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Nepal's current political and economic situation UPSC NOTE


  • Widespread dissatisfaction and uncertainty due to political and economic issues.

  • Unclear direction for Nepal's democracy. there is also confusion about the direction in which it is headed. And, there are a lot of questions 

Questions about the 2015 Constitution:

  • Was it rushed and poorly debated?

  • Should Nepal remain a secular republic or revert to a Hindu identity?

  • Should the monarchy be restored due to weak institutions?

  • Does federalism threaten Nepal's unity?

  • Rampant corruption and misgovernance threaten Nepal's post-COVID recovery.

China's Growing Influence:

  • Recent change in Nepal's government benefits China.

  • New coalition includes pro-China Communist Party (CPN-UML).

  • China welcomes this alliance and seeks to expand its influence.

  • Nepal's Foreign Minister prioritized China over India in his first visit.

  • Nepal revived cooperation on China's Belt and Road Initiative (BRI) despite debt concerns.

  • Increased China-Nepal military engagement.

Nationalist Movements:

  • Rise of both far-left and far-right forces in Nepal.

  • Far-left aligns with China and may be anti-India.

  • Far-right calls for restoring the Hindu monarchy.

Potential for Instability:

  • Political instability could invite foreign interference in Nepal.

  • This could create a situation similar to the 1990s, when Pakistan used Nepalese territory for terrorism against India.

India's Role:

  • India should avoid interfering in Nepal's internal affairs.

  • India should offer a new development roadmap for Nepal that:

  • Focuses on improving the lives of Nepali people.

  • Offers innovative solutions in health, education, and other sectors.

  • Makes Chinese projects like BRI less attractive.

  • High-level Indian engagement can:

  • Promote optimism and investment.

  • Encourage cross-party consensus on major projects.

  • Address Nepal's concerns about equality and sovereignty.

  • India's diplomatic style needs to be respectful to avoid a "big brother" attitude.


  • The challenges in India-Nepal relations are complex but not insurmountable.

  • India's new government has an opportunity to improve relations by offering a more helpful and respectful approach.



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Nepal's current political and economic situation UPSC NOTE
Nepal's current political and economic situation UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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