How New Delhi should deal with the new Kathmandu

The sweeping victory of rapper-turned-politician Balendra Shah and the Rastriya Swatantra Party (RSP) in Nepal’s elections held on March 5 sends a strong message to the old guard of the country’s political system. It has been decisively rejected. The polls come only six months after youth-led mass protests roiled the country, forced the resignation of KP Sharma Oli as prime minister, and led to the dissolution of its parliament. The Gen Z-led movement, initially triggered by a ban on social media platforms but soon encompassing broader grievances over corruption, unemployment and widening wealth disparities, was part of a wave of youth-driven mobilisations across the world. The challenge, however, has always been in translating mass disenchantment into tangible policy change, the day after. Shah, now poised to become prime minister, has the opportunity to bring change while ushering in a measure of political stability — something Nepal has severely lacked since 2008, having seen more than a dozen governments, none of which completed a full five-year term.

The scale of the shift from the old to the new can be measured by the fact that the RSP is not even four, and Shah is only 35 years old. The new government has no time to waste. Domestic job creation has stalled amid instability. Trade deficits and low wages continue to plague the remittance-driven economy, while inequality — exacerbated by natural disasters and climate vulnerability — has pushed many young Nepalis to leave the country. An equally pressing imperative is to bring an end to the entrenched culture of corruption, with nearly every former PM facing allegations.

For India, which has historically maintained close ties with Nepal’s traditional leadership, deepening engagement with the new generation of leaders is essential. New Delhi must also demonstrate the dexterity to engage with Nepal while avoiding the perception of external interference. Finally, India should take the lead in economic cooperation with Nepal. India remains Nepal’s largest trading partner and its most accessible market, and greater domestic stability could accelerate connectivity projects and energy cooperation between the two countries. The elephant in the room is China, of course, which has actively backed the communist forces in Nepal. But after the electoral drubbing, Beijing’s patronage networks are bound to be disrupted. New Delhi must not fritter away its opportunity to redefine its relationship with Kathmandu.