This paper reviews the evolution of India’s policies towards its smaller Himalayan neighbours Nepal and Bhutan with which it has close cultural, economic, political and religious bonds, far older than the unequal treaties British India signed with the two. While Nepal, following the transition from a Hindu absolute monarchy to a secular democratic republic and currently under a nominally Leftist leadership, tends to play the China card against India, Bhutan so far has remained a reliable ally even though it has occasionally reaffirmed its commitment to full sovereignty. New Delhi must be mindful of the sensitivities of the two strategically situated and landlocked former protectorates, which Beijing seeks to involve gradually in its foreign cooperation projects including the Belt and Road Initiative and the Regional Comprehensive Economic Partnership. India’s proposals for developmental partnerships have been no match for China’s ambitious multinational plans.
