Online published on 10 October, 2016.
Despite Indian Prime Minister Narendra Modi's Neighbourhood First Policy, relations between India and Nepal have suffered recently, mostly as a result of the latter's internal political conflicts in the process of adopting a new constitution. New Delhi supports the demands of the Madhesis who have close ethnic ties with their Indian neighbours across the border. Nepal's ruling classes especially leftist politicians see this as an interference in their country's affairs and have invited China to play a greater role as a balancer to India's overwhelming infl uence. The Modi led government however must be careful in its dealings with Kathmandu if it wants to avoid lasting hostility from its small northern neighbour.