India–Nepal Relations

Why in News: Nepal is undergoing a political transition marked by protests, violence on the streets, and growing discontent with the old political elite. A new generation of leaders and activists is demanding accountability, stability, and inclusive democracy. 

Challenges

1. Political Instability – Frequent regime changes, weak federal institutions, and absence of consensus on governance.

2. Generational Shift – Youth leaders, activists, and civil society demand change, moving away from traditional elites.

3. Street Unrest – Protests, violence, and demand for systemic transformation threaten internal stability.

4. Economic Stress – Declining remittances, joblessness, and global slowdown have deepened Nepal’s crisis.

5. Geopolitical Pressures – Influence of external powers, especially China, could marginalise India’s role if policies lack sensitivity.

India’s Concerns

  • Stability in Kathmandu is vital for border security, hydropower cooperation, trade, and regional connectivity.
  • Anti-India rhetoric, if unaddressed, can erode goodwill.
  • Exclusionary politics in Nepal could destabilise Madhesi and marginalised communities, affecting bilateral ties.

Policy Priorities for India

1. Engage with youth and new political actors beyond traditional elites.

2. Support inclusive federalism and democratic institutions without interfering in internal politics.

3. Strengthen economic ties by deepening trade, connectivity, and hydropower cooperation.

4. Assist Nepal in managing crises with targeted financial and technical aid.

5. Maintain strategic patience and sensitivity to Nepal’s sovereignty, avoiding heavy-handed tactics.

Way Forward

India must adopt a people-centric and tactful approach—anchored in inclusivity, economic partnership, and democratic support. A balanced policy will secure mutual stability and strengthen India’s role as a trusted partner.

GS Paper II: International Relations-Neighbourhood First Policy 

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