Situated at the top of the world, Nepal has historically been sandwiched between two civilizational giants – India and China. But in 2025, its position is best described not as passively caught between a rock and a hard place, but as an active and precarious geopolitical tightrope walker. It is not just a buffer state, but a strategic actor, albeit one with limited capabilities, that is trying to exploit the rivalry of its powerful neighbors to achieve its own goals: national development, economic diversification, and, ultimately, the strengthening of sovereignty.
For decades, Nepal has skillfully navigated between Delhi and Beijing, maintaining a fragile balance. But the stakes are higher than ever. China, pushing its global Belt and Road Initiative (BRI), is seeking to transform Nepal from a landlocked country into a land-linked one, with ambitious infrastructure projects that could permanently change the region’s economic geography. India, for its part, is stepping up its “Neighbourhood First” policy, seeking to strengthen historic ties and counter Beijing’s growing influence through its own investments, particularly in the strategically important energy sector.
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By Alpha Business MediaSituated at the top of the world, Nepal has historically been sandwiched between two civilizational giants – India and China. But in 2025, its position is best described not as passively caught between a rock and a hard place, but as an active and precarious geopolitical tightrope walker. It is not just a buffer state, but a strategic actor, albeit one with limited capabilities, that is trying to exploit the rivalry of its powerful neighbors to achieve its own goals: national development, economic diversification, and, ultimately, the strengthening of sovereignty.
For decades, Nepal has skillfully navigated between Delhi and Beijing, maintaining a fragile balance. But the stakes are higher than ever. China, pushing its global Belt and Road Initiative (BRI), is seeking to transform Nepal from a landlocked country into a land-linked one, with ambitious infrastructure projects that could permanently change the region’s economic geography. India, for its part, is stepping up its “Neighbourhood First” policy, seeking to strengthen historic ties and counter Beijing’s growing influence through its own investments, particularly in the strategically important energy sector.