India-Nepal Relations: Repairing Bilateral Ties

The recent visit of Nepal’s PM to India cleared the stage for resolving a border dispute through discussion and increasing hydropower production in Nepal, primarily through Indian investment.

  • The visit is strategically significant for India since it wants to discourage Chinese investment in Nepal and promote sub-regional cooperation through power trade among BBIN member countries.
  • Certain differences between Nepal and China, primarily as a result of the border closure and India's positive attitude toward boosting the Nepalese economy, have resulted in a high level of trust between the two countries, which could lead to increased economic cooperation for the benefit of the two countries' people in the future.