PM Shah's India Visit Offers Chance to Reset Ties After Oli Era Disputes

**TL;DR**: Prime Minister Balendra Shah's upcoming visit to New Delhi offers a chance to reset Nepal-India relations after years of friction under his predecessor, though territorial disputes will limit how far either side can compromise.

Prime Minister Balendra Shah is expected to visit New Delhi in the coming weeks after receiving a formal invitation from Indian Prime Minister Narendra Modi shortly after taking office on March 27. The trip follows the tradition of Nepali heads of government making India their first foreign destination.

The visit comes as Kathmandu and New Delhi signal a willingness to move past the contentious relationship that defined the KP Oli era. Oli, who served three terms as prime minister, took a hard nationalist stance during the 2015-16 border blockade and later amended Nepal's constitution to include a new map showing the disputed Kalapani, Limpiadhura and Lipulekh territories as part of Nepal. India claims all three areas. Oli also mocked India's national emblem and sparked controversy by claiming Nepal rather than India was the birthplace of Lord Ram.

India grew increasingly reluctant to engage with Oli, often portraying him as aligned with Beijing. That dynamic has shifted with Oli now sidelined from Nepali politics and the Rastriya Swatantra Party leading a new government.

However, the new administration faces constraints. India and China recently announced the reopening of trade through the Lipulekh pass without consulting Kathmandu, despite the route passing through a trijunction point involving Nepal. Shah will likely face pressure to raise this issue during talks. More significantly, any attempt to negotiate away sovereign Nepali territory in the Kalapani area would devastate the government's political credibility at home.

Both sides have indicated they want the visit to produce substance beyond ceremony. Potential areas of cooperation include an additional air route for landlocked Nepal and greater consultation on cross-border trade. What to watch next is whether the two capitals can find practical agreements that sidestep the territorial disputes neither side can afford to concede on.