Nepal will continue to maintain strong and independent ties with both India and China, refusing to replace one relationship with the other, Foreign Minister Shisir Khanal said, stressing that Kathmandu’s foreign policy will be guided by its national interest.
Speaking at NDTV World’s Anviksha India-Nepal Dialogue in Kathmandu on Thursday, Khanal used a family analogy to underline the importance of Nepal’s relationships with its two powerful neighbours.
“You can’t tell your father that you’ll replace him with your mother or vice versa,” Khanal said, emphasising that Nepal views its ties with India and China as distinct relationships with their own historical and civilisational significance.
“We have a wonderful relationship that we would like to maintain with both India and China. But we do not want to supplement one with the other,” he said.
Nepal’s foreign policy centred on national interest
Responding to a question about Kathmandu’s policy of maintaining a balance between India and China, Khanal said Nepal’s approach was not about choosing sides but about protecting its own national interests.
He compared the country’s diplomatic relationships to relationships within a family, saying each has its own history, significance and merit.
“My job is to think about work towards strengthening Nepal’s national interest, so our relationship dynamics are based on Nepal’s national interest rather than anything else,” he said.
Khanal also pushed back against the perception that Nepal has come increasingly under China’s influence.
“I would like to disabuse the world of the notion that our country is captured by our northern neighbour,” he said, referring to China.
While acknowledging Nepal’s close relationship with Beijing, Khanal highlighted the long history of trade and economic engagement between the two countries.
India remains Nepal’s biggest trading partner
At the same time, the minister stressed the enormous economic importance of India to Nepal.
“If the Chinese economic presence has increased, I would like to see the same for India,” Khanal said.
He pointed out that around two-thirds of Nepal’s total trade is with India, describing India as the single largest trading partner for the Himalayan nation.
"BRI has delivered zero returns," Says Khanal
Khanal also sought to play down the significance of China’s Belt and Road Initiative (BRI) in Nepal, pointing to what he described as a lack of financial returns from the initiative.
Nepal signed a BRI framework agreement with China in 2017 and an implementation agreement last year. However, Khanal said the country had received no money for BRI projects over the past decade.
“Do you know how much money Nepal got out of BRI? $0 for BRI projects in the last 10 years,” he said.
Nepal invites Indian companies to invest
Khanal also extended an invitation to Indian businesses, saying Nepal is “open for business” and wants greater private-sector investment from India.
“To Indian companies and the private sector I want to say we're open for business. The country wants investment, and we want to work with you and we will make it easy for you to invest and do business in Nepal,” he said.
He identified energy, tourism and technology as priority sectors for investment, while also highlighting infrastructure and connectivity, including air and road networks.
Nepal and India already have a framework agreement for the export of 10,000 megawatts of electricity, an area Kathmandu sees as having significant potential for deeper bilateral economic cooperation.
Khanal also pointed to Nepal’s technology sector, saying the country has already seen nearly $1 billion in technology services exports.
