Nepal Prime Minister Madhav Kumar Nepal, who heads a twenty-two party coalition government, chose India for his first official foreign visit after assuming office two months back. This ‘goodwill’ visit was undertaken against the background of Nepal’s increasingly fragile peace process. The bilateral agenda was just a pretext. What brought him to New Delhi were several domestic factors. While this is not to say that there are no urgent bilateral issues between the two countries, the most crucial factor today is India’s support for Nepal’s coalition government.

The political crisis that triggered off in Nepal with Prime Minster Prachanda’s resignation yet again indicates not only the trials and tribulations of a fledgling democratic process but also points to the geopolitical vulnerability of the country sandwiched as it is between the two Asian giants. While India considers Nepal a part of its sphere of influence, it is increasingly being challenged by China’s inroads into Nepal. In fact, the growing Nepal-China nexus should be seen in the context of India-China power competition in Asia.

Ever since the peace agreement signed between the Maoists and Nepal government in 2006, Nepal has been in the middle of political crisis delaying the constitution making process. The recent row between the Nepal Army and the government leading to the resignation of Prime Minister, Pushpa Kamal Dahal protesting the President’s intervention in the decision, has aggravated the situation further. The fact is that UCPN-Maoist is not only the largest political party in the Parliament but also important to the success of peace process. The House needs two-third’s majority to pass the bills.

There has been a major shift in China’s foreign policy towards Nepal since the Maoist ascendance to power. China had earlier adopted a policy of ‘non-intervention’ in the internal matters of Nepal and largely stayed out of Nepalese internal politics. However, the demise of the monarchy and the ascendance of political parties have forced China to reshape its Nepal policy. Moreover, frequent protests by Tibetans in recent months alerted the Chinese to the possibility of the China-Tibet border being misused.