According to top government sources, the Indian authorities are closely monitoring the new regime in Nepal and are prepared to offer full support. However, they expect a committed relationship in return. 

Last month, Nepal's Prime Minister Pushpa Kamal Dahal 'Prachanda' restructured the cabinet after ending a nearly 15-month alliance with the Nepali Congress due to significant disagreements among the top leadership of both parties. Instead, he formed a new coalition primarily comprising Left parties, including the party of former Prime Minister KP Sharma Oli. 

An Indian government official emphasised that the notion suggesting India backs corrupt politics in Nepal is entirely false. India is determined to rebuild trust in Nepal as soon as possible. 

Officials expressed concerns over the rising integration among South Asian nations and the heightened involvement of China, the USA, and Europe, which is a significant worry for India. 

While South Asia has experienced limited economic and geopolitical competition thus far, the growing interest from the US and China has led some parties to actively work towards creating an unfavourable environment for India in the region, officials noted. 

Officials stated that India is dedicated to comprehensive development in Nepal, which includes providing financial assistance, extending lines of credit, and engaging in development cooperation. 

Despite China's recent infrastructure missteps in Nepal, Prime Minister Oli is expected to maintain closer ties with Beijing for various reasons, according to officials. 

Sources indicated that with the new government in power, China will likely push for Nepal's endorsement of the Belt and Road Initiative (BRI). Recent intelligence reports also suggest Nepal will soon finalise the BRI implementation plan with China. 

Officials emphasised that India is opposed to Nepal entering into any such agreement and has been relatively successful in dissuading Nepal from doing so thus far. 

Officials stated that in 2017, Nepal signed the framework agreement for the Belt and Road Initiative (BRI), initiating work on 35 projects. However, due to India's persistent discouragement of Nepal, the number of projects was reduced to only nine. 

Officials highlighted that India's primary concern is the potential of Nepal falling into a Chinese debt trap, following a similar situation to that of Sri Lanka. Officials also advised Nepal to request soft, concessional loans, and grants from China instead of opting for commercial loans that could lead to a debt trap, according to sources. 

Officials emphasised the need for diligent efforts from the Indian side to counter China's extensive influence within Nepalese society. They noted that China is operating numerous FM stations in Nepal and using cyber syndicates to target India while enticing Nepalese citizens to China. 

An official stated that India is exerting considerable effort to promote stability in the region and acknowledges Prime Minister Oli's positive attitude towards India, highlighting the longstanding cultural and familial ties between the two countries. 

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