Opinion | How India Should Navigate A 'New' Nepal

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Harsh V. Pant
  • Opinion,
  • Updated:
    Mar 10, 2026 17:16 pm IST

On March 5, 2026, Nepal went to the polls in a snap general election for its 275-member House of Representatives, the first electoral test after the tumultuous protests of September 2025 that forced the resignation of then Prime Minister KP Sharma Oli. The vote, held amid intense political ferment, drew roughly 60% turnout from over 18.9 million registered voters, including nearly one million first-time Gen Z voters. The verdict has been nothing short of transformative. The four-year-old Rastriya Swatantra Party (RSP), led by rapper-turned-politician Balendra Shah - widely known as Balen - delivered a stunning performance, capturing 120 of the 165 first-past-the-post seats and emerging as the largest force in proportional representation with 49.14% of the vote. This places the party on course to command around 180 seats overall, a decisive majority.

The election simultaneously marked the collapse of Nepal's traditional political order. The once-dominant Nepali Congress was reduced to 17 seats, a fall of seventy-two from 2022, while the Communist Party of Nepal - Unified Marxist-Leninist (CPN-UML) secured only seven seats, down seventy-one. The Nepal Communist Party (NCP) also slipped to seven seats. Smaller formations such as the Shram Sanskriti Party managed three seats, while the Rastriya Prajatantra Party and a handful of independents secured single victories. The symbolism of the moment was underlined in Jhapa-5, where Shah defeated Oli himself-an outcome widely read as the electorate's repudiation of the entrenched political elite. Finalised by 8 March, the results effectively clear the path for an RSP-led government, most likely under Shah's leadership, bringing to an end a prolonged cycle of instability that has produced fourteen governments in seventeen years.

Several factors converged to produce this dramatic political shift. At the heart of the upheaval lay the Gen Z protests of 2025, triggered by Oli's controversial decision to ban 26 social media platforms, a move widely perceived as an attempt to silence youthful dissent. The ban collided with mounting frustrations over youth unemployment - exceeding 20 per cent among those aged 15-24 - and a steady exodus of talent, with roughly 1,500 Nepalis leaving the country daily. What began as online activism under hashtags such as #NepoKid, targeting corruption and dynastic politics, quickly spilt onto the streets. The "Day of Rage" protests of September 8-9 in 2025 left 76 people dead and more than 2,000 injured, precipitating Oli's resignation and the dissolution of parliament on 12 September 2025. An interim administration led by Sushila Karki-Nepal's first female prime minister-oversaw the transition to elections.

The broader political context amplified the revolt. Since the democratic opening of the 1990s, Nepali politics has largely revolved around the Congress-UML axis, but persistent factionalism and corruption scandals have steadily eroded public confidence. Against this backdrop, the RSP successfully projected itself as a vehicle of generational change. Shah's profile -cultivated during his tenure as mayor of Kathmandu - combined anti-corruption rhetoric with a populist appeal rooted in digital mobilisation. The party's centrist-liberal platform, promising transparency, institutional reform and economic revitalisation, resonated strongly in youth-heavy constituencies such as Jhapa-5, where turnout surged. The fragmentation of the political field-143 parties and over 3,400 candidates-further advantaged the RSP, whose social media-driven campaign proved adept at aggregating protest sentiment, even absorbing smaller reformist groups such as the Bibeksheel Sajha Party.

For Nepal, the implications of this verdict are both promising and uncertain. The RSP's dominance signals a generational reset in a political system long criticised for stagnation. Its manifesto promises anti-corruption commissions, greater transparency and youth representation in governance, reflecting the aspirations of the protest movement that propelled it to power. Economically, Shah's emphasis on digital innovation, remittance reforms and infrastructure development, particularly in hydropower, could help sustain growth and address the structural drivers of migration. Yet the scale of the victory also presents risks. A single-party majority - requiring 138 seats - may finally end Nepal's chronic coalition instability, but it will also test the administrative capacity of a relatively inexperienced party. Should expectations outpace delivery, the same youthful energy that elevated the RSP could quickly turn into a source of political volatility.

There is cautious optimism in India about the future. Bilateral ties have been strained in recent years, particularly over border disputes involving Kalapani, Lipulekh and Limpiyadhura, which intensified after Nepal's 2020 map revision. Major Indian projects-including the Arun-3 hydropower venture-had slowed following the 2025 unrest as New Delhi waited for political stability to return. The emergence of a stable government in Kathmandu could provide an opportunity to reset the relationship, especially in areas such as cross-border energy trade, where Nepal already exports several hundred megawatts of electricity to India. At the same time, Shah's assertive nationalism and his past criticism of India's perceived "big brother" approach may inject a sharper tone into the bilateral conversation.

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Complicating matters further is the strategic dimension. Beijing's economic footprint in Nepal has expanded steadily through infrastructure investments under the Belt and Road Initiative, including projects such as the Pokhara international airport. A government seeking to diversify Nepal's external partnerships will attempt to balance ties between New Delhi and Beijing, a development that will inject some inevitable tension. Most governments in South Asia indulge in this necessary balancing, but the texture of this balancing often ends up determining bilateral terms of engagement.

Nepal's 2026 election represents more than a routine change of government-it reflects a political realignment driven by a new generation of voters. Whether this moment translates into durable institutional reform or merely another cycle of political disappointment will depend on how effectively the RSP converts protest energy into governance. For India, the moment calls for careful diplomatic recalibration, recognising that the political landscape in Kathmandu has changed in ways that cannot be addressed through old assumptions.

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(Harsh V Pant is Vice President for Studies at Observer Research Foundation, New Delhi.)

Disclaimer: These are the personal opinions of the author

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