Nepal is determined to build a genuinely transformative relationship with its “close neighbour and most important partner,” Foreign Minister Shisir Khanal said during talks with Indian External Affairs Minister S. Jaishankar, signalling a renewed effort to strengthen bilateral ties following recent tensions over a border dispute.
Welcoming Khanal, Jaishankar said India’s message to Nepal’s new government was one of collaboration and cooperation, adding that both countries had an opportunity to “decisively shift the trajectory of India-Nepal relations.”
Notably, neither side publicly highlighted the contentious border issue after the meeting. Nepal described the discussions as productive, focusing on trade and economic cooperation, cross-border connectivity, energy partnership, water resource management and people-to-people ties.
Diplomatic sources indicated, however, that both sides discussed ongoing work by joint field survey teams on boundary-related matters and agreed to hold an early meeting of the existing border management mechanism. The two countries also reaffirmed their commitment to resolving outstanding issues through dialogue, understanding and friendship.
Focus on Development-Oriented Partnership
During his visit to India, Khanal said Nepal aims to transform its long-standing civilisational ties with India into a modern, development-oriented partnership.
“Nepal has placed the highest priority on its relationship with India. Under the new government, we are ready to engage substantively, purposefully and at the highest possible levels,” he said, while also thanking India for assistance with fuel and fertiliser supplies during the West Asia crisis.
The visit came shortly after a trip to India by RSP chairman Rabi Lamichhane. Together, the engagements have helped stabilise relations following disagreements over territorial claims linked to the resumption of the Kailash Mansarovar Yatra route through the Lipulekh Pass.
Khanal said he hoped the discussions would pave the way for future high-level visits and mark the beginning of a new chapter in bilateral relations. Both countries are reportedly working to arrange a visit to India by Nepal’s Prime Minister Balendra Shah, who has not travelled abroad since assuming office. Prime Minister Narendra Modi has previously invited him to visit India.
Cooperation Across Multiple Sectors
Jaishankar reiterated India’s commitment to working with Nepal for mutual progress and prosperity, saying the priorities of the Shah government aligned with several Indian initiatives in the neighbourhood.
He noted that the bilateral relationship is anchored in trust, goodwill and mutual benefit, and highlighted cooperation in development projects, connectivity, hydropower, education, healthcare, capacity building, digital technology, culture and sports.
Following the meeting, Jaishankar virtually handed over 72 health facilities and 12 cultural heritage projects completed under the post-2015 earthquake reconstruction programme.
The two ministers also announced the operationalisation of a cross-border personal remittance initiative. In addition, they witnessed the exchange of a memorandum of understanding between Digital India Bhashini and Kathmandu University to jointly develop a national digital infrastructure and voice-based language translation platform for Nepal.
Expanding Partnership into New Areas
Jaishankar said that while bilateral ties have steadily expanded in areas such as trade, investment, energy and development cooperation, there is now scope to deepen collaboration in emerging sectors including startups, artificial intelligence, information technology and renewable energy.
Describing Nepal as a priority partner, India also welcomed the completion of internal procedures required to bring into force the India-Nepal Mutual Legal Assistance Agreement in Criminal Matters.
The agreement is expected to provide a formal legal framework to strengthen cooperation in the investigation, prosecution and judicial handling of cross-border crimes, enhancing law enforcement coordination between the two countries.
