India-Nepal ties: Jaishankar, Khanal agree to deepen bilateral partnership

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India-Nepal ties: Jaishankar, Khanal agree to deepen bilateral partnership

Synopsis

Beyond the diplomatic pleasantries, the Jaishankar-Khanal meeting produced three concrete deliverables: live cross-border digital payments, handover of 84 India-funded reconstruction projects, and a language-tech MoU — signalling that India is leaning into soft-power infrastructure as its primary tool for anchoring Nepal's strategic alignment.

Key Takeaways

Jaishankar and Nepal FM Shisir Khanal met in New Delhi on 6 June 2025 to review the full spectrum of bilateral ties.
P2P cross-border payment transactions between India and Nepal operationalised under the NCHL-NPCI MoU signed in June 2023 .
India handed over 72 health sector and 12 cultural sector post-earthquake reconstruction projects built with Indian development assistance.
A new MoU signed between Kathmandu University and Digital India Bhashini Division for a 'Voice First' Language Translation Platform.
Khanal also met NSA Ajit Doval separately to discuss bilateral security and strategic matters.

External Affairs Minister S. Jaishankar and Nepal's Minister for Foreign Affairs Shisir Khanal on Saturday, 6 June held wide-ranging talks in New Delhi, agreeing to further deepen and broaden the India-Nepal bilateral relationship through development partnerships, enhanced connectivity, and cooperation on priority areas of mutual benefit. The meeting, confirmed by the Embassy of Nepal in New Delhi, covered the full spectrum of ties between the two neighbouring countries.

Key Announcements

The two Ministers made joint announcements on several concrete deliverables. These included the operationalisation of person-to-person (P2P) cross-border payment transactions under the Memorandum of Understanding between NCHL (Nepal Clearing House Limited) and NPCI (National Payments Corporation of India), originally signed in June 2023. Additionally, the handover of 72 health sector and 12 cultural sector post-earthquake reconstruction projects in Nepal — built with India's development assistance — was formally announced.

Digital Infrastructure MoU

A fresh Memorandum of Understanding was exchanged between Kathmandu University School of Engineering's Centre for Digital Public Infrastructure and Artificial Intelligence and Digital India Bhashini Division. The agreement is aimed at co-creating a National Digital Infrastructure for a 'Voice First' Language Translation Platform, marking a significant step in bilateral technology cooperation.

Breadth of Discussions

According to the Embassy's press release, the talks encompassed trade and economic cooperation, cross-border connectivity, energy partnership, water resources management, and the promotion of people-to-people ties, including through sports. Both sides also reviewed progress on ongoing bilateral projects and cooperation initiatives, exchanging views on ways to accelerate their implementation. Regional and international issues of mutual concern — including cooperation within multilateral forums — were also discussed.

Khanal Meets NSA Doval

Nepal's Foreign Minister Khanal also held a separate meeting with National Security Advisor Ajit Doval at his office in New Delhi on Saturday. The two discussed various matters related to further strengthening Nepal-India bilateral relations, according to the Embassy. This comes amid a broader diplomatic push by Kathmandu to consolidate ties with New Delhi across security, economic, and connectivity dimensions.

What Comes Next

Nepal's Foreign Minister Khanal is scheduled to return to Kathmandu on Sunday. The operationalisation of the NCHL-NPCI payment corridor is expected to ease remittances and cross-border commerce for millions of Nepali workers and traders. With the reconstruction handover and the new digital MoU now formalised, both governments face the implementation test — translating headline agreements into on-ground outcomes.

Point of View

Reconstruction handovers, a language-tech MoU — reveal India's strategic calculus: bind Nepal through infrastructure and digital public goods rather than just diplomatic assurances. The NCHL-NPCI corridor, two years in the making, is particularly significant; it reduces Nepal's dependence on informal remittance channels and gives India a structural role in Nepal's financial plumbing. The Doval meeting, happening in parallel, is a reminder that the relationship carries a security dimension that rarely surfaces in official readouts. Whether these agreements translate into durable alignment will depend on implementation speed — a perennial weak point in India's neighbourhood diplomacy.
NationPress
23 Jul 2026

Frequently Asked Questions

What did India and Nepal agree to during the Jaishankar-Khanal meeting?
India and Nepal agreed to deepen and broaden their bilateral relationship through development partnerships, enhanced connectivity, and cooperation on priority areas. Key outcomes included the operationalisation of cross-border digital payments, handover of 84 reconstruction projects, and a new digital infrastructure MoU.
What is the NCHL-NPCI cross-border payment agreement?
It is an MoU between Nepal Clearing House Limited (NCHL) and India's National Payments Corporation of India (NPCI), originally signed in June 2023, that enables person-to-person cross-border digital payment transactions between India and Nepal. Its operationalisation was jointly announced during the 6 June meeting.
How many reconstruction projects did India hand over to Nepal?
India handed over a total of 84 post-earthquake reconstruction projects — 72 in the health sector and 12 in the cultural sector — all built with Indian development assistance.
What is the Bhashini-Kathmandu University MoU about?
The MoU between Kathmandu University School of Engineering's Centre for Digital Public Infrastructure and Artificial Intelligence and Digital India Bhashini Division aims to co-create a National Digital Infrastructure for a 'Voice First' Language Translation Platform, advancing bilateral technology cooperation.
Did Nepal's Foreign Minister meet anyone else during the New Delhi visit?
Yes, Nepal FM Shisir Khanal also held a separate meeting with National Security Advisor Ajit Doval on Saturday to discuss matters related to strengthening Nepal-India bilateral relations. Khanal was scheduled to return to Kathmandu on Sunday.
Nation Press
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