Nepal and India have agreed to reactivate bilateral mechanisms to resolve outstanding issues. This happened during a meeting between Prime Minister KP Oli and his Indian counterpart, Narendra Modi, in New York on Monday morning.

Nepal and India have over a dozen mechanisms in order to look into various issues ranging from trade and transit, border and boundary, energy cooperation, cooperation in the field of water resources, inundation, security, connectivity, and infrastructure.

“However, some issues that Nepal wanted to discuss with the Indian side did not come up categorically as this is a sideline meeting,” a Nepali diplomat in New York told the Post. More discussions will follow at different working level mechanisms, according to the diplomat.

“At least we’ve resumed communications at the highest political level. This will be followed up, further discussions will take place in upcoming meetings and during Modi’s next visit to Nepal,” said the diplomat.

The meeting lasted 45 minutes and focussed on strengthening bilateral relations, according to both the sides. This was the first meeting between Modi and Oli since they took office in June and July, respectively.

“Had a fruitful meeting with the Prime Minister of India Shri @narendramodi ji on the sidelines of UNGA79. During the meeting, various matters of bilateral relations were discussed,” Oli wrote on social media platform X.

“Had a very good meeting with Prime Minister KP Oli in New York. The India-Nepal friendship is very robust and we look forward to adding even more momentum to our ties. Our talks focused on issues such as energy, technology and trade,” Indian Prime Minister Modi wrote on X.

Talking to the Post after the meeting between the two delegations, Foreign Minister Arzu Rana said that the two countries have agreed to activate the established bilateral mechanisms in order to resolve the outstanding issues.

“During the meeting, we discussed the upcoming visit of the Indian prime minister to Nepal, as per our earlier invitation,” she said.

“We are encouraged by Modiji’s interest in visiting Nepal, which would be a positive gesture,” she said.

In the meeting, Oli said he wanted trouble-free relations with India and offered to work together to explore opportunities. Modi agreed and stressed the need for moving ahead with renewed zeal and commitment, according to another diplomat who is also in Oli’s delegation in New York.

“Modi proposed resolving all outstanding issues through established mechanisms and our prime minister agreed,” the diplomat told the Post.

While no specific date for Modi’s visit to Nepal was mentioned, officials from both sides have been instructed to prepare for the visit, possibly in November or December, according to the diplomat.

“Former Prime Minister Pushpa Kamal Dahal visited India twice in 2023 and 2024, so it is now India’s turn to reciprocate,” the Nepali diplomat said. “Modi seems enthusiastic about visiting Nepal.”

Among Indian prime ministers, Modi has come to Nepal the most number of times. He has already visited Nepal five times.

During her August visit to India, Foreign Minister Rana, speaking on behalf of prime minister Oli, had extended Modi an invitation to come visit Nepal.

In a brief comment to the media, Prime Minister Oli said that he had a good meeting with Modi.

A statement issued by India’s Ministry of External Affairs after the meeting said the two leaders reviewed the unique and close bilateral relationship, and expressed satisfaction at the progress in diverse sectors including development partnership, hydropower, people-to-people ties, and connectivity—physical, digital and in the domain of energy.

During the meeting, Modi congratulated Nepal on becoming the 101st country to join the International Solar Alliance (ISA) as a full member, and underscored the importance of a regional response to climate challenges.

​”Nepal is a priority partner of India under its Neighbourhood First Policy. This meeting continues the tradition of regular high-level exchanges between India and Nepal in furtherance of our Neighbourhood First policy,” said the Indian foreign ministry statement.

Besides Modi, Oli also had several meetings with visiting heads of state and government.

On the sidelines of the UN general assembly, Oli had a bilateral meeting with the Crown Prince of Kuwait, HH Sheikh Sabah Al- Khalid Al-sabah. “We discussed matters of common concern, from labour relations to promotion of trade, tourism and investment,” Oli wrote on X after the meeting.

Oli also chaired the Summit of the Future Interactive Dialogue 1: “Transforming global governance and turbocharging the implementation of the 2030 agenda for sustainable development” on the margins of the general assembly.

In his address, Oli urged all development partners to meet the target of 0.7 percent gross national income in overseas development assistance and 0.2 percent in the case of the least developed countries. He called for the implementation of the SDG Stimulus and combatting illicit financial flows.

Closing the digital divide is urgent to ensure a digital future for all, he said, while underscoring the reform in the governance structures of international financial institutions to ensure they are more inclusive, transparent, and accountable.

He also emphasised the urgency of comprehensive debt relief initiatives tailored to the unique circumstances of developing countries including LDCs like Nepal.

“Climate adaptation and mitigation funds must be increased, loss and damage funds should be operationalized,” said the prime minister, saying that transforming global governance and accelerating the implementation of the 2030 Agenda is vital to leave no one behind.