The overthrow of Nepal’s government this month is the latest sign of political unrest rattling India’s neighbors and testing New Delhi’s regional influence. Prime Minister K.P. Sharma Oli resigned after protests led by young Nepalis denouncing corruption, elitism and inequality. Former Chief Justice Sushila Karki has been installed as caretaker prime minister until elections in March.
The turmoil echoes other upheavals in South Asia. Bangladesh’s longtime leader Sheikh Hasina was ousted last year, while Sri Lanka’s economic collapse forced out its president in 2022. Analysts warn the instability opens space for China, which has stepped up investments in ports, energy and infrastructure projects across the region.
India, which promotes a “Neighborhood First” policy, is under pressure to manage ties without being seen as either bullying or neglecting its partners. Observers say failure to act risks ceding ground in its own backyard to Beijing.