On January 21, the Nepal Institute for International Cooperation and Engagement (NIICE) hosted the first CAPS-NIICE Policy Dialogue 2025 titled “Emerging Regional Dynamics and Nepal-India Relations.” The seminar was structured into two sessions, bringing together scholars, policymakers, and professionals to discuss the evolving geopolitical landscape and the future of Nepal-India relations.

Session I featured Air Vice Marshal Anil Golani (Retd) from the Centre for Air Power Studies (CAPS) and Dr. Deepak Prakash Bhatt, former Member of Parliament in Nepal. The session was moderated by Dr. Pramod Jaiswal, Research Director at NIICE, and chaired by Sumitra Karki, Director at NIICE. Golani opened the session by emphasizing the longstanding historical, geographical, and cultural ties between India and Nepal. He highlighted India’s supportive role during crises, its economic and defense cooperation with Nepal, and the deep monetary linkages such as Nepal's use of the Indian rupee. He noted that while strategic autonomy for Nepal is important, there is much room for productive bilateral cooperation, particularly through infrastructure and economic initiatives. He viewed Nepal-India relations optimistically, particularly with projects like cross-border railways and expanding economic partnerships.

Dr. Bhatt analyzed the shifting nature of Nepal-India ties in light of broader regional developments. He emphasized people-to-people connections like migration and remittances, advocating for Nepal to recalibrate its foreign policy in the context of great power rivalries and initiatives like the Indo-Pacific strategy and China’s Belt and Road Initiative. He pointed to the importance of enhancing connectivity through road, rail, and air infrastructure to support trade and tourism. While acknowledging existing hurdles in energy cooperation and hydropower, he expressed hope for progress in climate action and religious tourism. Dr. Bhatt underscored the value of think tank dialogues in generating innovative, policy-relevant insights.

In the Q/A segment, Golani reaffirmed India’s principle of non-interference in Nepal’s domestic affairs, stressing that the direction of Nepal’s internal politics should be determined by its people. He encouraged Nepalese youth to actively engage in national development. Dr. Bhatt reiterated the significance of infrastructure development, particularly focusing on vehicle mobility and regional roads like the East-West Highway, advocating for frameworks such as PBIN (Pant-Biratnagar-Itahari-Nepal) to improve connectivity and trade logistics.

Session II featured Dr. Shalini Chawla, Distinguished Fellow at CAPS; Sixit Bhatta, a tech entrepreneur; Anadi, Research Associate at CAPS; and Jay Nishant from Nepal Democracy Foundation. Dr. Chawla explored the theme of regional dynamics and India-Nepal relations through the lens of India’s evolving foreign policy under Prime Minister Modi. She highlighted guiding principles like "Bharatvas First" and "Vasudev Kutumbakam," while addressing regional challenges including economic instability, security concerns, and China's expanding footprint. She emphasized India’s continued support for Nepal’s development journey, including its transition out of the least-developed country category, and reaffirmed India’s commitment under the Neighborhood First policy.

Sixit Bhatta examined how India and Nepal can cooperate in digital infrastructure. He suggested that Nepal could benefit from adopting digital systems similar to India’s Aadhaar, which promote transparency and inclusion. He envisioned the development of regional AI models tailored to local languages and proposed that Nepal use its clean energy to host data centers, making it a hub for digital and AI development in South Asia.

Anadi brought attention to non-traditional security challenges shared by both countries, especially climate change and energy security. She discussed the environmental vulnerabilities faced by Nepal and India due to their Himalayan geography and stressed the potential for renewable energy collaboration, particularly in hydropower. Anadi advocated for stronger bilateral and regional energy frameworks to address these shared challenges, contributing to long-term sustainability.

Jay Nishant introduced a new conceptual lens to understand Nepal-India ties using four dimensions: Khun (blood ties), Masina (migration and remittances), Pwani (water resources), and Pasa (economic interdependence). He encouraged moving beyond historical narratives to embrace opportunities in religious tourism, sports, destination weddings, and education. He also highlighted Nepal’s potential as a hub for health and wellness tourism and urged Indian investors to take interest, especially in light of rising Chinese foreign direct investment in Nepal.

During the interactive discussions, Dr. Chawla emphasized India’s consistent diplomatic engagement, even amid regional uncertainty, and encouraged resolving sensitive issues like border disputes with caution and sensitivity. On the Belt and Road Initiative (BRI), she suggested that it should be evaluated more for its economic implications than as a threat to security. Sixit Bhatta discussed the potential of Nepal becoming a regional data storage center through the efficient use of hydropower and modern energy storage solutions like advanced battery technologies. This, he proposed, could allow countries like India and Bangladesh to establish data centers powered by Nepalese energy.

Anadi discussed India’s National Action Plan on Climate Change, which includes targets for solar energy, water conservation, and ecosystem protection. She emphasized the potential for bilateral cooperation in climate adaptation, technology transfer, and shared knowledge platforms to address environmental risks. Jay Nishant addressed Nepal’s internal political instability, shaped by frequent government changes and competing ideologies, which undermines investor confidence. He called for strategic policy continuity to navigate Nepal’s complex geopolitical environment and enhance its economic appeal.

The seminar closed with a collective call for deeper Nepal-India collaboration that is forward-looking and inclusive. The participants agreed on the importance of practical policy approaches to resolve longstanding issues such as border disputes and trade asymmetries. It was emphasized that building a future of trust, mutual respect, and shared development requires sustained dialogue, cooperation in new sectors like technology and climate, and leveraging each nation’s unique strengths.

Air Vice Marshal Anil Golani (Retd), currently the Director General of CAPS, has a distinguished career in the Indian Air Force. A qualified flying and instrument instructor, he has flown Ajeet and Jaguar aircraft and raised the IAF’s first Harpy squadron. He has held high-level appointments, including Air Officer Commanding Maritime Air Operations, and served in joint commands such as the Andaman & Nicobar Command and Strategic Forces Command. He also trained at prestigious institutions including the Royal College of Defence Studies in London. After retiring in 2019, Golani has contributed extensively to military scholarship, co-editing books on air power and national security.

Dr. Deepak Prakash Bhatt, Chairperson of the Global Centre for Climate and Security Governance, is a former Member of Nepal’s House of Representatives and has served on the International Affairs Committee. He holds a PhD from Jawaharlal Nehru University and has contributed to several high-level governmental and academic initiatives, including the task force on reorienting Nepal’s foreign policy and the technical committee for Maoist army integration. A respected educator and researcher, he has also participated in global academic programs, including at the University of Birmingham and DKI APCSS in Hawaii.

Dr. Shalini Chawla is a Distinguished Fellow at CAPS, where she leads the Afghanistan and Pakistan Studies Programme. With more than two decades of experience, she has authored seven books and over 120 articles. She lectures regularly at Indian military institutions and engages in Track 1.5 diplomacy. Dr. Chawla received the Chief of Air Staff's Commendation in 2020 and is affiliated with various strategic forums.

Sixit Bhatta is a tech entrepreneur and co-founder of Tootle, a ride-sharing platform in Nepal. With a background in electronics and communications engineering and an MBA, he has worked in the telecom and banking sectors prior to launching Tootle. He advocates for regional collaboration in digital infrastructure and innovation.

Anadi is a Research Associate at CAPS and is pursuing her M.Phil. at Jawaharlal Nehru University. Her research focuses on traditional and non-traditional security threats, arms control, and fragile states. She has presented at international conferences and is engaged in studying China's influence in Central Asia.

Jay Nishant, a Distinguished Fellow at AIDIA and former head of the Nepal Democracy Foundation, is an experienced democracy and governance expert. He is a Draper Hill Fellow at Stanford University and has worked with organizations such as NDI and MCC. A prominent media figure in Nepal, he has produced current affairs programming and documentaries, contributing significantly to public discourse.

Dr. Pramod Jaiswal, Research Director at NIICE, has held fellowships and teaching positions across Nepal, China, the US, and India. He has worked with renowned institutions and contributed extensively to strategic studies literature. He holds advanced degrees from JNU and has received prestigious scholarships from the Indian Council for Cultural Relations.

This seminar marked a significant step in fostering constructive Nepal-India dialogue by offering new frameworks, promoting digital and green cooperation, and addressing both traditional and emerging challenges in the regional order.