[Against this backdrop, India should warn Nepal
about the dangers of falling into China’s debt trap in the pursuit of
infrastructure development. After all, countries from Malaysia to Pakistan are
having second thoughts about China’s marquee Belt and Road Initiative of
transnational connectivity. But this by itself won’t be enough to dissuade
Nepal from being lured by Chinese promises unless India delivers on its own
promises to Nepal and in the region. A slew of Indian projects in Nepal have
been hanging fire for years. These include big hydro-power projects like
Pancheshwar, Arun III and Upper Karnali.]
A TOI Editorial
Nepal’s decision to pull out of the first joint
military drill by member countries of the Bay of Bengal Initiative for
Multi-Sectoral Technical and Economic Cooperation (Bimstec) stands in sharp
contrast to Nepal army’s slated participation in a 12-day long military
exercise with China later this month.
The Bimstec exercise was announced by Prime
Minister Narendra Modi at the Bimstec summit in Kathmandu last month. But
following opposition from various Nepali political quarters, Nepal’s Prime
Minister KP Oli instructed his army not to participate in the multilateral
exercise. At the very least, the cancellation indicates Nepal’s reluctance to
see Bimstec take on a significant security role. At worst, it underlines
Nepal’s strategic drift away from India and towards China.
Notwithstanding many issues with its economic
policies, the Narendra Modi government has largely done well on the foreign
policy front. But relations with Nepal appear to be an exception to the latter.
From India’s response to the 2015 adoption of a new Nepali constitution to the
subsequent Madhesi blockade that was seen to have an Indian hand, New Delhi has
got its Nepal calculations wrong. This in turn has given China an opening to
increase its footprint in Nepal. And with deeper pockets, Beijing can offer
big-ticket projects that New Delhi won’t be able to match.
Against this backdrop, India should warn Nepal
about the dangers of falling into China’s debt trap in the pursuit of
infrastructure development. After all, countries from Malaysia to Pakistan are
having second thoughts about China’s marquee Belt and Road Initiative of
transnational connectivity. But this by itself won’t be enough to dissuade
Nepal from being lured by Chinese promises unless India delivers on its own
promises to Nepal and in the region. A slew of Indian projects in Nepal have
been hanging fire for years. These include big hydro-power projects like
Pancheshwar, Arun III and Upper Karnali.
Demonstrating similar lethargy, the motor
vehicle agreement inked under the Bangladesh-Bhutan-India-Nepal framework too
has hit a roadblock thanks to Indian bureaucracy. One way out could be to
involve the Indian private sector in delivering on projects in the
neighbourhood, rather than depending on Indian public sector undertakings which
are notoriously lethargic. Speed is of the essence if India is to offer Nepal
alternatives to Chinese projects. India needs a sophisticated Nepal policy that
combines reliability with subtlety.
This piece appeared as an editorial opinion in
the print edition of The Times of India.