Paper short abstract:

With the changes in the governments in some of the South Asian countries and their governing approaches have direct and indirect consequences to the Nepal's economy and security. This paper examines these dynamics.

Paper long abstract:

The changes of the government in the resent past in India and Sri Lanka and their changed priority have direct and indirect impacts to the Nepal's economy and security. As Nepal's political, economic and security relations with India is unique and changes in any of them in India directly affects Nepal. As the new India government has much emphasis on economic cooperation between Nepal and India and promised to distance from political interference, the priority of Nepal has also shifted and it has direct relations with its economic development and security. However, the still unstable political environment in Nepal and its spillover effects to bordering areas of India as well as bit of over-reliant Madeshi public sentiment in one hand and general Nepali anti-Indian public sentiment on the others are still challenges. Further, growing Chinese interests in Nepal is another concern of India. Likewise, the emergence of new government in Sri Lanka widened scope for Nepal to promote more economic collaboration. This paper will analyze this dynamics.