On Saturday India and Nepal restored their passenger rail services themselves, as Kathmandu is highly wooed by China. They also finalised agreements for the supply of petroleum products.
Nepal has traditionally executed a balancing act between New Delhi and Beijing, however, analysts believe that the Indian influence in Kathmandu is dwindling with China pouring heavy investment into the landlocked Himalayan country.
The Nepalese prime minister Sher Bahadur Deuba had India his first foreign destination as he returned to power in the last year.
In this three-day visit to India, he met Prime Minister Narendra Modi on Saturday, with whom he virtually flagged off a passenger train that connects the eastern Indian state of Bihar and Nepal.
It is the first of its kind rail link between the neighboring countries after the services had been halted for upgrades in 2014. The two leaders have agreed to prioritize trade along with cross-border connectivity initiatives.
PM Narendra Modi said that these schemes would make a wonderful contribution to the easy and hassle-free exchange of commuters between the two countries. The two countries India and Nepal have also finalised agreements regarding the supply of petroleum products and have released a power sector cooperation joint vision statement.
PM Deuba’s journey south comes a few days after Wang Yi, the Chinese foreign minister, paid a visit to Nepal and India.