Nepal’s Gen Z Uprising and Why It Matters for India

Nepal’s recent youth-led uprising has shaken not only Kathmandu’s political establishment but also the assumptions that have long underpinned India–Nepal relations. What began as protests against a social media ban and entrenched corruption quickly escalated into a full-blown political rupture, forcing the resignation of a government, dissolving Parliament, and opening a period of deep uncertainty in India’s immediate neighbourhood.

What Triggered the Gen Z Protests in Nepal

The protests, led largely by Gen Z groups, were sparked by a ban on social media platforms, but their roots ran far deeper. Anger over corruption, economic inequality, unemployment and political unresponsiveness had been simmering for years. Over two days of unrest on September 8 and 9, violence spiralled rapidly — at least 76 people were killed, many more injured, government buildings and Parliament were torched, and thousands of prisoners reportedly escaped amid the chaos.

The upheaval culminated in the fall of the government led by K P Sharma Oli, marking one of the most dramatic political collapses in Nepal’s recent history.

A Sudden Political Reset in Kathmandu

In the aftermath, the office of Nepal’s President announced fresh elections scheduled for March 5, with an interim government headed by the country’s first female Prime Minister taking charge. While this has restored a measure of constitutional order, uncertainty remains high. Institutions have been weakened, trust in political elites is low, and youth movements have demonstrated their capacity to upend established power structures.

For a country that has seen frequent changes of government, this episode stands out for the scale of violence and the generational nature of the revolt.

Why Instability in Nepal Worries India

For India, Nepal is not just another neighbour. The two countries share deep civilisational, cultural and economic ties, reinforced by an open border and close people-to-people contact. Political instability in Nepal directly affects India’s security, regional diplomacy and global ambitions.

As India aspires to a larger global role, persistent turbulence in its immediate neighbourhood is a strategic distraction. Prolonged instability also creates space for external powers, most notably China, to expand influence in ways that may not align with Indian interests.

Cracks in India–Nepal Ties That Predate the Protests

The Gen Z uprising has exposed fissures in bilateral ties that have been widening for over a decade. Traditional connectors — cross-border marriages, Nepali students in Indian universities, and Gorkha soldiers serving in the Indian Army — no longer carry the same political weight among younger Nepalis.

Anti-India sentiment surged after the 2015 economic blockade, which followed Nepal’s new Constitution and coincided with a devastating earthquake. Although India has consistently denied imposing a blockade, many in Nepal viewed it as coercive pressure, leading to fuel shortages and soaring food prices. The episode left a lasting scar on public opinion.

Border Disputes and the China Factor

Relations deteriorated further over territorial disputes. In 2020, Nepal unveiled a new political map claiming Lipulekh, Kalapani and Limpiyadhura as Nepali territory — a move India rejected as unilateral. Tensions intensified after India inaugurated the Lipulekh road to Kailash Mansarovar, which Nepal said passed through disputed land at a sensitive tri-junction involving China.

Nepal also objected when India and China discussed reopening trade through Lipulekh, seeing it as sidelining Kathmandu. These disputes, combined with growing Chinese investment in Nepalese infrastructure, have nudged Nepal closer to Beijing, complicating India’s strategic calculus.

Economic Cooperation as the Most Viable Reset

Despite political strains, economic cooperation offers a pragmatic path forward. Hydropower is a standout opportunity. Nepal’s vast hydropower potential aligns with India’s growing energy needs. The 2024 power trade agreement allowing India to import up to 10,000 MW over a decade could be transformative, generating revenue and jobs in Nepal while supporting India’s clean energy transition.

Beyond energy, India can support Nepal in tourism, trade, construction and infrastructure. Expanding transmission lines, promoting joint ventures and easing trade barriers could anchor stability more effectively than rhetoric or pressure.

Dialogue on Borders, Not Megaphone Diplomacy

Boundary disputes remain emotionally charged, but escalation benefits neither side. Reviving a joint boundary commission with genuine intent, supported by historical records and possibly neutral experts, could help depoliticise the issue. Quiet diplomacy and backchannel talks are more likely to succeed than public posturing.

For Nepal, parallel diplomatic engagement with both India and China will be essential to avoid being caught in zero-sum rivalries.

Rebuilding Trust Through People-to-People Ties

India remains Nepal’s largest source of tourists. Improving connectivity, joint tourism promotion and skill-sharing in hospitality could create employment opportunities for Nepali youth — the very cohort that drove the protests. Streamlining customs, easing transit rules, and enabling Nepali agricultural and organic exports to India would strengthen rural livelihoods.

Collaboration in startups, technology and innovation could also appeal to Gen Z aspirations, giving the bilateral relationship a future-oriented foundation.

The Risks of Inaction

Sceptics in Nepal fear over-dependence on India, while hardliners in India may advocate a tougher, more coercive approach. Yet the costs of drift are higher. Allowing mistrust to harden risks pushing Nepal further into strategic alignments that limit India’s influence in its own neighbourhood.

A Test of Regional Leadership

Nepal’s Gen Z uprising is a reminder that South Asia’s politics are changing rapidly, driven by younger, more connected populations. For India, responding with empathy, economic partnership and diplomatic maturity will be a test of its claim to regional leadership.

A stable, prosperous Nepal is not just desirable for Kathmandu; it is essential for India’s own strategic and developmental ambitions. Deepening cooperation — rather than letting resentment fester — offers the only sustainable path forward in this new era.