Indian PM Modi to visit Nepal amid renewed warmth in bilateral ties: Is Kathmandu distancing from Beijing?

Trade disruption along the border with China during the pandemic, alleged border incursions in a northwestern district, and Kathmandu's aversion to costly Chinese loans for megaprojects among other factors have influenced Kathamandu’s desire to reduce its dependence on Bejing and mend ties with India and the US.

May 04, 2022
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Indian Prime Minister Narendra Modi and Nepali Prime Minister Sher Bahadur Deuba

Indian Prime Minister Narendra Modi is expected to visit Nepal’s Lumbini on 16 May to witness, jointly with Nepali Prime Minister Sher Bahadur Deuba, an event marking the birth anniversary of Lord Buddha. The visit to Nepal—the first in Modi’s second term and the fifth since 2014—comes weeks after Deuba visited India.

Local media in both countries, citing diplomatic sources, confirmed that officials of both countries have already started preparations for Modi’s one-day visit to Lumbini, a Nepali district along the border with India and also the birthplace of Lord Buddha.

According to a report in The Hindu, Modi is expected to take a helicopter from Kushinagar, an important Buddhist pilgrimage site near the border in Uttar Pradesh. Although an official announcement is yet to come, officials have already conducted reconnaissance for the visit, reported The Kathmandu Post.

For the first time in three years, the two countries resumed visits at the highest political level after the bilateral ties came under strain following the Kalapani boundary row. However, the two countries now appear back on track, putting constant efforts to reduce the trust deficit, and enhancing political and economic cooperation.

Last month's visit by Nepali Prime Minister Deuba to India and the joint vision statement released thereafter indicated the thrust given to bilateral economic cooperation and connectivity.

The renewed push at the political level and desire for cordial ties are evident, mainly fueled by a changing geostrategic environment, and Kathmandu’s attempt to balance its ties with China, the US, and India.

Former Indian Ambassador Ranjit Rae, who has served as New Delhi’s envoy to Nepal, termed Deuba’s last month's visit to India “extremely successful”. Beyond its political objectives, the visit managed to send strong signals that the two neighbors are back on track, focussing on enhancing economic cooperation and connectivity.  
“The relationship between countries, such as India and Nepal, which is very close and even intrepid, needs to be nurtured constantly at the highest political level,” Rae, who has written a book titled “Kathmandu Dilemma: Resetting India-Nepal Ties,” said in a VIF podcast. 

Trade disruption along the border with China during the pandemic, alleged border incursions in a northwestern district, and Kathmandu's aversion to costly Chinese loans for megaprojects among other factors have influenced Kathamandu’s desire to reduce its dependence on Bejing and mend ties with India and the US.

Furthermore, the strained ties with India since the boundary row in 2020 also hampered its economic cooperation with New Delhi, which remains extremely important for the stability of its overall economy. India has been aggressively pushing for economic and connectivity cooperation with its neighbors through sub-regional groups like the BBIN (Bangladesh, Bhutan, India and Nepal), first to exploit the region’s underutilized growth potential and, secondly, as a means to limit growing Chinese footprints in the region.

“India’s vision for long-term strategic cooperation and partnership with neighbors is to create this common and interdependent economic space,” Rae said. Through this, neighbors can trade, invest, and benefit from the Indian growth experience.

 (SAM)

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