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By P.R. Pradhan

Nepal is geographically situated between two powerful neighbors—India and China. Numerous Nepali delegations consisting of political leaders, bureaucrats, journalists, academicians, professionals, and others frequently visit both countries at the invitation of various organizations.

Keshab Bhattarai, a well-known intellectual, recently wrote on his X (formerly Twitter) account:

“China and India have made tremendous progress. Our leaders, government officials at the policymaking level, intellectuals, professionals, and journalists are frequently visiting both countries. But do they actually learn anything from these visits, and have they made any effort to apply such lessons to Nepal’s development?”

This is a genuine and timely question. In particular, leaders and officials at the policymaking level should draw lessons from the developmental trajectories of China and India and reflect on why Nepal has failed to achieve similar progress.

As Nepal and China mark the 70th anniversary of the establishment of diplomatic relations, it is worth noting that seventy years ago, Nepal’s economic position was relatively better than that of many Asian countries. Today, however, China has risen to become the world’s second-largest economy, and India ranks as the fourth. Nepal, unfortunately, is not even in the race.

Coincidentally, this writer had the opportunity to attend the Shanghai Cooperation Organization (SCO) Media and Think Tank Summit held in Zhengzhou, Henan Province, China, from July 23 to 27. The summit brought together over 400 participants from various countries, including India. Notably, the largest delegation came from Russia, indicating a shifting global power balance. The event highlighted the importance of regional cooperation and the emergence of China as a global power promoting multilateralism in place of unilateral dominance.

From Nepal’s perspective, China remains a friendly neighbor with no bilateral disputes. In contrast, Nepal continues to face numerous challenges in its relationship with India. In addition to long-standing border issues, the list of problems includes:

Trade Barriers: India recently halted the import of stainless steel products manufactured in Nepal.

Energy Restrictions: India has refused to import electricity generated with Chinese involvement.

Sky Routes: India has not approved new air routes crucial for the full operation of Nepal’s international airports in Bhairahawa and Pokhara. It also opposed the use of the Instrument Landing System (ILS), citing that its coverage area overlaps Indian airspace.

Project Obstruction: India has objected to the construction of a solar power project in western Nepal that is funded by Chinese investment.

Economic Blockades: Nepal has suffered from four Indian-imposed economic blockades throughout its modern history.

Against these backdrops, it is increasingly clear that Nepal must diversify its trade and transit options and reduce overdependence on India. Strengthening connectivity with China and utilizing Chinese ports for international trade is a strategic necessity.

Nepal should also actively engage in Chinese regional cooperation frameworks such as the Belt and Road Initiative (BRI) and the Shanghai Cooperation Organization (SCO) and BRICS. In particular, the country should focus on establishing Special Economic Zones (SEZs) in its remote northern regions and develop joint-venture industries in partnership with Chinese enterprises. These industries could serve the growing and affluent Chinese market. Given that labor costs in China are rising, Nepal could attract Chinese investors seeking lower-cost production bases.

However, for any of this to succeed, a fundamental change in Nepal’s political attitude is essential. Nepali leaders must abandon their submissive mindset and stop prioritizing pleasing Indian authorities for political gain.

Sustainable economic development is vital for preserving Nepal’s sovereignty and independence. Considering India’s current posture towards Nepal, it is clear that relying solely on India will not help the country meet its economic aspirations. Although Nepal is landlocked, it must reject the notion that it is “India-locked.”

Nepal must embrace a broader, more balanced foreign policy and economic strategy—one that leverages its unique position between two rising powers. Only then can it carve out a path toward true independence and prosperity.