Nepal at a Crossroads: India’s Development Aid Clashes with Pro-Monarchy Unrest

Nepal stands at a pivotal juncture, balancing advancement with unrest. On April 1, 2025, India and Nepal deepened their partnership through 10 Memorandums of Understanding (MoUs) valued at Nepalese Rs. 625 million, targeting community development. As reported by The Hindu (“India, Nepal ink 10 MoUs worth Nepalese Rs.625 million for community development projects,” April 2, 2025), these Indian-funded initiatives will support Nepal’s education, health, and cultural sectors, including three schools, a monastery, an e-library, and two health posts. Since 2003, India has driven over 573 such projects, completing 495, strengthening ties amid Nepal’s shifting dynamics.

Concurrently, political instability plagues the nation. Pro-monarchy protests, which turned fatal on March 28, claiming at least two lives and injuring over 100, persist with vigor. Fueled by the Rastriya Prajatantra Party (RPP) and public discontent over 13 governments in 17 years and economic struggles, demonstrators demand the monarchy’s restoration, dissolved in 2008. Frontline notes on April 2 (“Dissatisfaction with Governance Is Growing: Nepal’s Pro-Monarchy Protests Intensify,” April 2, 2025) that Prime Minister KP Sharma Oli’s claims of former King Gyanendra Shah stoking the unrest have widened divisions. As of April 17, 2025, Kathmandu remains tense despite a partially relaxed curfew, highlighting the divide between Nepal’s developmental progress and its internal strife.

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