Data_Development Engagements in Nepal A Comparative Study of India and China.xlsx

To achieve middle-income status by 2030 for Nepal, the World Bank Report on Nepal’s Infrastructure Sector Assessment states that annual investments in infrastructure development will be around 10-15% of GDP (on an average of around USD 5.45 billion). The study aims to explore the evolving dynamics of India’s and China’s infrastructure development cooperation with Nepal from 1947 to 2024, focusing on their strategies, motivations, and implications, using the ISOCE framework (Interventions, Strategy, Outcome, Concerns, and Expectations). It examines the impact of infrastructure development initiatives and the contrasting approaches to Nepal’s infrastructure growth and sustainability. The objectives of the study are to assess the strategic motivations and development cooperation policies of India and China and evaluate the outcomes and concerns of the initiatives. The methodology uses archival research, secondary data from government reports, think tank studies and media sources to overcome gaps in official data. The findings show that India's grant-based assistance to Nepal focuses on capacity-building and infrastructure development projects that meet the needs of the local communities. At the same time, China prioritizes large-scale infrastructure projects funded through loans. Both countries have contributed to Nepal’s development despite the challenges, such as debt management and alignment with Nepal’s development priorities. The study concludes that development cooperation is crucial for Nepal's socio-economic growth and regional stability. It emphasises that India should enhance its role as a reliable development partner and neighbour by optimizing its development cooperation strategies to ensure capacity building and equitable and sustainable development in Nepal.