Nepal’s PM Balen Shah Chooses India for First Foreign Visit

The CSR Journal Magazine

Nepal’s Prime Minister Balen Shah is set to visit India in November, marking his first bilateral foreign trip since assuming office in March. The three-day visit is anticipated to take place in the third or fourth week of the month, during which he will engage in discussions with Indian Prime Minister Narendra Modi. This visit is significant as it follows Shah’s attendance at the UN General Assembly in September, where he represented Nepal.

Shah has been in office for approximately eight months, and this trip will be his inaugural formal engagement with an international counterpart. Historically, India has been the first foreign destination for Nepal’s prime ministers; however, his predecessor, KP Sharma Oli, opted for China during his first international tour in December 2024, citing a lack of invitation from India.

The choice of India for this visit underscores the traditional diplomatic ties between the two nations, which have often been characterised by shared interests and mutual cooperation. Shah’s decision may reflect a desire to strengthen these ties further, especially in light of recent challenges faced by Nepal.

Main Agenda for the Visit

On October 15, The Kathmandu Post reported that officials from Nepal and India exchanged lists of projects slated for inauguration during the upcoming visit. Among the key initiatives are the India-funded Nepal Police Academy, an integrated check post near Sunauli, and various bridge constructions. Additionally, the construction of the Dodhara Chandani check post, the Lower Arun hydropower project, and the Siliguri-Jhapa petroleum pipeline are expected to commence, with several agreements and memorandums of understanding under consideration.

Hydropower development is a crucial aspect of the discussions, highlighted by India’s NHPC projects, including the 750 MW West Seti, 480 MW Phukot Karnali, and 450 MW Seti River-6. Other significant topics include the Ayodhya-Janakpur railway and Indian support for Nepal’s artificial intelligence initiatives. Despite these collaborative efforts, several challenges persist, including border disputes such as the Kalapani-Lipulekh issue, trade imbalances, and transit agreements.

Moreover, the postponed Pancheshwar Multipurpose Project remains a point of contention. In a display of solidarity, India provided over 130 tonnes of relief supplies and dispatched 54 rescue specialists following the Bhotekoshi floods on August 26. PM Modi extended assistance, which Shah acknowledged in parliament on September 2. Currently, Nepal is seeking Indian grants and low-interest loans for reconstruction efforts, with the Finance Minister already engaging in discussions in New Delhi.

Significance of the Upcoming Visit

Initially, Prime Minister Shah exhibited reluctance in engaging with foreign officials. However, his stance began to change after a meeting with Indian Ambassador Naveen Srivastava in August. On September 30, Nepal’s Foreign Minister Shisir Khanal indicated that both nations are keen on a visit that prioritises goal achievement and cooperation.

This upcoming visit is seen as pivotal for enhancing bilateral relations, especially in light of the recent challenges faced by both nations. The engagement aims to solidify existing partnerships and explore new avenues for collaboration, particularly in infrastructure and development projects.

As Nepal navigates its diplomatic landscape, the choice of India as the first destination reflects a strategic approach to fostering regional ties. The visit is expected to set the tone for future interactions and may pave the way for more robust cooperation between the two countries.

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