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Significance

Political turmoil began when Nepal, after seven years of deliberation, promulgated a new constitution on September 20. Violence is concentrated in the Terai, bordering India, and has already cost over 40 lives. The local Tharu and Madhesi peoples reject the structure of the federal state, which they fear will marginalise them.

Impacts

Since China's investment capabilities far outstrip India's across South Asia, Beijing will successfully woo India's smaller neighbours.

Small-scale violence in Nepal will probably continue, affecting tourism.

The tiff between India and Nepal could prevent India from realising its energy investments in Nepal.

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