Nepal’s election will intensify China-India rivalry

Subject

Nepal's general election.

Significance

Nepal will stage legislative elections on November 26 and December 7. Delhi and Beijing, which are tussling for influence over Kathmandu, will be watching the outcome carefully.

Impacts

• Kathmandu may seek to deepen trade ties with Dhaka and Colombo.
• Nepal is likely to continue to suffer from the effects of India’s demonetisation, with Nepalis losing savings.
• Beijing will step up efforts to invest in South Asian countries surrounding India.