Nepal-India Diplomatic Talks

Nepal is pursuing a new action-oriented diplomacy towards India focusing on economic cooperation such as hydropower exports and digital connectivity, while unresolved border disputes remain a challenge. Hydropower exports to India are set to increase significantly, positioning Nepal as a regional energy hub.

Nepal will host the international Bodhi Dialogue conference from June 16 to 19 in Kathmandu to discuss economic and geopolitical issues involving South Asia. The event is organized by the Center for Social Innovation and Foreign Policy and will include Nepali and international experts.

Recent visits by Nepal's Rastriya Swatantra Party chairman and Foreign Minister to India have enhanced Nepal-India diplomatic relations and trust. India reaffirmed Nepal as a priority partner under its 'Neighborhood First' policy, while Nepal aims to maintain balanced ties with both India and China.

Nepal's Foreign Minister Shisir Khanal urged shifting Nepal-India relations from historical geopolitical tensions to development and economic cooperation. He emphasized diplomacy grounded in good governance and accountability during talks covering trade, connectivity, energy, water, and people-to-people ties with Indian officials.

During his visit to India, Nepal's Foreign Minister Shisir Khanal emphasized resolving border disputes through diplomatic dialogue, underscoring shared economic cooperation and prosperity initiatives. The launch of cross-border digital payment systems between Nepal and India was also highlighted to facilitate seamless transactions.

Nepal's Foreign Minister Shisir Khanal clarified that Nepal seeks to resolve the border dispute with India solely through bilateral dialogue, denying any requests for third-party mediation. Both sides agreed to reactivate bilateral mechanisms and schedule meetings for technical border work, excluding disputed areas like Kalapani and Susta.

Nepal and India finalized agreements to operationalize peer-to-peer cross-border digital payments, resolving technical and cost issues. Additionally, both countries exchanged agreements on health and cultural projects tied to Nepal's post-earthquake reconstruction, enhancing bilateral cooperation.

Nepal's Foreign Minister Shisir Khanal began a three-day official visit to India to hold talks with Indian External Affairs Minister S. Jaishankar. The discussions focus on enhancing bilateral cooperation in trade, investment, connectivity, energy, and people-to-people relations.

Narendra Modi invited Nepal's Prime Minister Balendra Shah to visit India during a meeting with Rabi Lamichhane. Both leaders discussed resetting Nepal-India relations with a focus on development diplomacy and bilateral cooperation, rejecting third-party mediation in border disputes.

Rabi Lamichhane, chair of Nepal's Rastriya Swatantra Party, met Indian Prime Minister Narendra Modi in New Delhi to discuss Nepal-India ties and cooperation, highlighting Nepal as a priority partner under India's 'Neighbourhood First' policy. Modi expressed support for Nepal's new leadership and collaboration between RSP and BJP.

Rabi Lamichhane proposed advancing Nepal-India relations through 'development diplomacy' focusing on economic integration, infrastructure projects like a Raxaul-Kathmandu railway, and practical dialogue to resolve border disputes. He emphasized rejecting ultra-nationalist slogans in favor of historical fact-based discussions.

Rabi Lamichhane met Indian Home Minister Amit Shah in New Delhi, where both leaders expressed commitment to strengthening Nepal-India ties. Shah congratulated Lamichhane on electoral success and wished the new government well.

Nepal's government spokesperson Sassmit Pokharel clarified that border disputes with India will be resolved through diplomatic channels and existing mechanisms. The Prime Minister did not admit to Nepalese encroachments after expressing surprise at the reports.

Nepal's Foreign Ministry clarified Prime Minister Shah's remarks, reaffirming Nepal's position to resolve boundary issues via diplomatic dialogue with India. Joint technical teams from both countries are actively addressing boundary demarcation and related issues.

Prime Minister Balendra Shah introduced new discussions on the Nepal-India border dispute involving Lipulek, Kalapani, and Limpiyadhura, seeking resolution through diplomatic dialogue including involvement of the UK government. Nepal and India agreed to use historians and surveyors to address the dispute based on British India's departure.

Prime Minister Balendra Shah stated in Parliament that both Nepal and India have encroached on each other's territories. He noted an official diplomatic note was sent to India and that expert teams will be formed to resolve the disputes.