New Delhi, Nov. 2 -- India's diplomatic relations with Nepal are anticipated to see a renewed momentum following Foreign Secretary Vikram Misri's two-day trip to Kathmandu this week - on Thursday and Friday - to discuss various bilateral issues. This visit comes as a key moment for India-Nepal relations following the political change in Kathmandu. Officials believe that this will offer New Delhi an opportunity to strengthen its relations with the new government led by Prime Minister Balendra Shah.
India and Nepal have been witnessing strong friendly relations, even in the past, with significant progress made across various issues. As per the Ministry of External Affairs communique, Misri's visit will continue the high-level regular exchange between the two nations to further strengthen all aspects of bilateral relations.
However, there are various strategic concerns to consider about this close relationship - l disputes over territory, increasing Chinese influence, open border security and differing economic and connectivity policies. How the two neighbouring nations approach these issues will be key to shaping their relations.
The most sensitive issue is the dispute over the territory of Kalapani, Lipulekh and Limpiyadhura. Nepal added this territory to its new political map in 2020; however, India does not recognise these territorial claims. This has been reignited following the objections raised by Nepal over using the Lipulekh route for the Kailash Mansarovar Yatra. As this is situated on the India-China border it has wider implications.
With growing economic and strategic influence from China, New Delhi must consider how this will affect its bilateral relations. Beijing has invested in infrastructure, Belt and Road Initiative projects and proposed railway lines to increase its influence in Nepal. Kathmandu are trying to spread its foreign partnerships to gain strategic independence; however, India wants to make sure it is not losing any ground from a security perspective. New Delhi will want to keep Nepal confident by working with them on development projects and keeping up the dialogue.
Security will also be a key issue. The open border between the two nations of roughly 1751km has brought them closer together socially, culturally and economically but has caused issues regarding human trafficking, drug smuggling and organised crime. The recent coordination meeting between the Sashastra Seema Bal and Armed Police Force demonstrates how important information sharing, collaboration and border control are to both nations.
Energy offers a lot of scope for the countries to work together. Nepal has great potential in hydro power and India's electricity needs are growing. Projects such as the Arun-III (900MW), Lower Arun Hydropower and transmission lines show how important energy is becoming. Trade of electricity between Nepal, India and Bangladesh can help improve regional connectivity.
Water management will also be an important issue. Nepal and India share several rivers such as the Kosi, Gandak and Mahakali. Controlling flooding, maintaining embankments and irrigation can cause issues for both nations. Working together on managing the rivers is important, especially considering the flood-prone areas of Bihar and Uttar Pradesh.
Economically, India is still Nepal's largest trading partner. Bilateral trade was around $9.38 billion in 2025-26. Railway links, integrated checkpoints, oil pipelines, road links and trade are important aspects. As Nepal are looking to diversify their trade routes, it will be important that India is a dependable and competitive partner.
Defence is another important aspect. Joint exercises such as Surya Kiran and military training are important. The two nations have had historic relationships between their armies. They will also need to address the long-standing request from Nepal for a review of the Treaty of Peace and Friendship signed in 1950.
This visit will give an opportunity to assess the many aspects that are involved in bilateral relations. While one visit cannot solve all of the long-standing differences, by keeping the dialogue up to date it will help to avoid issues becoming too contentious.
Overall, the challenge for India is to keep the close relationship they have with Nepal, whilst respecting their sovereignty and dealing with the increasing influence of China. For Nepal, they want to keep their strategic independence but also gain from their geographical, economic and historic relationship with India.
This diplomatic meeting will be watched closely to see if the two nations can move forward and create a more predictable strategic relationship.
Published by HT Digital Content Services with permission from Millennium Post.