RSTV - The Big Picture: Nepal: The China Tilt

Guests:

1. Srikanth Kondapalli, Professor, Chinese Studies, JNU
2. S.D. Muni, Foreign Affairs Expert
3. Sachin Chaturvedi, Director General, Research and Information System for Developing Countries
4. Shiv Shankar Mukherjee, Former, Ambassador

Why in news?

• Analysts observed a tilt by Nepal towards China to find an alternative to their dependence on
• Nepal’s new administrator KP Oli has said he needs to extend ties with China to discover more choices in order to get more dealings with India “with regards to the circumstances”.

Nepal – China deepening ties

During Nepal’s constitutional crisis, China has taken advantage of anti-India feeling among Nepalese government and citizens and has moved closer to China.

 List of important agreements/MOUs:

• The agreement on transit through China where China has agreed to provide the Tianjin seaport for the transit of Nepali goods imported from third countries.
• The proposal on the connectivity of Nepal with the Tibet rail network.
• Agreement on Economic and Technical support to implement Pokhara Regional International Airport Project.
• China has agreed to upgrade two road links between Nepal and Tibet, agreed to extend the Chinese railway to Kathmandu and then to Lumbini.
• China has given its nod to a long-term commercial oil deal.
• China has also agreed to build oil storage facilities for Nepal
• Nepal has struck a major deal with China Gezhouba Group Corporation (CGGC) for developing a 1,200 MW Budhigandaki Hydroelectric Project, which will be the biggest hydro project in Nepal
• Nepal has started accessing the internet from China. The commercial operation of Chinese bandwidth project now ends Nepal’s sole dependence on India for internet bandwidth. It is considered as a loss for India, both revenue wise and strategically.

China’s strategic objectives

• To upgrade these ties, China has offered zero-tariff treatment to 60 percent good of Nepal.
• At the point when there was bandh of fuel and vital supplies on India-Nepal borders because of a challenge by Madhesi, Beijing gave 1.3 million liters of oil to Nepal as a concede, with the guarantee of following up after a business course of action was marked between organizations on the two sides.
• Nepalis see Chinese aid as positive due to its emphasis on infrastructure improvement.
• The Tibetan group in Nepal are a genuine worry for the Chinese authorities. In April 2008, China could influence its impact on Nepalese government to crack down on Tibetan activities. Consequently, it is right to place that China’s business ties are reclassifying the power conditions with that of Nepal.
• Boosting social and cultural ties: There are currently 19 China Study Centers (CSC) and Confucius Institutes in Nepal to advance Chinese dialect and culture.
• Beijing has declared Nepal as an “official destination” for its nationals. The town of Pokhara turned into a hot fascination after Chinese online manuals portrayed it as one of the best ten spots.

 India needs few alterations in foreign policy before it’s too late

1. Increase People-to-People Engagement:

• India needs to regard Nepal’s sway and take the risk to increase political confidences too develop business ties with the group.
• Social and religious interface ought to be utilized for injecting a feeling of ‘unity’.

2. Better Implementation and Delivery:

• Indian government should consider every one of the undertakings that were guaranteed to Nepal and should ensure that these tasks are finished on time.
• This is vital for being a piece of Nepal’s development story, not simply by a method for giving awards but rather by making various job openings and adding to its overall development.

Way Forward

As close neighbors, India and Nepal share a kind relationship of kinship and participation portrayed by open borders and profound attached people-to-people contacts of connection and culture. They are cultural partners with historic, spiritual and civilizational connects between the general population and the two countries have a key stake in each other’s prosperity and security.

The biggest drawback of India’s foreign policy has been the failure to deliver on promises made to our partners. India has failed at times to complete the projects on time and even if completed the quality of construction has been poor. India needs to address this delivery deficit in South Asia and IOR. So India has to continue its approach of delivering positive outcomes via wide-ranging developmental assistance to win the hearts and minds of the people in Sri Lanka.