Nepal’s Prime Minister Khadga Prasad Sharma Oli has been eagerly awaiting an invitation to visit India since taking office for the fourth time on July 15, 2024. Traditionally, a visit to India is considered the first diplomatic trip for any newly appointed Nepali prime minister. Despite his enthusiasm, India has remained reluctant to extend an invitation, and the reasons behind this diplomatic hesitation are rooted in a complex history of missteps and misunderstandings.

Oli’s Unfulfilled Wish for a Visit to India
Oli’s office, alongside Nepal’s Ministry of Foreign Affairs, has reportedly reached out to New Delhi multiple times since August, hoping to arrange an official visit. While the timing seemed ideal, with Oli being a seasoned leader in Nepalese politics, India has chosen to remain firm on not hosting him yet. Despite the strategic importance of maintaining strong ties between the two neighboring countries, this reluctance highlights the challenges that have emerged in recent years between India and Nepal.

Elaboration:
- Traditional Practice:Traditionally, the Prime Minister of Nepal has made a visit to India as their first foreign trip.
- Oli’s Departure:Oli, in certain periods, deviated from this tradition, opting to visit China first, according to orfonline.org.
- Political Motivations:This departure was likely influenced by political factors, such as attempting to balance relations with both India and China, and possibly to address domestic issues.
- India’s Significance:Despite the occasional deviations, India remains a significant partner and neighbor for Nepal, with close economic and cultural ties.
Strained Relations Between India and Nepal
One key factor contributing to the strained relations between the two nations is a series of actions taken by Oli during his previous terms in office. Oli has been known for adopting a nationalist stance that occasionally brought tensions to the surface between India and Nepal. For instance, in 2020, Oli’s government released a new map of Nepal that included disputed territories claimed by India, such as Kalapani, Lipulekh, and Limpiyadhura. This move deeply irked India and resulted in a diplomatic standoff that has yet to be fully resolved.

Oli’s rhetoric, often framed as defending Nepal’s sovereignty, did not sit well with Indian leadership, which saw it as a deliberate provocation. While his strong stance resonated with nationalistic sentiments within Nepal, it further strained diplomatic relations with India, raising doubts about the future of the historically close ties between the two countries.
Key Issues:
- Border Disputes:Disputes over areas like Kalapani, Lipulekh, and Limpiyadhura, and the Susta region, have been a major source of contention.
- Economic Disparities and Trade:Nepal’s trade deficit with India, and the dependence on Indian trade and transit routes, can lead to resentment and a perception of unequal partnership.
- Nepal’s Political Landscape:Nepal’s domestic political transitions, including the constitution-making process and the rise of Maoism, have at times strained relations with India, which has expressed interest in Nepal’s internal affairs.
- Security Concerns:India’s perceived influence on Nepal’s security, including the Gorkha recruitment process, has been a point of contention.
- “Big Brother” Behavior:Some view India’s approach to relations with Nepal as a “big brother” attitude, contributing to a sense of unease and frustration.
- Water Issues:Controversies over the development of hydropower projects and water resources have also created friction.
- Historical Context:The 1950 Treaty of Peace and Friendship, while aimed at fostering close ties, has also been a source of contention, with Nepal viewing certain clauses as limiting its sovereignty.
- Trade and Transit:The reliance on Indian trade and transit routes has created vulnerabilities for Nepal and contributed to its trade deficit.
Impact of Strained Relations:
- Reduced Cooperation:Strained relations can hinder cooperation on various fronts, including infrastructure development, border management, and security.
- Increased Tensions:Disputes and disagreements can escalate into public protests and even diplomatic clashes.
- Shift in Foreign Policy:Nepal’s increasing engagement with China and other countries can be seen as a response to strained relations with India.
Moving Forward:
- Dialogue and Negotiation:Resolving border disputes and addressing economic disparities through dialogue and negotiation is crucial.
- Trust-Building Measures:Promoting greater transparency and understanding between the two countries can help build trust.
- Diversification of Trade and Transit:Reducing Nepal’s reliance on Indian trade and transit can enhance its economic autonomy.
- Respect for Sovereignty:India needs to respect Nepal’s sovereignty and refrain from interfering in its internal affairs.
In an analysis of India-Nepal relations, experts note that while the countries share deep cultural, economic, and historical connections, the diplomatic tensions under Oli’s leadership cannot be ignored.
India’s Strategic Hesitancy
India’s reluctance to host Oli goes beyond historical disputes. There are concerns about how Nepal, under Oli’s leadership, may balance its relationships with other global players, particularly China. In the past, Oli has been seen as leaning toward China, signing agreements and receiving infrastructure aid under Beijing’s Belt and Road Initiative. This has raised concerns in New Delhi, which views China’s increasing influence in Nepal as a strategic threat to its own security and regional influence.

Oli’s balancing act between India and China remains a delicate issue. Though Nepal has repeatedly affirmed that it wants to maintain strong relations with both countries, India perceives Oli’s engagement with China as an encroachment into its traditional sphere of influence in South Asia.
Key Aspects of India’s Strategic Hesitancy in Nepal:
- Economic and Trade Relations:
- Limited Multilateral Agreements: India’s reluctance to facilitate multilateral hydropower trade agreements with Nepal, even for countries like Bangladesh, impacts Nepal’s ability to sell energy.
- Dependence on Indian Transit: Nepal’s trade and transit routes are heavily dependent on India, and India’s approval is often required for trade with neighboring countries, particularly for exporting power to Bangladesh.
- Strategic Concerns:
- China’s Growing Influence: India views Nepal’s increasing alignment with China, especially with the BRI project near the Siliguri Corridor, as a strategic threat, leading to concerns about Nepal’s sovereignty.
- Border Disputes: The border dispute over the Kalapani region has fueled tensions and further complicated the relationship.
- Perceived Interference:
- Nepal’s Perception of Indian Interference: Nepal perceives India as interfering in its domestic affairs, which has led to resentment and mistrust.
- Historical Context:
- Long-standing Treaty: The 1950 Treaty of Peace and Friendship between India and Nepal, while aiming to establish close relations, has been viewed by some as a source of Indian dominance.
- Nepal’s Balancing Act: Nepal seeks to balance its relationship with both India and China to avoid dependency on either, which can be seen as a strategic move to reduce influence from either country.
India, on its part, remains Nepal’s largest trading partner and is a key source of vital resources like fuel, food, and electricity. Despite the economic ties, India’s hesitancy to engage with Oli speaks to deeper geopolitical concerns about how Nepal’s political leadership might shift its foreign policy priorities.
The Need for Diplomatic Reconciliation
There is no doubt that both India and Nepal benefit from a strong and stable relationship. The geographical proximity, open borders, and the deep cultural and social connections make their bilateral ties crucial for regional stability. In light of this, many experts urge both nations to reconcile their differences, with dialogues between India and Nepal being seen as essential to overcoming the current standoff.

Oli’s desire to visit India reflects his acknowledgment of the importance of the relationship with its southern neighbor. But for India, a formal visit may be conditional upon steps that rebuild trust and clarify Nepal’s position on key strategic issues, including territorial disputes and its stance on China.
Here’s a more detailed look at the need for diplomatic reconciliation in Nepal:
- Addressing the Legacy of Conflict:Nepal’s 10-year civil war (1996-2006) left a deep scar, and transitional justice efforts, including the TRC, are crucial for healing and building a more peaceful society.
- Truth and Reconciliation:The TRC works to establish the truth about past violations, allowing victims to speak and have their questions answered, which is a vital step in the reconciliation process.
- National Unity:Diplomatic reconciliation efforts, both domestically and internationally, are needed to foster national unity and address internal political differences.
- Foreign Policy Objectives:Nepal’s foreign policy prioritizes safeguarding sovereignty, territorial integrity, and promoting economic well-being, often achieved through diplomatic channels.
- Soft Power:Nepal can utilize its soft power assets, like its cultural heritage and tourism, to strengthen its diplomatic presence and influence on the international stage.
- Transnational Justice:The TRC’s work is part of a broader transitional justice process, which aims to prevent future conflict and promote peacebuilding.
In essence, diplomatic reconciliation in Nepal is vital for addressing the legacy of conflict, fostering national unity, achieving foreign policy objectives, and promoting sustainable peace.
While Oli’s repeated requests for an invitation remain unmet, it is possible that backchannel diplomacy is already underway, with officials on both sides trying to navigate the complexities of their relationship. Resolving the border dispute, reaffirming Nepal’s commitment to balancing its foreign policy between India and China, and working toward mutual economic benefit could be the key points of discussion.
Regional Implications
The delay in Oli’s visit to India has not gone unnoticed in the broader South Asian geopolitical landscape. Other regional players, such as China, could potentially exploit the strained India-Nepal relations, further complicating the dynamics between the two countries. Moreover, Nepal’s internal political stability, heavily influenced by its foreign relations, could be impacted if these diplomatic tensions continue unresolved.

Here’s a more detailed look at Nepal’s regional implications:
1. Geopolitical Significance:
- Buffer State:Nepal’s location allows it to play a role in regional power dynamics by acting as a buffer state between India and China.
- Strategic Location:Nepal’s position between two major powers gives it strategic importance, influencing its foreign policy and security strategies.
- Regional Power Rivalries:Nepal’s geography can be impacted by regional power rivalries, making it important to maintain balanced relationships with both China and India.
- Geopolitical Challenges:Nepal’s complex geopolitical environment poses challenges to its stability and sovereignty, requiring a cautious approach to foreign policy.
2. Economic Implications:
- Economic Development:Nepal’s underdeveloped economy and dependence on foreign aid are linked to its regional relations, highlighting the importance of maintaining balanced relations with powerful nations.
- Hydroelectric Potential:Nepal possesses significant hydroelectric potential, which could enhance its economic standing within the region.
- Development Strategies:Nepal’s geopolitical and geoeconomic megatrends are being analyzed to explore scenarios for the country’s development, including diversifying investments and strengthening governance.
3. Security Implications:
- National Security:Nepal’s national security extends beyond military concerns to encompass political stability, economic development, and territorial integrity, influenced by both internal and external factors.
- Internal and External Pressures:Nepal faces growing internal and external pressures, requiring a comprehensive understanding of its geopolitical realities to develop an effective national security strategy.
- Border Disputes:Nepal’s border disputes with India and China add to the complexity of its regional security environment.
In an interconnected South Asia, where both India and Nepal play crucial roles in the regional economic and security architecture, the need for smooth diplomatic relations cannot be overstated. It is imperative for both nations to find common ground to ensure regional cooperation and peace.
A Way Forward?
For Nepal and India, overcoming the current impasse is critical. Experts suggest that the onus lies on both sides to foster an environment of mutual respect and cooperation. Nepal, under Oli’s leadership, could take steps to address India’s concerns regarding territorial disputes and its foreign policy, while India could offer diplomatic overtures to heal the strained relations.

Here’s a breakdown of the potential issues and “way forward” considerations:
1. Challenges:
- Dependency on India:Nepal’s reliance on India for oil supplies makes it vulnerable to price fluctuations and potential disruptions in the supply chain.
- Geopolitical Factors:Regional politics and relationships with neighboring countries can impact oil imports.
- Economic Impact:Oil prices and supply shortages can significantly impact the Nepali economy, affecting businesses, transportation, and everyday life.
2. PM’s Role:
- Policy Implementation:The Prime Minister (currently KP Sharma Oli) plays a key role in formulating and implementing policies related to oil imports, pricing, and distribution.
- Negotiation and Diplomacy:The PM may engage in negotiations and diplomatic efforts to ensure stable oil supplies and favorable terms with neighboring countries, such as India.
- Addressing Supply Disruptions:The PM’s office must be prepared to address any potential supply disruptions or crises, ensuring that essential needs are met.
3. “Way Forward” Considerations:
- Diversification of Supply:Exploring alternative routes for oil imports and diversifying supply sources can reduce dependence on a single country.
- Energy Independence:Investing in renewable energy sources and exploring local oil and gas resources could increase Nepal’s energy independence.
- Efficient Distribution:Streamlining oil distribution and ensuring equitable access to fuel is crucial for the economy and public well-being.
- Collaboration and Partnerships:Fostering collaboration with neighboring countries and international organizations can facilitate oil supply security and support energy development efforts.
As India and Nepal look toward the future, both countries must keep in mind the larger picture—regional peace, economic development, and long-standing people-to-people ties that bind them together.
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