricity meter in Muzaffarpur, India, where the amount of electricity exported to Bangladesh will be recorded. NEA will bear the technical losses incurred up to that point, while Bangladesh will cover the technical losses from Muzaffarpur to its border. As a result, the price of electricity will increase from 6.4 cents to 7.6 cents per unit by the time it reaches Bangladesh.

Bangladesh will receive electricity through the Brahmapur (India)–Bheramara (Bangladesh) 400 KV transmission line, which it currently uses to import electricity from NVVN.

The agreement, which is valid for five years, stipulates that 144m units of electricity will be exported to Bangladesh annually, Ghising stated. He also noted that around Rs 1.21trn worth of electricity will be exported to Bangladesh each year.

The export will begin after receiving the necessary permissions from India, making Nepal the first country to export electricity to a third country, according to Ghising.

He added that Nepal aims to export 10,000 MW of electricity to India and 5,000 MW to Bangladesh in the future.

The NEA plans to export electricity generated by the 25 MW Trishuli and 22 MW Chilime hydropower projects—both built with Indian subsidies and owned by the authority—to Bangladesh. Both projects have received approval for electricity export to India.

For the next five years, the authority will sell 40 MW to Bangladesh during the rainy season, from June 15 to Nov 15 each year.

Bangladesh had previously decided to import 40 MW from Nepal. On Dec 20 last year, the Economic Affairs Committee of Bangladesh’s Council of Ministers under then Finance Minister Mustafa Kamal approved BPDB’s proposal to import 40 MW.

NEA and BPDB agreed on the electricity rate in late February. A tripartite agreement was prepared in Kathmandu on July 13, but it was delayed due to political unrest in Bangladesh.

Newly elected President of Nepal-India Chamber of Commerce & Industry (NICCI) Sunil KC said that Nepal and India share immense potential to strengthen economic cooperation.

He, however, said that there are gaps that still need to be bridged, particularly in attracting more Indian private investments into Nepal, which have declined recently.

KC said so during a gathering held in Kathmandu on Thursday.

He went on to say that the private sector must play a pivotal role in the economic partnership, especially in areas like infrastructure, energy, tourism, digital economy, manufacturing, and innovation.

“We at NICCI are committed to fostering these collaborations,” he added.

During the event, he highlighted a long-standing challenge of exporting Nepali products to India. For instance, some Nepali shoe brands and agro-products like ginger and cardamom face numerous barriers that need resolution. Addressing these will not only boost Nepal’s economy but also ensure that Indian consumers can benefit from the high-quality goods Nepal produces, KC further said.

He urged all stakeholders to prioritize this matter and work on a sustainable solution.

Furthermore, the NICCI President said that the promotion of joint ventures in Nepali power projects is another key area where both nations can win. Nepal’s vast hydropower potential, when coupled with Indian expertise and investment, can lead to mutual prosperity.

KC stressed on the need of greater collaboration in this sector to harness our energy resources more efficiently.

He underscored that a Nepal-India Partnership Summit should be held every two years to institutionalize dialogue and progress.

 Such a platform would allow stakeholders from both sides to discuss, debate, and resolve critical issues like foreign direct investment, trade facilitation, and economic growth. Regular interaction is essential to building trust and addressing concerns on both sides, he said.

“We also see immense value in establishing targeted partnerships with Indian state governments to focus on attracting FDI in specific sectors. Each Indian state offers unique opportunities, and fostering such collaborations will allow us to tailor investments to meet regional needs and goals,” KC added.

He was of the opinion that the time has come to focus on the future by setting up the Nepal-India Innovation and Entrepreneurship Center. This initiative will support startups, promote innovation, and create opportunities for young entrepreneurs to collaborate across borders, driving sustainable growth and technological advancement.

“We propose establishing a NICCI branch office in New Delhi to create a permanent channel of communication between Indian and Nepali businesses. This will facilitate smoother trade and investment processes and provide a central hub for resolving any business-related issues,” KC said.

The energy minister, the Indian ambassador and former ministers among others were present in the program.

India’s efforts to boost its one-horned rhino population are being hailed as a major success, drawing parallels to Nepal’s conservation achievements. Over the past four decades, India’s rhino population has surged from 1,500 to over 4,000, according to data released on World Rhino Day.

This progress mirrors Nepal’s own triumph in protecting the one-horned rhinoceros, particularly in Chitwan National Park, where community involvement and anti-poaching efforts have been key. Nepal has long been recognized for its effective conservation strategies, serving as a model for neighboring India.

Much like Nepal’s approach, India’s success has hinged on collaboration between forest departments and local communities. The rhino populations in both countries are vital to maintaining the biodiversity of the region, with Assam’s Kaziranga National Park and Nepal’s Chitwan National Park being prime habitats.

Globally, rhino populations have drastically decreased, but the greater one-horned rhino has made a strong comeback in both Nepal and India. Yet, challenges remain. Poaching, fueled by the demand for rhino horns in China and Vietnam, still threatens these vulnerable species. As India follows in Nepal's footsteps, both nations must continue to enhance their conservation efforts to ensure these iconic animals thrive for future generations.

K V Rajan and Atul K Thakur are the co-authors of “Kathmandu Chronicle: Reclaiming India-Nepal Relations”. Definitive and deeply researched, the book opens a window to many stories of India–Nepal relations that largely remain untold and therefore unknown till date. Kamal Dev Bhattarai of ApEx interviews Rajan, also a former India’s ambassador to Nepal, and Thakur, a policy professional, writer and columnist.

What are the key revelations in the book from your anecdotal accounts as India’s longest serving Ambassador to Nepal?

K V Rajan: At the outset, let me clarify that whatever I have set down is with the intention of conveying the total picture as I know it—pertaining to Nepal and to India-Nepal relations. If in the process I have upset or hurt anyone, I can only apologize and hope that the overall context of goodwill and empathy for Nepal will not be doubted. The core message that should come across through the anecdotal reflections is one of hope and optimism for Nepal's future, respect for its insistence on equality and sovereign space, and admiration for the resilience and capacity of the Nepali people and leaders over many years to take the country forward in the face of major odds. 

The linkages between our two nations are old, many and time-tested, the economic complementarities have a compulsive logic of their own, the reservoir of human talent is huge. We need only to understand and draw lessons from the past, deal with imagination and sensitivity to the trends and issues of the present, in order to craft a great future for a peaceful, inclusive and prosperous India-Nepal subregion which will be a role model for the region and perhaps the world. 

We need to have a broad based consensus on the kind of relationship we both want, and establish mutual acceptance in our ties. We can achieve wonders by jointly building on our soft power assets, new technologies, and complementarities. No issue is incapable of solution between India and Nepal if tackled in the right spirit and in the context of their unique linkages and unshakeable faith in a common great future. 

Happily, a consensus-based effort on both sides in tackling problems and making progress is possible, so that projects can be negotiated and delivered despite changes of government. This has been demonstrated time and again, for example spectacularly during the negotiation and parliamentary ratification process of the Mahakali Treaty. 

The book has a different take as to who might have perpetrated the royal assassination of 2001 that wiped out King Birendra Shah and his family, which changed Nepal’s natural progression. Can you elaborate?

K V Rajan: The readers’ will have to draw their own conclusions after going through the concerned chapter in the book. Even the facts that are in the public domain support the strong probability of an international conspiracy whose core was a foreign-based large scale smuggling and terrorism-related industry that was thriving on misuse of the India-Nepal border. The palace tragedy followed a series of serious incidents and exposures. India and Nepal were enjoying excellent relations under the twin pillar policy being followed by the former, of supporting the monarchy as well as multiparty democracy. The expanding Maoist insurgency was a matter of growing concern for India as well as Nepal, but signals were being exchanged on possible compromise solutions. The smuggling-terrorist nexus was the one major force which did not want such a negotiated compromise to be reached and had also been steadfastly trying to undermine relations between India and Nepal and was also uncomfortable with Nepal’s identity as a Hindu state.

All available indications are that the crown prince was trapped in a sinister plan combining serious drug abuse with targeted misinformation. The rest is history. 

How do you think we can reclaim India-Nepal relations in the changed times with Nepal grappling with challenges on several fronts including governance and economy?

K V Rajan: As vibrant democracies the two countries have the duty, responsibility, the right, and the necessity to reclaim their age-old relationship for the sake of peoples on both sides of the border and of future generations. A reset in the bilateral relations is a necessity, for Nepal today is a completely transformed country and India too is very much on the rise, both confronted by new challenges as well as new opportunities in an uncertain and changing world order. Strengthening democracy, improving governance, and accelerating inclusive development must occupy top priority. Future major cooperation must be consensus-based cutting across party lines to the extent possible and civil society needs to play its part in this exciting endeavor.

Catering to the interests and aspirations of youth on both sides on the border, and improving the lot of the marginalized, the most disadvantaged, the poorest and the most needy, should also be a focus. Just as India has set a goal of becoming a developed country by 2047, we should dare to think of a new vision for India-Nepal ties, so that they can scale new heights within the next two decades. A joint endeavor in this direction—which would include sectors like education, health, creation of job opportunities on a huge scale to protect the demographic dividend, and new supply chains which will foster greater interdependencies and economic integration— would go a long way. 

Opportunity is banging at the door. A business-as-usual approach will not do. 

As a long-time scholar on Nepal, your book is making news in both India and Nepal. Could you reflect on Nepal’s prolonged transition and fluctuating graph of India-Nepal relations?

Atul K Thakur: Despite their much-vaunted ‘special relationship’ (a term rarely used by Nepal in recent times), India-Nepal ties have repeatedly experienced setbacks, some of them with long-term implications. Since India’s independence, Nepal has undergone several significant transformations, and not coincidentally, India has been intimately involved in many of these pivotal moments. 

Yet, there have been regular anti-Indian eruptions in Nepal, and there is so much mutual distrust and suspicion despite India's best intentions. I believe Nepal and India, both at the level of government as well as civil society, urgently need to come to terms with the past, understand comprehensively and objectively the unique challenges and opportunities offered by the present, and ‘repurpose’ their relationship if it is to achieve its exceptional potential in the coming years. 

Our book, based on first person experience, deep research, analysis and introspection, and new resource materials, facilitates understanding of how an India with credible aspirations to becoming a major world player and a transformed Nepal in a transforming world order could revisit their ties to ensure a steady upward trajectory.

Both countries owe it to their peoples to free the relationship from political vicissitudes as well as the negative legacies of the past. Concepts of national interest and mutual security need to be relevant to the world of today and tomorrow. Only mutual empathy, as either country strives to overcome its major challenges, can transform the relationship into a truly special one.

The book makes a sincere and honest effort to add to the literature on the subject through original analyses, interpretations and research.

How is China a big factor for repurposing India-Nepal relations?

Atul K Thakur: The new post-monarchy dispensation only hastened the expansion of Chinese influence and removed possibilities of ending long festering irritants like the border dispute in the Kalapani area—a unanimous multiparty Parliamentary vote endorsed a new map of Nepal incorporating border areas which it had not claimed earlier.

India has made its Nepal ties a function of Nepal-China relations. Yet the fact is that Chinese influence in Nepal will continue to expand. It is only natural that the people of Nepal, particularly the younger generation, yearn to take advantage of all kinds of economic opportunities and benefits that China has to offer. Nepal's importance to China was initially because of its desire for security on the question of Tibetan refugees. It did not seem to mind India’s preponderant influence over Nepal. Today China has additional reasons to assert itself: one is to reduce India to size to the extent possible, the other to ensure that its Middle Kingdom credentials are enhanced. But India can draw comfort from the increased wariness of Nepal about Chinese intentions because of its overtly intrusive interest in the former’s internal affairs, and the long term price of too close a Chinese embrace.

China is just not over-pervasive in Nepal with projects and political manipulation, its best edge is with the propaganda machinery that is oriented to damage the finer fabrics of India-Nepal relation beyond the core. The China factor is being played out in Nepal and unfortunately not for a constructive aim of enhancing its economic ties with the northern neighbor but to create a complex web involving India’s stake and finally letting a disastrous narrative help the traders of ultra-nationalism for scoring high politically and ruling the game of late.

How should Idia reclaim the true spirit of its old good bilateral relations with Nepal or reset it in the changed times?

Atul K Thakur: India and Nepal must return to the core strength of their unique social, cultural, strategic, political, and economic ties. India and Nepal share deep social, cultural, strategic, political, and economic ties that have been forged over many centuries. Unfortunately, ties wither if exposed to the changing fundamentals of time. India-Nepal ties have frayed slowly as the economic bonds between the two countries have failed to keep pace with India’s modernization and growth. The opportunities offered by India’s prospering economy have become increasingly inaccessible, and thereby irrelevant to ordinary Nepalis. The persistent border dispute between the two countries is an opportunity for them to modernize old ties towards a shared vision of prosperity. India and Nepal must do more than merely resolve boundary issues.

Notwithstanding the centrality of complementarities in bilateral relations, oftentimes, the official line has taken its own turn in interpreting the not-so-easy situations. While repurposing India-Nepal relations, the prudent move would be to rely more strongly on the trust factor, subsiding apprehensions and complexities. India and Nepal have a credible past as well present in engaging with each other—and walking with the changing times. In knowing the new aspirations of both sides, and accordingly creating the background of cooperation, India-Nepal relations will see further heights. In the times to come, hopefully better chapters of India-Nepal bilateral relations will be scripted.

The 78th Independence Day of India was celebrated by organizing a program in the Indian Embassy premises on Thursday.

Indian Ambassador to Nepal Naveen Srivastava hosted the national flag and read out the message of Indian President “Droupadi Murmu”.

Independence Day celebrated in the premises of the Indian Embassy in Kathmandu was followed by a cultural program by the students of Kendriya Bidhyala.

On the occasion, Indian Ambassador Srivastava also felicitated widows and next of kin of deceased Gorkha soldiers of Indian Armed Forces with cheques and blankets. Books for libraries were also handed over to various institutions.

Prime Minister KP Sharma Oli has also congratulated his Indian counterpart Narendra Modi and the people of India on the country’s 78th Independence Day.