New Delhi: Nepal's Prime Minister KP Sharma Oli’s decision to visit China before India after assuming office in 2024 had reignited speculations about the trajectory of India-Nepal bilateral ties. While some analysts see this as a shift in Kathmandu’s diplomatic priorities, New Delhi has downplayed concerns, maintaining that relations between the two South Asian neighbours remain strong.
"I can tell you that the relations between the two countries remain good and strong and we want to further strengthen these," External Affairs Ministry spokesperson Randhir Jaiswal said during his regular media briefing here on Friday. Jaiswal’s comments come in the wake of the visit of Munu Mahawar, the new Additional Secretary (North) who looks after Nepal in the Ministry of External Affairs, to Kathmandu earlier this week.
"During the course of his visit, he held discussions with senior officials of Nepal on how to further strengthen India-Nepal ties," Jaiswal said. "There were discussions on other issues as well."
The bilateral relationship between India and Nepal has seen some interesting developments since Oli assumed office as Nepal’s Prime Minister for the fourth time in July 2024. Oli’s return to power has been marked by efforts to balance Nepal's diplomatic engagements with both India and China.
Upon his appointment, Prime Minister Oli emphasised his commitment to strengthening Nepal-India relations. In September 2024, on the sidelines of the 79th United Nations General Assembly in New York, Prime Minister Narendra Modi held a bilateral meeting with Oli. Both leaders described the meeting as very good.
Economic collaboration, particularly in the energy sector, has been a focal point of India-Nepal relations during Oli’s tenure. In October 2024, Nepal sought Indian investment for its hydropower projects, aiming to boost electricity generation and export surplus power to India. This initiative aligns with India’s goal of achieving net-zero emissions by 2070 and reflects Nepal’s target of attaining a 28 GW generation capacity within the next decade.
In December 2024, Prime Minister Oli visited China to seek momentum for infrastructure projects under Chinese President Xi Jinping’s pet Belt and Road Initiative (BRI). This visit marked a departure from the traditional practice of Nepalese leaders making their first foreign visit to India after assuming office. The move was interpreted as an effort to recalibrate Nepal’s economic ties with China and lessen reliance on India, which currently dominates Nepal’s trade landscape.
During the course of his visit to Nepal this week, Mahawar led the Indian delegation in the fifth meeting of the Joint Project Monitoring Committee (JPMC) in which both sides carried out a comprehensive review of the progress of Government of India-assisted post-earthquake reconstruction projects in housing, education, health and cultural heritage sectors in Nepal.
After the April 2015 Himalayan earthquake in Nepal, India committed $250 million grant assistance for post-earthquake reconstruction in Nepal. The grant was allocated in four different sectors – housing ($100 million), education ($50 million), health ($50 million) and cultural heritage ($50 million). The JPMC mechanism was set up in August 2017 to monitor the progress of these projects.