Having recently overtaken its former colonial master to become the world's fifth-largest economy, India's star certainly appears to be rising. But if the country remains committed to the current government's development strategy, the economy could lose its momentum well before achieving escape velocity. There is a buzz in India today – a sense of limitless possibilities. If it maintains its current growth rate of 6-7% per year, it will soon overtake stagnant Japan and Germany to take over third place. But by 2050, India’s workforce will start shrinking, owing to demographic aging. Growth will slow. That means India has only a narrow window in which to grow rich before it grows old: with a per capita income of just $2,500, the economy must grow by 9% per year for the next quarter-century. That is an extremely difficult task, and the current election may well determine whether it remains possible at all. In pursuit of rapid growth, the Indian government intends to follow a tested road map: the same path that Japan took in the immediate postwar decades, and that China took after the death of Mao Zedong. During the first stage of the journey, labour flows out of the traditional agriculture sector as employment increases in low-skilled manufacturing – typically stitching garments or assembling components into electronic goods. This output is then exported to the developed world to capture the benefits of producing at scale. Cheap labour helps compensate for a country’s other deficiencies, such as excessive bureaucracy, unreliable power (especially electricity), or poor roads. As firms profit from exports, they invest in equipment to make workers more productive. As those workers are paid more, they can afford better schooling and health care for themselves and their children. Tax revenues also grow, providing the resources to upgrade the country’s infrastructure. The result is a virtuous cycle, because higher-skilled workers and better infrastructure enable firms to make more sophisticated, higher-value-added products. That is how China has moved from assembling components to producing world-leading electric vehicles in just four decades. Unfortunately, the same strategy is unlikely to work for India today. It is no accident that India failed to join China in shifting its economy to export-oriented manufacturing, even though the two countries were similarly poor in the late 1970s, when China started on that road. Even low-skilled factory employment requires a minimum level of education and skills. At the time, many Chinese workers met this standard, whereas most Indian workers did not. So, foreign employers found China and its cheap but capable workers more attractive. Moreover, China’s factory workers acquired skills on the job, and their education allowed them to pick up the basic accounting needed to launch their own small enterprises making products like screws and door handles. This explosion of smaller firms contributed immensely to Chinese growth. China had other advantages, too. Despite the outward perception of centralized rule by the Communist Party of China, provincial and municipal bosses have wielded a great deal of power. Mayors, hoping to be promoted for generating growth, helped local firms navigate the country’s otherwise-stifling regulations, overriding a rule here and overlooking one there in the name of getting results. By contrast, Indian bureaucracy in the same period was neither decentralized nor incentivized to promote growth, so it instead became an additional burden on Indian business. Finally, autocratic China could always favour manufacturing in ways that democratic India could not. For example, the Chinese government appropriated land for commercial purposes where necessary; pressured unions to limit wage demands even as labor productivity grew; paid depositors in state-owned banks minimal returns so that the funds could be lent out cheaply to firms; and kept the exchange rate undervalued to maintain local firms’ international competitiveness. In India, attempts to do any of the above would have met fierce democratic resistance. Nonetheless, the current Indian government wants to get on board the manufacturing bus. With many others looking to diversify away from producing in China, Indian economic policymakers see an opportunity to make up for lost time. Moreover, Indian infrastructure has improved markedly. The country now boasts many world-class airports and ports, increased renewables capacity to bridge power deficits, and an excellent highway system. But other impediments remain. Over the decade that the Modi administration has been in office, India’s garment exports have grown by less than 5%, while Bangladeshi and Vietnamese garment exports have grown by over 70%, such that their exports are now multiples of India’s. Recognising these continuing impediments, the Indian government has begun offering subsidies to incentivizse production in India, as well as raising tariffs on imports (like cell phones) to enhance these manufacturers’ profits from selling into the now-protected large Indian market. While it is still early days, one should be skeptical of this strategy. Production-linked subsidies might induce manufacturers to assemble in India, but those firms still will need to import most components. Moreover, margins will be small, because Indian workers now compete with modestly paid Bangladeshi and Vietnamese workers, not with well-paid workers in industrialised countries, as in the past. With little profit for firms to reinvest, and with less tax revenue, net of the subsidy, the virtuous circles needed to move India up the value chain will be much harder to achieve. Worse, even if the Indian government were to scale up manufacturing, the world is not ready for another China-size exporting powerhouse. Given the widespread shift toward manufacturing protectionism and growing concerns about environmental sustainability, the government’s emphasis on Chinese-style manufacturing-led development seems incompatible with where the world is headed. There is another way. To drive growth, India could focus on the export of services provided by its well-educated and skilled population. Though this cohort represents a small fraction of the total population, it still numbers in the tens of millions. Such a strategy would build on India’s strengths. The country is already well known for its role in the global software industry, and now it exports many other services, too, accounting for over 5% of the world’s services exports while its goods exports account for less than 2%.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100548_e66e90e780530fb61ba64b94b710c325f0c272e10736fca0d0b3724219edba68.jpg" data-media-id="editor_0" data-image-id="20240522100548_e66e90e780530fb61ba64b94b710c325f0c272e10736fca0d0b3724219edba68" data-rendition-name="original" width="2480" height="1529" loading="lazy" alt="Indian elections Modi rally in Bihar"><figcaption>Photo: BIKAS RAUNIAR(Photo: Bikas_Rauniar)(c)BR</figcaption></figure>  Multinational firms from Goldman Sachs to Rolls-Royce are hiring talented Indian graduates into India-based global capability centres (GCCs), where engineers, architects, consultants, and lawyers create designs, contracts, and content (and software) that are embedded in manufactured goods and services sold globally. These centres already account for over 50% of all GCCs globally, employing 1.66 million Indians and generating $46 billion in annual revenues as of March 2023. Following the pandemic-induced changes in work habits, and given improvements in communications technology, Indians also have started providing a much wider range of remote services, including consulting, telemedicine, and even yoga instruction. Once a service goes virtual, it matters little whether the provider is ten miles or 10,000 miles away. An Indian consultant in Hyderabad can now make a presentation to a client in Seattle on behalf of a team whose members span almost every continent. She not only is well trained and fluent in English, she also costs one-fourth of her US counterpart. True, Indian manufacturing has also benefited from these changes, but this has happened in precisely those areas where engineering, innovation, and design matter more than just the manufacturing process itself. Hence, Agnikul, a Chennai-based firm working to launch small satellites into space, has dispensed entirely with manufacturing supply chains by 3D printing its customised rockets in its own facility. Tilfi, which sells authentic hand-woven Banarasi silk sarees globally through its website, employs trained designers to create fresh fashions for traditional craftsmen, who in turn are encouraged to embrace innovation. It would seem to be a no-brainer that India should build on its strength: millions of high-skilled, creative, educated workers, many of whom speak English. Unfortunately, it’s running out of such workers. While India graduates 1.5 million engineers per year, only a minority attend institutions that impart the high-quality education that is in demand at a GCC or a company like Agnikul. Wheebox, a work-skill assessment company, estimates that half of all graduates are unemployable. Some of these graduates need only a little remedial education to be brought up to speed. But for many Indians, the educational deficiencies run much deeper. While nearly all Indian children start school, fewer than one-quarter can read at a second-grade level by the time they reach third grade. The further behind the stragglers fall, the less sense it makes to stay in school. Many ultimately drop out, incapable of anything but unskilled work. No wonder the share of workers in agriculture is growing in India today, contrary to the usual path for fast-growing countries. India faces a crisis of joblessness today. So, apart from expanding the creative high-skilled sector, India must create jobs that are broadly targeted at the skills people have. It also needs to improve education and skills, both in the short term and over the long term, so that Indian workers can do the jobs of the future. Sensible reforms would recognize that the solutions to both challenges are related. For example, a study shows that if a government-run daycare employs a part-time worker – perhaps a high-school-educated mother – children’s learning improves significantly. With more than one million such daycares in India today, that is potentially one million more workers set on the road to longer-term employability. Similarly, public funding for vocational and apprenticeship programs that allow students to cross the threshold of employability could convert millions into productive workers. There is no shortage of demand for health-care providers, plumbers, carpenters, and electricians. One can find these kinds of proposals in opposition party manifestos. When coupled with reforms to support businesses – especially small- and medium-size firms in labor-intensive sectors like garments, hospitality, and tourism – India could put many more people to work. But this will require carefully designed programs, funded in part by reallocating the tens of billions of dollars now being promised as subsidies to large manufacturers. In the longer run, there is no alternative to increasing the number and quality of childcare, education, and health-care institutions to capitalize on India’s greatest asset: its people. The currently low level of public spending in these areas should be seen as an opportunity, because it means that there is plenty of room to grow. India also can draw on its vast diaspora to seed some of the new higher education and research institutions it must create to expand the numbers of the highly skilled. When people have the right skills, and engage with idea-producing institutions, entrepreneurship will create jobs in the most unlikely of places. It wasn’t the government, after all, that created India’s software industry. Could growing protectionism impede this path? Not necessarily, because high-end services exports are hard to stop at the border if delivered virtually. Moreover, industrialized countries also sell such services globally (think of US management consultants and venture capitalists), which may mean that protectionism in these sectors will be less attractive. And, given their aging populations, industrialized countries have much to gain from India-provided services like telemedicine, since these will reduce the need to attract and assimilate foreign doctors and nurses. Finally, it is in the rest of the world’s interest if India eschews the Chinese path. If India grows richer faster, it will be able to buy much more from others, and if it grows primarily by producing high-value-added services, this will mitigate the impact on the climate. There is indeed a way for India to grow rich before it grows old. But it will not be easy, and it will require a change in vision at the top. That, ultimately, is what the ongoing election is about. © Project Syndicate Raghuram G Rajan, a former governor of the Reserve Bank of India and chief economist of the International Monetary Fund, is Professor of Finance at the University of Chicago Booth School of Business and the co-author (with Rohit Lamba) of Breaking the Mold: India’s Untraveled Path to Prosperity (Princeton University Press, May 2024).

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India’s election and its economic future

It is still election time in India. The <a href="https://nepalitimes.com/editorial/new-year-same-difference">polls in the world’s largest democracy</a> started on 9 April and will end on 1 June, and is in full swing across the Nepal border.&nbsp; Prime Minister Narendra Modi’s BJP is <a href="https://nepalitimes.com/opinion/southerly-winds">campaigning on a fail-safe Hindutva-agenda</a> in India’s northern heartland. Despite the BJP being weaker in the south, Modi is looking to continue his premiership for the third consecutive year but perhaps with a smaller margin.&nbsp; On Tuesday, Modi was scheduled to address an election rally in Motihari in East Champaran district of Bihar just across the Nepal-India border. Even as the fifth phase of voting came to an end on 20 May this week, a noisy election rally supporting Modi was going on full blast.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100548_ef8e1967ca5cc560e9492daf4daa3e1aaf59c52dcac962fb8efabd22904324dc.jpg" data-media-id="editor_2" data-image-id="20240522100548_ef8e1967ca5cc560e9492daf4daa3e1aaf59c52dcac962fb8efabd22904324dc" data-rendition-name="original" width="2480" height="1588" loading="lazy" alt="Indian elections Modi rally in Bihar"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100548_1c0e269781bb05cdfb8f1e9ab28cf5f7647615ff6041a176686b2401eb142534.jpg" data-media-id="editor_3" data-image-id="20240522100548_1c0e269781bb05cdfb8f1e9ab28cf5f7647615ff6041a176686b2401eb142534" data-rendition-name="original" width="2480" height="1491" loading="lazy" alt="Indian elections Modi rally in Bihar"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100548_3a42817101f50b7d7cd5e65820a578169c05dc0ac71df9356564eed8ae1fcc93.jpg" data-media-id="editor_4" data-image-id="20240522100548_3a42817101f50b7d7cd5e65820a578169c05dc0ac71df9356564eed8ae1fcc93" data-rendition-name="original" width="2480" height="1708" loading="lazy" alt="Indian elections Modi rally in Bihar"> </figure>  &nbsp;I reached an hour ahead of Modi’s arrival via helicopter in Motihari, but was not allowed at the premises inside Gandhi Maidan without a special press pass issued by the PMO in New Delhi. Nepali press credentials were not sufficient.&nbsp; Chants from die-hard BJP supporters of “Jai Shree Ram” rang in the air, and it all sounded like a personality cult. Larger than life portraits of Modi are everywhere. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100548_e66e90e780530fb61ba64b94b710c325f0c272e10736fca0d0b3724219edba68.jpg" data-media-id="editor_5" data-image-id="20240522100548_e66e90e780530fb61ba64b94b710c325f0c272e10736fca0d0b3724219edba68" data-rendition-name="original" width="2480" height="1529" loading="lazy" alt="Indian elections Modi rally in Bihar"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100548_ea4e77a83fa86b5e75bf0d0e6bc529e24246971815284d376156df129a067ffc.jpg" data-media-id="editor_6" data-image-id="20240522100548_ea4e77a83fa86b5e75bf0d0e6bc529e24246971815284d376156df129a067ffc" data-rendition-name="original" width="2480" height="1526" loading="lazy" alt="Indian elections Modi rally in Bihar"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100552_d8a05a8556eccef97206adfa6ba21b9b17cd4634101c4292779d803cacf0e316.jpg" data-media-id="editor_7" data-image-id="20240522100552_d8a05a8556eccef97206adfa6ba21b9b17cd4634101c4292779d803cacf0e316" data-rendition-name="original" width="2480" height="1635" loading="lazy" alt="Indian elections Modi rally in Bihar"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100552_f12cfde789e7b7dedd2a8717b64f132a19fc817da108c308d29ffdda14a39623.jpg" data-media-id="editor_8" data-image-id="20240522100552_f12cfde789e7b7dedd2a8717b64f132a19fc817da108c308d29ffdda14a39623" data-rendition-name="original" width="2480" height="1463" loading="lazy" alt="Indian elections Modi rally in Bihar"> </figure>  &nbsp;The attendees were also shouting “Abaki Baar 500 Par” (BJP will get over 500 seats in Parliament). Some were even shouting “600 Par” (over 600 seats) which is funny because there are only 543 seats in India’s Lok Sabha. So far, Modi’s BJP has surpassed the 300 seat mark as per the Indian media.&nbsp; Female participants of the rally had nowhere but to go behind tin sheds and bushes to relieve themselves. This is ironic given that when Modi came in power in 2014, his election campaigns prioritised building ‘Suchalaya’ (public toilets) before ‘Dewalaya’ (temples).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100548_c1501c5d9eb63cb708f0a52059fcc701c5246b2b50a75fc2057de2ab77715ca1.jpg" data-media-id="editor_9" data-image-id="20240522100548_c1501c5d9eb63cb708f0a52059fcc701c5246b2b50a75fc2057de2ab77715ca1" data-rendition-name="original" width="2480" height="1890" loading="lazy" alt="Indian elections Modi rally in Bihar"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100548_c6b4253d3be988b07358196754ddc871dceed1f3289d242834dbfce22fd615f0.jpg" data-media-id="editor_10" data-image-id="20240522100548_c6b4253d3be988b07358196754ddc871dceed1f3289d242834dbfce22fd615f0" data-rendition-name="original" width="2480" height="1683" loading="lazy" alt="Indian elections Modi rally in Bihar"> </figure>  &nbsp;A decade later, Modi’s journey has come to a full circle: he is building temples to garner votes from <a href="https://nepalitimes.com/here-now/india-s-faith-in-politics">Hindu-majority states</a>.

Modi fever in Motihari

Nepal and India are both Hindu-majority countries, but there is a difference between the Hindutva nationalism playing out in India’s ongoing elections and the Hindu faith as practiced in Nepal.
Most Nepalis are too busy trying to get by in hard economic times to be too engrossed with elections across the border. Some do harbour strong views about Narendra Modi’s brand of Hindu revivalism, and the RPP in particular seems to want to imitate the BJP’s ability to set a national Hindutva narrative.
Still, a majority of Nepalis look at Narendra Modi with something between indifference and fondness. The Indian Prime Minister has visited Nepal five times since he was first elected in 2014, and many here still remember his address to Parliament which he began in Nepali during his first state visit to Kathmandu.
There is a section in Nepal that supports a non-secular Hindu state, and Nepalis have noticed that every time Modi comes to Nepal he makes it a point to visit Hindu and Buddhist sacred sites. But in contrast to his BJP’s Hindu exclusionist policies in India, Nepal has traditionally enjoyed a syncretic blend of Hindu and Buddhist traditions.
Read also: <a href="https://nepalitimes.com/opinion/borderlines/the-south-wind-blows">The south wind blows</a>, Chandra Kishore
For most Nepalis, therefore, the affinity for BJP and Modi could be characterised as cultural rather than political. Most Nepalis still have memories of the hardships they suffered during the 6-month blockade that New Delhi imposed just after the 2015 earthquake because it did not like the contours of Nepal’s new draft Constitution.
The poor showing of the Hindu-monarchist Rastriya Prajatantra Party (RPP) in last month’s by-elections in Ilam and Bajhang shows that at least in the mountains, Nepalis are not so impressed with the polarised electoral politics on display in India. Interestingly, Bajhang is close to the Indian state of Uttarakhand which has declared itself to be a Hindu-only ‘Devbhumi’ and with which it has close cross-border cultural ties.
Although factions of the other four main parties in Parliament, the NC, UML, Maoist-Centre and the RSP, do flirt with the Hindu-monarchy line from time to time, there is not much public support for it yet and none of the four largest parties in Parliament has officially voiced its support for such an agenda.
When (and if) Modi does win a third term in India’s elections there could inevitably be ripple effects in Nepal — especially if the BJP’s mentors in the Rastriya Swayamsevak Sangh (RSS) adopt an even more radical agenda, abolish secularism from the Indian Constitution, or push the Greater India idea of ‘Akhanda Bharat’.
Read also: <a href="https://nepalitimes.com/here-now/india-s-faith-in-politics">India’s faith in politics</a>, Shrijan Pandey
Even so, rousing radical religious passions will not be as easy in Nepal, which is South Asia’s oldest nation-state and does not carry with it the historical baggage of Partition. Nepal’s Muslim minority which forms 5% of the population has for the most part lived in harmony with Hindus and Buddhists, although there are politically-instigated local flare-ups from time to time mainly along the southern border.&nbsp;
Though Nepal’s Hindu population is more than 80% (2021 census), Nepal as a whole is a country of minorities. The Hill-Brahmin and Chhetri may dominate the political and economic spheres, but they form less than 30% of the population. Nepal’s ethnic and indigenous groups have been asserting themselves, as seen in the recent Ilam by-election, where the UML’s Suhang Nembang comfortably beat the NC’s Dambar Bahadur Khadka by close to 6,000 votes. However, an independent candidate, Dakendra Singh Limbu, with no political affiliation, but who campaigned on a platform of assertive Limbu identity, made a strong showing, finishing third with 11,457 votes.
Such identity politics is more a response to ethnic exclusion and a demand for regional autonomy than pushing a religious agenda. Indeed, Nepal’s political parties have so far desisted from mixing religion with politics, even though some individual leaders in the parties sometimes seem to appear to be sorely tempted.
Nepal’s next general election is more than three years away, and India-style Hindutva politics could still be whipped up. For now, it seems more likely that it will be Nepali nationalism that will be a more potent vote-mobiliser.
This already seems to be happening, with the government minting Nepal’s new 100-rupee note that depicts the country’s ‘pointy map’ (‘chuchhe naxa’) showing a 350-sq km strip of territory in its northwestern tip which is also claimed by India.
Read also: <a href="https://nepalitimes.com/opinion/borderlines/crimson-saffron-and-green">Crimson, saffron and green</a>, Chandra Kishore
Akhilesh Upadhyay is former Editor-in-Chief of The Kathmandu Post and a Senior Fellow at the think tank, IIDS.

Southerly winds

While Nepal’s calendar enters the eighties on Saturday 13 April, this is a good time to pause and think about what might lie ahead for Nepal and the world in Gregorian year 2081.
The world is too late to limit the global average temperature to 1.5°C. By 2081, ocean expansion and heat stress will lead to mass migration to higher latitudes and altitudes. Multi-disasters, conflicts and food shortages will stalk the planet.
At the present rate of birth rate declines, China’s population will have shrunk to 850 million. By 2081, there will only be half as many Koreans as there are today. Nepal’s population pyramid will have inverted by then, and total inhabitants will decline to 22 million.
The outmigration of Nepalis from the mountains to the plains will likely start reversing in the next few decades. The Gulf states will be too hot to work in. Half the remaining Himalayan glaciers will have melted off, reducing the dry season flow of our rivers.&nbsp;
These are changes we know are coming, so we might as well prepare for them. Alas, the world is still in business as usual mode. Most politicians do not recognise the urgency of the crisis, and are haggling over who gets to sit in the best chair on the tilting deck of the Titanic.
Read also: <a href="https://nepalitimes.com/editorial/year-of-reckoning">Year of reckoning</a>, Editorial
India, China, US
Meanwhile, 2081 BS will see elections in the two biggest democracies, India and the United States, that will have a bearing on the region and the world. Proximity means Nepal will be impacted more immediately by the outcome in India, where a third term as Prime Minister for Narendra Modi seems to be a foregone conclusion in marathon elections from 19 April to 1 June.
Nepal is already feeling the spillover of India’s election fever as shown by Hindu-Muslim riots in Sunsari last week, and the anti-secular pro-monarchist rally in Kathmandu on Tuesday.&nbsp;
Under the Hindu-supremacist BJP since 2014, India has slid into dangerous authoritarianism, intolerance and systematic persecution of minorities. There is now not even a modicum of decency as opposition leaders are thrown into jail on trumped up charges, and their vilification amplified by a pliant mass media.
The West looks away as the BJP tightens control and squelches the media and democratic values, since India’s 8% growth is important for trade. New Delhi is even excused for breaking sanctions against Russia. India’s economic engine will pull Nepal along, but its politics could tear the intricate ethnic fabric of our society.&nbsp;
Over on the other side of the planet, Joe Biden and Donald Trump are readying for a second face-off. Much like in Nepal, US politics also seems to be populated by tired old men reluctant to let go.
Read also: <a href="https://nepalitimes.com/editorial/the-f-word-9yauh6kl">The F word</a>, Editorial
Much like how photographs from Vietnam swayed domestic public opinion against the war, the daily bombardment of images of children maimed and killed in Gaza has turned US public opinion against Biden. His administration parachutes food into Gaza, while shipping more bombs to Israel.
The war may prolong Benjamin Netanyahu’s hold on power in Israel, but it may cost Biden a second presidential term. Trump will be no better on Palestinian independence, and his threat to pull out of NATO is already ringing alarm bells in Europe.&nbsp;
Trump is campaigning on an anti-immigrant platform, and exaggerating the threat on the Mexican border. He wants immigrants only from ‘nice’ countries, and not from ‘shitholes’ like Nepal.
America’s domestic polarisation, Trump’s rejection of multilateralism, Biden’s unpopularity on the world stage because of Gaza, and panic in Europe over losing the American security umbrella to confront Putin’s Russia has geopolitically weakened the West. This means that for Nepal, the looming presence of next door India and China will be felt even more than before.
It was the West that traditionally pushed for human rights, transitional justice, democracy and the free press in Nepal. Now, we have to contend with two giant neighbours who do not believe in those concepts, and have in fact undermined them within their own societies.&nbsp;
Read also: <a href="https://nepalitimes.com/editorial/at-home-and-abroad">At home and abroad</a>, Editorial
Here and now
Back in Nepal, the government has selected more than 400 Nepalis to work in Israel as caregivers. Nepalis continue to enlist in the Russian Army even as the Labour Ministry prepares to lift the ban on work permits in Russia.
The new UML-Maoist-led coalition has reaffirmed the transient nature of Nepali politics. Political allies become rivals overnight, and the RSP on whom many Nepalis had pinned their hopes is behaving like the mainstream parties it once vowed to hold to account.&nbsp;
Public disillusionment with Nepal’s party politics has emboldened populist and nationalist forces that are set on dismantling the 2015 secular, federal republic constitution.
Such political disarray will not help us in Nepal face the challenges wrought by the climate crisis in the decades ahead.
Read also: <a href="https://nepalitimes.com/editorial/nepal-s-corruption-carousel">Nepal’s corruption carousel</a>, Editorial

New year, same difference

This is the first instalment in a new limited series in Nepali Times on the historic transportation infrastructures of Nepal. Nepal’s Forest Railways As<a href="https://nepalitimes.com/here-now/india-s-border-trains-that-connected-nepal"> India’s railway network </a>expanded in the 1890s and 1900s, the demand for wooden railway sleepers, called ‘ties’ in America, likewise increased. The <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/the-rana-reign-a-recap-of-history,3751">Rana regime</a> realised that western Nepal’s dense forests, from which sal trees could be extracted and sold, represented a valuable source of revenue. There was a problem of accessing large tracts of <a href="https://nepalitimes.com/here-now/the-tarai-s-shrinking-forests">Tarai forests</a>. However, once Indian railway lines are extended to Nepal’s border in several places, this issue could be resolved by constructing logging railways, also known as ‘tramways’ or ‘light railways’. The Nepal Government awarded a contract to Punjabi timber contractors to supply 15,000 sal sleepers to Chandan Chauki station of India’s Oudh &amp; Rohilkhand State Railway in 1908. The contractors also received a concession to construct a steam tramway to run 48km into <a href="https://nepalitimes.com/banner/reviving-nepals-community-forestry-success-story">Nepal’s forests</a> for cutting and transporting trees. The author found no records, however, indicating that such an ambitious tramway was built in 1908. The hewn logs were probably carried into India by bullock carts or <a href="https://nepalitimes.com/news/elephants-become-white-elephants">elephants</a>. The earliest known forest railway in Nepal was built in 1914 in the southwestern corner of the present-day Parsa district. A British engineer went to the Indian border town of Bikna Thori to plan a 4-mile portable light railway for the transport of timber from <a href="https://nepalitimes.com/here-now/on-the-tri-junction-of-wildlife-conservation-conflict-and-co-existence">the forest of Chitwan </a>to the Thori depot on the Bengal &amp; Northwestern Railway. This short line was laid upon wooden sleepers, and its rails could be taken up and repositioned when logging in one section of the forest was completed. This forest railway was in operation at least through 1917.&nbsp; A few year down the line in 1923, J V Collier of the Indian Forest Service built a narrow-gauge railway in Kailali district also to export of timber to India. This line, the Nepal Government Forest Railway, departed Chandan Chauki in Uttar Pradesh and ran 48km northwest into Nepal.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150820_84ddef57433c2f847b2c7e56c2d9c924084b6e6a504bbca905d2c593fac8eabd.jpg" data-media-id="editor_6" data-image-id="20250824150820_84ddef57433c2f847b2c7e56c2d9c924084b6e6a504bbca905d2c593fac8eabd" data-rendition-name="original" width="1130" height="689" loading="lazy" alt="Nepal's little railways"> <figcaption>A Nepal Government Forest train in Kailali District hauling sal sleepers in 1925. Photo: DAVID CHURCHILL </figcaption> </figure>  It was a 2-foot railway supported by 11kg rails. The line was ‘temporary’ in that as sal trees were thinned out in one area, railway tracks were shifted to uncut areas of the forest. The railway crossed seven small <a href="https://nepalitimes.com/here-now/saving-what-is-left-of-himalayan-rivers">rivers</a>, but the bridges were taken down during the summer and monsoon. Trains ran only from November to April. This forest railway purchased four 4-6-0T ‘tank’ engines built in Leeds, England. Each bogie could carry 100 broad-gauge sleepers, and two engines were needed to haul a 21-car train loaded with 2,100 sleepers. This huge commercial forest operation once employed about 14,000 men, most of them Indians. During one season, nearly 800,000 broad and metre-gauge sleepers were exported to India. When India suffered a depression in 1930, large scale operations came to an end. Read also: <a href="https://nepalitimes.com/news/rust-in-peace?fbclid=IwAR1_eg88TCOS6RGRW1af7WvaWx5mzh_rY8-vT1MnJxSs41QtCpaA988oXk8">Rust in peace</a>, Daniel W Edwards  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150828_13a0b894b9ea0c478904d358028f0c976d84f284432ee25106787366598d38e5.jpg" data-media-id="editor_9" data-image-id="20250824150828_13a0b894b9ea0c478904d358028f0c976d84f284432ee25106787366598d38e5" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="Nepal's railways"> <figcaption>Rails extended north from this spot into the virgin sal forests of Bardia in western Nepal 100 years ago.  DANIEL W EDWARDS</figcaption> </figure>  A third railway was built in <a href="https://nepalitimes.com/here-now/the-big-bulls-of-bardia">Bardia </a>where some scattered rails and signs of an old roadbed were seen in the 1960s. It ran from Nishangada in India to Khairbhatti in Nepal. From there, stations heading south were Ranipur, Karmak, Taratal and Madhuwan. Collier likely <a href="https://nepalitimes.com/here-now/nepal-train-project-struggles-to-stay-on-track">built this railway </a>as well in the 1920s. An elderly man in Bardia in 2022, whose father had worked on this forest railway, was interviewed for this account. Kathmandu Valley’s Motor (Trolley) Railway Merchants importing goods from India via the<a href="https://archive.nepalitimes.com/article/business/ropeways-connecting-nepal,1749"> ropeway</a> Chandra Shamsher built in 1927 had to go to the ropeway’s terminus at Matatirtha near Thankot to claim their goods and then haul them 6km to the customs house Bhansar Adda at Teku for clearance and payment of customs duties. The Motor Railway was built to carry goods from the<a href="https://archive.nepalitimes.com/news.php?id=16839"> ropeway station </a>directly to the customs office, making it cheaper and more convenient for merchants to receive their shipments. In December 1931, Prime Minister Bhim Shamsher issued an order (sanad) putting Lt Gen Singha Shamsher Rana in charge of building this rail line to Teku and on to ‘Nabalak Khana’ in Tripureswar, a distance of 10km. The project was subdivided into four sections or ‘phant’, and for each, budgets and timelines were established. There was bato phant (constructing the roadbed), lik sleeper and jordne phant (laying sleepers and joining the rails), culvert phant (installing culverts) and pul phant (building bridges). Colonel Kishore Narsingh Rana was put in charge of the sleeper and rail section, while Colonel Dilli Jung Thapa, an engineer at Ghar Kaj Adda, also was involved. The Motor Railway was completed by the end of 1933. In the beginning, the railway’s small wagons may have been pulled and pushed by men and bullocks. However, in 1938 a British railway manufacturer sent Nepal a four-wheel, 5½ ton, 2-foot narrow-gauge diesel-powered locomotive with mechanical transmission, hence the name motor railway. Read also: <a href="https://nepalitimes.com/latest/nepal-railways-janakpur-test-drive?fb_comment_id=3554227181262227_4263866616964943">Nepal Railways Janakpur test drive</a> Leaving Matatirtha, the trains passed Satungal, Naikap, the Bishnudevi Temple, crossed an iron bridge over Balkhu Khola, then to Ghattepakha, Sunagau, through what is now a section of Kuleshwor (‘Lik Marg’) to the Customs Office at Teku.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825020852_033f0cee9775d7dadde7811132f84da876f614c386e3677e560ba7aed79909d9.jpg" data-media-id="editor_15" data-image-id="20250825020852_033f0cee9775d7dadde7811132f84da876f614c386e3677e560ba7aed79909d9" data-rendition-name="original" width="2000" height="1333" loading="lazy" alt="railways in Nepal"> <figcaption>Lik Marg in Kuleswor, the former route of the Motor Trolley Railway. Photo: DANIEL W EDWARDS</figcaption> </figure>  In 1945, Motor Trolley had four engines, but spare parts was badly needed. The charge for transporting one maund (about 40kg) of cargo from Matatirtha to Teku was 50 paisa. Even though the trains ran slowly and only for a short distance, <a href="https://nepalitimes.com/news/fatalism-and-fatalities">accidents were not unknown</a>. A train loaded with rice, salt and cotton derailed on a curve in July 1946, and two railway employees were crushed under the cars and killed, five others were injured. Besides the driver and a brakeman, guards rode the trains to prevent theft of goods.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150836_63a327d4db3b067a23dd5c6cf17a31ffe811ffd4a8429bc31011d62298a90060.jpg" data-media-id="editor_17" data-image-id="20250824150836_63a327d4db3b067a23dd5c6cf17a31ffe811ffd4a8429bc31011d62298a90060" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="Nepal's railways"> <figcaption>The author by the remains of the Balkhu Khola bridge built in 1932 with American steel. Photo: JEEVAN NEPAL</figcaption> </figure>  By 1953, government budget estimates indicated the Motor Railway would break even with an income of Rs70,000 against Rs71,000 in expenditure. It appears the railway stopped service around 1957 with the opening of the Raj Path and the extension of the ropeway from Matatirtha to Bhansar Adda. Bent steel beams of the bridge across Balkhu Khola and two plaques recovered from the river a few years ago are the only remains of this railway today. Photos of the Motor Trolley Railway in operation are hard to come by.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825020848_3a7cd17d0ffc36bbf5fdad404f5f6e91c7aa0e4f4ed729ed2c7e9c186f32ca9b.jpg" data-media-id="editor_18" data-image-id="20250825020848_3a7cd17d0ffc36bbf5fdad404f5f6e91c7aa0e4f4ed729ed2c7e9c186f32ca9b" data-rendition-name="original" width="5189" height="1979" loading="lazy" alt="railways in Nepal"> <figcaption>Steel plaque commemorating the construction of a Motor Trolley bridge across the Balkhu Khola. Photo: DANIEL W EDWARDS</figcaption> </figure>  The Kosi Project Railway (KPR) As early as 1941, India and Nepal considered building a dam on<a href="https://nepalitimes.com/here-now/the-kosi-s-sorrow-and-scope"> the Kosi River</a> to prevent destructive floods caused by <a href="https://nepalitimes.com/editorial/when-it-rains-it-pours-ksqprbu3">monsoon rains</a>. Floods in 1950 inundated 500 villages in Bihar and left 500,000 people homeless. The two governments signed an agreement in 1954 to build a barrage on the Kosi, and King Mahendra and Prime Minister Nehru laid the foundation stone in April 1959. To transport stones from a quarry near Dharan to use in mixing concrete at the construction site, the Indian government, in charge of building the barrage, made plans to build a narrow-gauge railway linking Bihar and its border town of Bhimnagar with Nepal’s settlements at Chakraghatti, Chatra and Ghopa, the outskirts of Dharan.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150816_fc5e13b01022c63c64f1e83589da0015eee7ecd002bdd3d97b88c98c1f3d45b7.jpg" data-media-id="editor_21" data-image-id="20250824150816_fc5e13b01022c63c64f1e83589da0015eee7ecd002bdd3d97b88c98c1f3d45b7" data-rendition-name="original" width="4011" height="2645" loading="lazy" alt="Nepal's railways"> <figcaption>Steel plaque commemorating the construction of a Motor Trolley bridge across the Balkhu Khola. Photo: DANIEL W EDWARDS</figcaption> </figure>  The section of the KPR in Nepal totaled 66km — the country’s longest railway to date. The stations south of Chakraghatti were Rajabas, Maduhuwan, Kushaha, Haripur and Bhantabari. The line built, operated and owned by the Indian Government, was opened in 1958 and known locally as Dhunge (stone) Rail. Procuring locomotives, wagons and other materials was a challenge. India’s Railway Board searched the country for old 41 lb rails, and located steam engines, most built around 1910, in poor condition, and stored in ‘retirement’. These decrepit locomotives were later cannibalised for parts to keep the remaining engines running, and six newer locomotives built in Yugoslavia were sent to the KPR in 1960 to prevent the railway from shutting down and halting construction of the barrage.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150832_fd644f9e2674c5047a531de5dfeb2c8860b0f93dddc7a2df3db867bf31b2c94b.bmp" data-media-id="editor_22" data-image-id="20250824150832_fd644f9e2674c5047a531de5dfeb2c8860b0f93dddc7a2df3db867bf31b2c94b" data-rendition-name="original" width="3171" height="2069" loading="lazy" alt="Nepal's railways"> <figcaption>KPR locomotives, water tank and staff at Chakraghatti in Nepal. Photo: JOHN BENSON</figcaption> </figure>  Used bogie-wagons (gondolas) came from <a href="https://nepalitimes.com/here-now/india-nepal-rail-diplomacy">Indian railways</a> that had been converted to metre-gauge, others were manufactured in Muzaffarpur without couplers due to the non-availability of steel. A hundred new wagons arrived from Japan, but only half could be put in service, as couplers from the other 50 were removed and attached to the Muzaffarpur wagons. This smorgasbord of equipment kept shop mechanics and work crews busy, but now-abandoned railways in Nepal always operated under less-than-ideal conditions. Although the purpose of the KPR was to transport gravel, stones and boulders to the site of the barrage, photographs show people riding in loaded wagons. Excluding Dharan, there was no bus service through the wild animal infested jungle between Dharan and Chakraghatti or along the dusty paths linking other small villages on the KPR, so patient locals sat in wagons at Dharan, waiting perhaps for hours for trains to depart.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825020852_7d011dcc8e9b8cb0fe745b352486ebc4a84dac99419eadb35875333db20837c6.jpg" data-media-id="editor_24" data-image-id="20250825020852_7d011dcc8e9b8cb0fe745b352486ebc4a84dac99419eadb35875333db20837c6" data-rendition-name="original" width="3965" height="2659" loading="lazy" alt="railways in Nepal"> <figcaption>Ticketless riders on a train of gravel and stones in the forest between Dharan and Chakragatti in 1966. Photo: JOHN BENSON</figcaption> </figure>  Sons of former railway workers in Chakraghatti say that there were no fixed schedules, three or four trains ran both ways daily in the early 1960s. Southbound trains carried gravel, stones and boulders, while northbound trains would carry coal, cement and provisions, including sacks of coins to pay the workers. Trains even ran at night, and the crews worked long hours. Workers received free housing in project-built tenements but had to buy food supplies and items for personal use. The Babu Saheb or the superintendent lived at Chakraghatti, and at one time supervised more than 1,000 employees, nearly all of them from India. The barrage was completed in 1964, but by 1970, the Kosi Project Railway had passed into history. Daniel W Edwards was a Peace Corps volunteer in 1966 and is the author of several books on Nepal.

Nepal’s five little railways

The cost of preserving Nepal’s past

Turkish Airlines is official airline partner for the second edition of the Vatsalya Everest Women’s Volleyball League (EWV). The league, scheduled for 5-13 September, will take place in Pokhara and feature 18 international players alongside elite Nepali volleyball talent. The agreement was signed by Turkish General Manager Serkan Başar, and EWV CEO Snevy Chapagain. “Turkish Airlines’ support ensures a seamless journey and adds immense prestige to the league’s goal of women’s empowerment through sports as well as the agenda of sports tourism,” said Chapagain. “We are thrilled to partner with Vatsalya Everest Women’s Volleyball League as the official airline. With this association, we aim to support women role models in sports. We believe this association will connect countries to Nepali volleyball,” remarked Basar.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825030844_36df66612152abbea71f15579358a2bb0fe797f21cbe7e7c7f28e3fe91655ae4.jpg" data-media-id="editor_0" data-image-id="20250825030844_36df66612152abbea71f15579358a2bb0fe797f21cbe7e7c7f28e3fe91655ae4" data-rendition-name="original" width="1920" height="1280" loading="lazy" alt="Turkish"> </figure>

Turkish to sponsor women’s volleyball league

India and China have a long-standing border dispute along their Himalayan border which has erupted in violent skirmishes. But Indian and Chinese officials last week agreed to ignore Nepal’s own border dispute with India to facilitate trade. The Indian Ministry of External Affairs this week flatly rubbished <a href="https://nepalitimes.com/editorial/territorialism">Nepal’s territorial claims</a> to the Lipulek Pass and the Kalapani Region, including Limpiyadhura, which Nepal considers as the source of the Mahakali River that forms Nepal’s western border with India. The latest episode in this dispute has come as Sino-Indian relations have thawed after US President Donald Trump slapped <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">sanctions on Indian exports</a>. The joint communiqué in Beijing said India and China had agreed to resume their border trade through the Nathu La, Sipki La and Lipulek during Chinese foreign minister Wang Yi’s visit to New Delhi. Lipulek is a pass 10 km north-east of <a href="https://nepalitimes.com/news/there-is-precedent-to-settling-kalapani">Kalapani</a> which has been disputed ever since the Survey of India published its 1879 map, where the source of the Mahakali was suddenly shifted from Limpiyadhura to Lipulek.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250826060824_4e68dd5964e0995b91148de9978a1de52b19691e1b01f52a405924fd130c22bd.jpg" data-media-id="editor_3" data-image-id="20250826060824_4e68dd5964e0995b91148de9978a1de52b19691e1b01f52a405924fd130c22bd" data-rendition-name="original" width="2000" height="2083" loading="lazy" alt="Lipulek dispute explainer"> </figure>  This tributary of the Mahakali was called the Kali on this map, and is a fordable tributary and not the main channel of the border river. The main Kali River was renamed Kuti Yangdi, and this happened while the British were still in India presumably to gain access to the Lipulek in contravention of the 1816 <a href="https://nepalitimes.com/banner/borderline-disorder">Sugauli Treaty</a>.&nbsp; This subterfuge continued even after India gained independence in 1947. Nepal has maintained that the main channel of the Kali is the border as per the 1816 treaty, when Nepal lost a third of its territory to British India. It is all well and good that India and China are now friendly enough to <a href="https://archive.nepalitimes.com/news.php?id=19447">open border trade</a> routes, but it should not be in violation of Nepal’s territorial integrity. Nepal should be called for diplomatic and political negotiations regarding the Lipulek pass and the Kalapani region comprising Limpiyadhura.&nbsp; Read also: <a href="https://nepalitimes.com/opinion/comment/when-xi-meets-modi-and-oli">When Xi meets Modi and Oli</a>, Kanak Mani Dixit China and India, but especially the latter, should invite Nepal to discuss these issues and iron out the disputes based on facts and evidence and maps. Nepal had sent seven diplomatic notes to India and three to China so far regarding the Lipulek and Kalapani. India has not responded to any of them. China replied once saying that Nepal and India should sort out their border disputes first before voicing their opinions. Nepal welcomes the recent talks between India and China that it hopes will positively impact on settling border disputes that are mostly stalled since the 1962 Sino-Indian war, the 73-day military standoff over the disputed Doklam region between China and Bhutan, and the 2020 Galwan clash in Ladakh. Nepal’s two large neighbours seem to have come to their senses and realised that it is in their interest to collaborate rather than confront each other when President <a href="https://nepalitimes.com/opinion/trump-s-first-month">Trump is acting erratically</a> with threats of sanctions and tariffs.&nbsp; Prime Minister K P Oli should bring up Nepal’s grave concerns about the Lipulek during his state visit to India next month when he will meet Prime Minister Narendra Modi in Bodh Gaya. The two are also expected to meet next week at the Shanghai Cooperation Organisation summit in Tianjin when Chinese President Xi Jinping will also be present. But even before that Nepal should send diplomatic notes to both the Indian and the Chinese governments regarding their agreement to resume border trade through the Lipulek.&nbsp; Here is a timeline of the developments regarding the Lipulek: Sino-Indian Agreement of 1954 This 8-year Agreement on Trade and Exchange between Tibet and India was signed in Peking on 29 April, 1954 by the Chinese Vice-Foreign Minister Chang Han Fu and the Indian Ambassador Nedyam Raghavan.&nbsp; There was no explicit mention on the border settlements either on the Line of Actual Control (LAC) or on Ladakh, although trade and pilgrimage through Lipulek and other 5 passes (Sipki La, Mana Pass, Niti Pass, Kungri Bingri Pass and Dharma Pass) were agreed upon.&nbsp; Trade between Uttar Pradesh state and the Tibet Autonomous Region was through ‘border &nbsp;point of the agreement states: ‘With a view to facilitating the visits of persons engaged in border trade and the exchange of commodities and means of transportation, (India and China) have decided that Lipulek (Qiangla) be the border pass for the entrance and exit of the said persons, commodities and means of transportation from the two sides.’ The agreement expired on 6 June 1962 during the Sino-Indian war, and the two sides did not renew it. Bilateral ties started to normalise only in the 1990s with the Indian decision in 1988 to abandon its policy of settling ‘territorial issue’ for ‘normalisation of relations’. India There was no reaction from Nepal to the 1954 agreement since Nepal did not have diplomatic relations with China yet at the time. Sino-Indian Agreement of 2005 The Political Parameters and the Guiding Principles for the Settlement of the Sino-Indian Boundary Question is detailed in 11 Articles, which outline the steps to be taken for a Peaceful and Tranquil Border. The agreement was a direct outcome of the Special Representatives mechanism that had been set up through a 2003 agreement. It also incorporated the Confidence Building Measures in Military Field along the Line of Actual Control (LAC) in the Sino-Indian Border Areas signed in 1996.&nbsp; A protocol on Modalities for the Implementation of Confidence Building Measures in the Military Field along the Line of Actual Control in the India-China Border Areas signed during Chinese Premier Wen Jiabao’s India visit, which stated in Clause 2 of Article 5: ‘Both sides agree to extend in principle to expand the mechanism of border meeting points to include Kibithu Dhamal in the Eastern Sector and Lipulek Pass (Qing La) in the Middle Sector. The precise locations of these border meeting points will be decided upon mutual consultations.’ Nepal’s Foreign Ministry issued a statement in 2005 stating that Nepal had asked China about the issue and the Chinese Embassy clarified that the agreement had nothing to do with Kalapani. This was perhaps the first time that Nepal had objected to the Sino-Indian agreement on Lipulek. King Gyanendra had staged a coup d’état on 1 February 2005, just two months prior to this agreement. The Nepali press voiced criticism of China in particular for disregarding the country’s sentiment.&nbsp; Sino-Indian Agreement of 2015 India and China signed several documents during the state visit of Chinese President XI Jinping to India on 18 September 2011. Number one on the list was: ’Opening a New Route for Indian Pilgrimage (Kailash Mansarovar Yatra) to the Tibet Autonomous Region of the People’s Republic of China’.&nbsp; The Indian foreign ministry stated: ‘The MoU provides for conducting the annual Kailash Mansarovar Yatra through Nathula Pass in Sikkim in addition to the existing Lipulek Pass in Uttarakhand’. On May 15, 2015, China and India issued a Joint Statement during Indian Prime Minister Narendra Modi’s visit to China. Point 28 under the ‘Trans-border Cooperation’, states that the two sides agreed to ‘hold negotiation on augmenting the list of trades commodities, and expand border trade at Nathu La, Quingla/Lipulek Pass and Sipki La Pass’. Nepal’s objection to the 2015 agreement was stronger than in 2005. Prime Minister Sushil Koirala called up Narendra Modi to express Nepal’s displeasure It was not until 2020 that Nepal’s Foreign Minister disclosed that ‘Nepal had expressed its disagreement in 2015 through separate diplomatic notes addressed to the governments of both India and China … including Lipulek Pass as a bilateral trade route without Nepal’s consent.’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250826060824_d4497e2620bba81211d27e427393974877e09006abc26e13055508996e5b29ea.jpg" data-media-id="editor_8" data-image-id="20250826060824_d4497e2620bba81211d27e427393974877e09006abc26e13055508996e5b29ea" data-rendition-name="original" width="1108" height="1550" loading="lazy" alt="Lipulek dispute explainer"> </figure>  The new political map of India published by the Survey of India in November 2019 that incorporated areas east of the Kali River including Kalapani as Indian territory sparked renewed public, and political, attention to the Mahakali dispute. The Nepal government then countered by formally approving the publication of the new Political and Administrative Map of Nepal including all territories lying to the east of the Mahakali River on May 18, 2020. In June, the House of Representatives unanimously endorsed the second amendment to the Constitution of Nepal to update the country’s new political map in the national emblem. Sino-Indian Consensus of 2024 A 6-point Consensus on Peace and Tranquility on the Line of Actual Control (LAC) was agreed on December 18, 2024 between the Special Representative of the People’s Republic of China, Wang Yi, and the Special Representative of the Republic of India, Ajit Doval.&nbsp; India has not denied that this is a consensus, while China made it clear that this was not a Joint Statement. This Consensus is in line with the 2005 agreement, and was agreed during the 23rd round of the Special Representatives talks held after a gap of five years aimed at restoring bilateral ties frozen because of the military standoff in Ladakh. The agreement included: cross-border communication and cooperation, promoting the resumption of pilgrimages by Indians to Xizang, cooperation on crossborder rivers, and trade at the Nathu La Pass. Nepal made no reaction to the statement despite Lipulek being the pilgrimage route for Mansarovar and Kailash.&nbsp; Prabhakar Sharma is a construction engineer and an international border expert who has worked as a survey engineer for the Cameroon-Nigeria border demarcation by the United Nations.

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