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Nepal's finance minister urges a fresh start in ties with India, moving past anti-India nationalism

Finance Minister Swarnim Wagle said Nepal wants to reset its relationship with India, focusing on trade, connectivity and energy while handling disputes constructively.

Swarnim Wagle returned to Kathmandu following a three-day trip to New Delhi at the invitation of Finance Minister Nirmala Sitharaman. In an interview, he said the Balendra Shah government aims to reset Nepal-India ties by shifting away from nationalist rhetoric toward trade, connectivity, air routes, rail links and energy projects. While the boundary dispute will continue to be raised, the approach will be constructive rather than confrontational.

Wagle highlighted Nepal's need to work within a changing geopolitical environment, acknowledging India's concerns about Chinese-financed energy projects and clarifying that Chinese financing is limited. He also mentioned that Prime Minister Shah is expected to make his first bilateral foreign visit to India before the end of 2026, likely between the Dashain and Tihar festivals.

Why it matters

The shift could reshape trade and security dynamics between two neighboring South Asian powers.

In this story

Nepal-India relationstrade treatyconnectivity projectsboundary disputeChinese financinggeopolitical realityair routesrail links
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