In response to the escalating crisis in Nepal, Indian Prime Minister Narendra Modi convened a meeting of the Cabinet Committee on Security (CCS) on Tuesday, emphasizing the critical importance of stability, peace, and prosperity for the Himalayan nation. The meeting followed violent protests that led to the resignation of Nepalese Prime Minister K.P. Sharma Oli.

The catalyst for the unrest was the government's ban on social media platforms, which triggered widespread demonstrations, primarily led by young people, against corruption, nepotism, and misgovernance. The protests, dubbed "Gen Z protests," quickly escalated, resulting in clashes with security forces and the tragic loss of at least 19 lives, with hundreds injured.

Amidst the turmoil, protesters stormed government buildings, political party offices, and the residences of prominent politicians, including the Prime Minister's private home and the Parliament building, setting them ablaze. In response, authorities imposed curfews and deployed the army to maintain order.

Prime Minister Modi expressed his anguish over the violence and loss of life, appealing to the people of Nepal to support peace. He reiterated India's commitment to Nepal's stability and security, recognizing its crucial importance for India's own national security, given the geographical proximity and strategic ties between the two countries.

The Ministry of External Affairs (MEA) in India also conveyed its concern, stating that it was closely monitoring the developments and hoped for a peaceful resolution through dialogue. The MEA advised Indian nationals in Nepal to exercise caution and adhere to the guidelines issued by Nepali authorities.

The protests reflect a growing frustration among Nepalese youth with the political class, citing issues such as corruption, political instability, and a lack of economic development. The ban on social media was seen as an attempt to suppress criticism of the government, further fueling the unrest. The resignation of Prime Minister Oli has created a political vacuum, leaving the future leadership of Nepal uncertain. President Ramchandra Paudel has accepted Oli's resignation and has begun the process of choosing a new leader.

India and Nepal share deep-rooted ties, characterized by an open border and close people-to-people connections. The two countries have a longstanding Treaty of Peace and Friendship from 1950, which underscores their strategic relationship. India is Nepal's largest trading partner, and the country relies on Indian ports for trade. Moreover, India supports the modernization of the Nepal Army and provides essential training. About 32,000 Gorkha soldiers from Nepal are currently serving in the Indian Army.

Given these close economic and security ties, the instability in Nepal is a cause of concern for India. Protracted unrest could disrupt supply chains and affect trade. India's exports to Nepal in FY25 were valued at $7.32 billion, while imports totaled $1.2 billion. Any disruptions to transport routes and cross-border logistics could impact the movement of essential goods. Several cross-border hydropower projects are also in development with Indian investment, and the political uncertainty could jeopardize these projects.

As Nepal navigates this political crisis, India has adopted a "wait-and-watch" approach, emphasizing the need for dialogue and peaceful resolution. India's focus remains on ensuring stability in Nepal, which is deemed essential for regional security and continued economic cooperation.