OPINION | India's Lipulekh Trade Challenge With Nepal's Balen Shah Government
After a prolonged period marked by significant political upheaval, Nepal has embarked on a transformative journey, culminating in what many are calling a Gen-Z revolution in September 2025. This particular episode led to the establishment of a new government, reflecting the desires and aspirations of a younger generation eager for change. Amidst this backdrop, the Nepali populace has overwhelmingly cast their votes in favor of a newly formed political party, the Rastriya Swatantra Party (RSP), under the leadership of Balendra Shah, or Balen. At 35 years old, he is the youngest leader in Nepal's history and the first Prime Minister from the Madhesi community. Shah was sworn in as Prime Minister of Nepal just last month, leaving the international community, particularly in neighboring India, both surprised and intrigued by these developments.
The relationship between India and Nepal has historically been characterized by close political, economic, and cultural ties, bolstered by open borders that facilitate movement and connection between the two countries. This unique aspect of their relationship stands in contrast to India's interactions with other neighbouring nations, where border regulations are more stringent. However, since 2014, the bilateral relations between New Delhi and Kathmandu have experienced numerous challenges. Various incidents and policy decisions have led to a deterioration of these once-strong ties, marking a period of unprecedented strain in what was traditionally considered a robust partnership.
After the BJP came to power in May 2014, Prime Minister Narendra Modi chose Nepal to be his first official foreign destination. The visit turned out to be a historical one wherein India committed to resolving the pending border issue with Nepal as well as revisiting the 1950 Friendship Treaty with Nepal, a long pending demand of Kathmandu. India even committed to establish a foreign secretary-level talks to resolve the border........
