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Significance

Delhi earlier this year irked Kathmandu by inaugurating a new road in the area. Although India has historically dominated Nepal’s politics and diplomacy, Delhi and Beijing now vie for influence over Kathmandu.

Impacts

Nepal will increase diplomatic engagement with India’s enemy Pakistan.

Delhi will step up development cooperation with Bhutan, which like Nepal abuts the India-China border.

Anti-India sentiment in Nepal will grow.

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