South Asia

Nepal faces a unique dilemma – that of being situated between two Asian giants, India and China. In October 2020, the Nepali foreign minister, Pradeep Gyawali, said that the government was formulating a new foreign policy with an objective of utilising its unique geographic position for economic development. In the recent times, there have been tensions between India and Nepal, with the latter accusing the former of implementing an economic blockade (something India has not acknowledged). Meanwhile, there is a budding economic relationship between Nepal and China. Going forward, it will be important to watch how Nepal strikes a balance between the two neighbours whilst promoting its own interest.
Apart from this feature story, the newsletter looks at the first year of the Gotabaya Rajapaksa government in Sri Lanka, Pakistan’s budding role as the leader of a new Islamic grouping and India’s economic revival post-COVID-19. It also presents a comprehensive listing and summary of the key events and publications at ISAS.