Nepal’s Political Turmoil: A Test Case for India’s Neighbourhood First Policy

Syllabus: International Relation  

Source:  DH

Context: Nepal is witnessing a political churn after the resignation of PM K.P. Sharma Oli, violent protests, and the swearing-in of former Chief Justice Sushila Karki as interim PM.

  • India faces a strategic challenge to protect its security and economic interests while avoiding perceptions of interference, even as China deepens its influence.

About Nepal’s Political Turmoil: A Test Case for India’s Neighbourhood First Policy

India–Nepal Relations:

  • Geostrategic Neighbour: India shares a 1,770–2,000 km open border with Nepal, allowing free movement of goods and people, making political instability a direct security concern.
  • Cultural & Civilisational Ties: Shared Hindu-Buddhist heritage, deep people-to-people contact (Madhesi population), and Gorkha regiments in the Indian Army make the relationship unique.
  • Economic Interdependence: India is Nepal’s largest trade partner and investor (accounts for over 60% of Nepal’s trade), major source of FDI, fuel, medicines, and electricity.
  • Hydropower Diplomacy: India imports power from Nepal under cross-border power trade agreements and invests in projects like Upper Karnali & Arun-III hydropower plants.
  • Security Stakes: Any political vacuum could allow cross-border smuggling, fake currency networks, and Chinese strategic presence under the Belt and Road Initiative (BRI).

China’s Growing Footprint in Nepal:

  • BRI Investments: China funds infrastructure projects — highways, airports, and rail links (Tibet–Kathmandu Railway).
  • Political Leverage: Beijing has cultivated ties across Nepal’s parties, mediating even intra-party disputes in CPN.
  • Soft Power Expansion: Chinese language, Confucius Institutes, scholarships, and media engagement boost influence.
  • Security Risks: Chinese presence near Siliguri Corridor (Chicken’s Neck) is a concern for India’s strategic calculus.

Concerns for India:

  • Political Instability: 14 governments in 17 years; frequent coalition collapses disrupt bilateral agreements.
  • Anti-India Sentiment: Legacy of blockades (2015), perception of interference fuels mistrust among Nepali youth.
  • China Factor: Strategic depth gained by Beijing could challenge India’s primacy in Himalayan geopolitics.
  • Border Management: Open border facilitates illegal migration, arms smuggling, and potential terror routes.
  • Economic Fallout: Political crisis may derail India-funded connectivity projects (rail, ICPs, energy corridors).

Challenges for India:

  • Balancing Non-Interference & Engagement: Over-engagement risks accusations of “big brother” behaviour; under-engagement leaves space for China.
  • Youth Disconnect: Gen Z Nepalese grew up post-monarchy, often shaped by anti-India narratives, making trust-building tougher.
  • Federal Politics: Need to engage not just Kathmandu but provinces, Madhes leaders, and new political actors.
  • Economic Vulnerabilities: Political turmoil may affect remittance inflows, border trade, and cross-border power projects.
  • Security & Refugee Risks: Prolonged instability could increase refugee influx and boost Chinese intelligence activity.

Way Forward:

  • Diplomatic Engagement: Deepen ties with emerging leaders across provinces; strengthen Track 1.5 & Track 2 dialogues.
  • Economic Diplomacy: Fast-track border infrastructure, ICPs, and rail connectivity (Jaynagar–Bardibas, Raxaul–Kathmandu).
  • Energy Cooperation: Scale up hydropower projects and facilitate trilateral power trade (India–Nepal–Bangladesh).
  • People-to-People Initiatives: Expand scholarships, tourism circuits (Ramayana Circuit), and cultural exchanges to counter anti-India narratives.
  • Strategic Patience: Avoid overt political alignment; focus on institution-building and long-term partnership rather than personalities.

Conclusion:

India must adopt a calibrated, multi-dimensional approach that secures its strategic interests without fuelling anti-India sentiment. Economic interdependence, energy partnerships, and youth-centric diplomacy will be key to building trust. A stable, democratic, and prosperous Nepal is the best guarantor of India’s security and regional balance vis-à-vis China.