Nepalese prime minister K P Sharma Oli has just returned from six days in India – his first foreign trip since assuming office in October last year. The visit underscores the importance that Kathmandu is placing in restoring normality to its ties with its southern neighbour.
It was the first visit by a Nepalese prime minister to New Delhi since Baburam Bhattarai’s in October 2011, and Mr Oli was accompanied by a high-level delegation including his deputy, the home minister and the finance minister.
Mr Oli has been explicit that the main reason for his visit was to “clear the misunderstanding” and to take ties between the countries to the same level as in 2014, when Indian prime minister Narendra Modi visited Nepal.
After his discussions with Mr Modi, Mr Oli said: “The misunderstanding that persisted in the last few months is no longer there. I believe our relationship will greatly benefit from our discussions.”
The two countries signed nine agreements including infrastructure, rail and road transit.
This visit assumes great significance as Indo-Nepal ties had been strained due to agitation by the Madhesis community and others opposing Nepal’s new constitution, saying it failed to address their concerns about representation.
The protesters had blocked key trading points for almost four months, crippling supplies of petroleum products, medicines and other commodities. The Nepalese government accused India of imposing an unofficial blockade to support the Madhesis, and there were suggestions that Mr Oli might visit Beijing before New Delhi, thereby breaking a long-standing tradition.
But after the blockade ended on February 8, with concessions to the Madhesis, Mr Oli reached out to India. Before the visit, he tried to allay Indian concerns by suggesting that his government wants close ties with both New Delhi and Beijing and that he doesn’t believe in using one neighbour against another.
India had raised concerns over Nepal’s constitution through back channels to avoid being accused of interfering with the process. There was a sense that Nepal had ignored India’s concerns, along with a suggestion to delay promulgation for a few days in view of protests. India conveyed to Nepal a list of seven amendments to make the constitution amenable for alienated groups living mostly in the Terai region bordering India. The Nepalese government argued that “Nepal’s constitution is better than the Indian constitution” and “the most progressive in South Asia”.
Communist leaders in Nepal have taken a strong anti-India line, underlining that “any act from anywhere that amounts to undermining our sovereignty is not acceptable to the Nepalese”.
Indo-Nepal relations took a nosedive, with Kathmandu blaming India for growing fuel shortages, implying that its neighbour had imposed an informal blockade by not allowing fuel lorries to cross the border into Nepal. New Delhi blamed this disruption on the mass protests. Nepal imports almost all its oil from India, and road links to China through the Himalayas have been blocked since last year’s earthquake.
As tensions with India mounted, China reopened its border with Nepal in Tibet. The disruptions underscore the Himalayan kingdom’s profound economic vulnerability, further inflaming anti-India passions.
Historically, Nepal has had close ties with India. But the political uncertainty in Nepal has fuelled anti-Indian sentiments, allowing China to enlarge its presence and even offer financial assistance for drafting the constitution. China overtook India as Nepal’s biggest foreign investor in 2013 with its funding of a $1.6 billion (Dh5.9bn) hydropower project.
Against this backdrop, Mr Modi made Nepal a priority. He visited in August 2014 and later pledged $1 billion for reconstruction after the earthquake in April last year.
Mr Modi was invited to address Nepal's parliament and he was given a rousing welcome. Mr Modi’s speech was a graceful reflection on the turbulence that has shaped Indo-Nepalese ties in recent years with a promise of a change of course.
Mr Modi also concluded three memoranda of understanding, including one on the 5,600-MW Pancheshwar project, a hydropower project to be developed in the Mahakali River bordering Nepal and India. He also promised prompt implementation of Indian projects in Nepal.
With India welcoming the amendment of the constitution to accommodate the demands of Madhesis and the lifting of the blockade, Mr Modi has another opportunity to reshape the contours of New Delhi’s relations with Kathmandu. A Nepalese leader has reached out to India and India has reciprocated well. The challenge will be to ensure that this momentum is not lost.
Harsh V Pant is a reader in international studies at King’s College, London
