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Nepal is extremely susceptible to outside influence because of its
geostrategic position. Being a small, landlocked nation crammed between China
and India, two of the most powerful nations in Asia. Nepal is always the target of
regional aspirations and conflicts. In order to protect its independence and national
security, Nepal's foreign policy has focused on the difficult challenge of
maintaining good relations with all parties. The paper discusses about the
consequences of growing Nepalese affinity towards China on the long-time friend
and neighbor state India from mid-20th century till today. Due to Nepal's difficult
democratic transition, frail institutional foundation, and unfavorable civil-military
relations, China seems to have several possibilities to develop significant influence
inside the country's political and administrative system. Furthermore, the
relationship between Kathmandu and New Delhi is severely impacted by NepalChina collaboration, particularly in the areas of security and defence. In conclusion,
China's increasing involvement in Nepal has significant security repercussions for
New Delhi since it signals an entrance into the country's sphere of influence. The
paper attempts to categorically analyze these developments, firstly the paper
discusses the geopolitical relevance of Nepal between India and China, further it
elaborates on the historical links and the political and diplomatic engagements
between these states. It also discusses the change in dynamics between the cold war
period and post-cold war period. In conclusion, the paper aims to discuss the
contemporary policy changes and challenges for New Delhi. The paper concludes
with an understanding that balancing is the most viable option that is present for the
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