Opinion Kathmandu beginning

Prime Minister Narendra Modi appears to have matched the high expectations in Nepal that he would inaugurate a fresh start in bilateral relations. If Nepal’s elites were chafing under Delhi’s prolonged political neglect, its youthful population had never seen a charismatic Indian leader. By all accounts, many across the border were enthused by the PM’s promise of befriending neighbours. Modi did not disappoint. With a speech to Kathmandu’s parliament and constituent assembly, widely described in Nepal as “magical”, and by wading into welcoming crowds in Kathmandu, Modi may have taken away much of the recently accumulated poison in an old relationship.

In the constituent assembly, Modi sought to dispel fears in Nepal that the BJP government might back the restoration of a Hindu monarchy ousted in a bloody democratic struggle in the middle of the last decade. In unambiguously endorsing the idea of an “inclusive, federal, democratic republic”, Modi insisted that it was not India’s business to build the domestic consensus in favour of a new political order. He reminded the legislators of the significance of their work in drafting a constitution. Comparing the writing of the constitution to the compilation of the Upanishads and praising Nepal’s leaders for choosing the path of peace rather than war, India’s PM highlighted the bright future that awaits a Nepal at peace with itself.

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By emphasising the absolute sovereignty of Kathmandu and affirming that Delhi will not interfere in its internal affairs, Modi tried to address one of the main concerns that animates Nepal’s elites — the deep fear of India. While not uncommon among small countries that live next to a large nation, Delhi had found it hard all these decades to overcome the entrenched suspicion of India in Kathmandu. Modi confronted this central problem head-on by offering to revise the 1950 India-Nepal Friendship Treaty — for many in Kathmandu, the very symbol of an unequal relationship. Modi complemented the new political emphasis on sovereign equality with a persuasive vision for shared economic prosperity through the development of transborder connectivity, agriculture, tourism and hydroelectric power. He also offered a concessional line of credit of $1 billion that Kathmandu will be free to spend on its own priority national projects. Modi’s spell in Kathmandu marks a historic break from an uncomfortable past. The PM, however, should know that magical illusions don’t last long. He needs an effective institutional mechanism at home to turn the new promise of India’s Nepal policy into reality.