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How New Delhi should deal with the new Kathmandu

09 Mar 2026
2 min

Political Shift in Nepal

The recent elections in Nepal on March 5 marked a significant political shift, with rapper-turned-politician Balendra Shah and the Rastriya Swatantra Party (RSP) achieving a sweeping victory.

Rejection of the Old Political Guard

  • This victory sends a strong message rejecting the traditional political leadership.
  • The elections followed youth-led mass protests six months earlier, which resulted in the resignation of KP Sharma Oli as prime minister and the dissolution of parliament.
  • The protests were driven by issues like corruption, unemployment, and wealth disparities.

Youth-driven Political Change

  • The movement was part of a global trend of youth-driven mobilizations.
  • There is a challenge in converting public dissatisfaction into effective policy change.
  • Shah's potential premiership is seen as an opportunity for change and political stability.

Urgent Economic and Social Challenges

  • The new government needs to address domestic job creation, trade deficits, and low wages.
  • Inequality, worsened by natural disasters and climate vulnerability, is a significant issue.
  • Corruption is rampant, with allegations against nearly every former prime minister.

India's Role and Engagement

  • India must engage with the new generation of leaders while avoiding perceptions of interference.
  • As Nepal's largest trading partner, India should lead in economic cooperation.
  • Stability in Nepal could enhance connectivity projects and energy cooperation with India.

Geopolitical Considerations

  • China, which has supported communist forces in Nepal, may see its influence disrupted post-election.
  • India has an opportunity to redefine its relationship with Nepal amidst these changes.

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RELATED TERMS

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Geopolitical Considerations

Factors related to the influence of geography and power on international relations. In Nepal's context, this involves the strategic interests and influence of neighbouring countries like India and China on its political and economic developments.

Climate Vulnerability

The susceptibility of a nation or region to the adverse impacts of climate change. This includes risks from extreme weather events, sea-level rise, and changes in precipitation patterns, often exacerbating existing social and economic inequalities.

Trade deficits

A country's trade balance that occurs when the value of imports exceeds the value of exports. A persistent trade deficit can have implications for a nation's currency and foreign exchange reserves.

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