Indian Politics Research Papers - Academia.edu (original) (raw)

The research will focus on Nepal's foreign relations and the economic slowdown that
followed the earthquake. This study takes the objectives to study present economic
slowdown of Nepal with regards to pandemic, earthquake, war sanctions, and oil
embargoes and also analyze war and threat lead economic crisis of the country. The
different chapter clarifies as causes of the economic slowdown catastrophe for the
reliant small state.
The study employs descriptive, explorative, and explanatory analytical methods to
analyze the collected data. These methods are chosen to provide comprehensive
insights into the economic and international relations dynamics following the
pandemic and earthquake events. Supply value chain and complex interference of
Nepal very complex after earthquake and pandemic due to multiple crisis like
blockade of India, earthquake, pandemic and Ukraine crisis reflection.
Nepal's economic crisis, triggered by global and domestic factors like earthquakes,
COVID-19, and Russia-Ukraine war, has led to high lending rates, trade deficits,
declining industrial production, and rising unemployment. Inflation,
disproportionately affecting the poor, and government efforts to improve conditions
have not translated into improved conditions. Nepal's economy faces challenges like
low capital investment, high public debt, and insufficient demand, necessitating
reduction in import reliance, hydropower promotion, economic diplomacy improvement, and structural reforms.
Nepal opposes repeating past agreements, fearing Indian bureaucracy's lack of
recognition, potentially weakening its ability to protect its interests in growing
dependence on India. Nepal's government needs to reassess its foreign exchange ties
to India, review legislative measures like BAFIA , relax foreign investment
restrictions, and promote businesses abroad, while maintaining a $15 billion reserve
currency.