In addition to internal troubles what makes India more apprehensive about its comprehensive security has been the growing 'anti-India' attitude in the Himalayan state of Nepal. This most favoured friend of India has turned over the months into her bitterest critic and accuser. And lo, Nepal has even revived its old tactics of playing the 'China card' against India. Under the circumstances India has been compelled to remain on the defensive.

In the metamorphosing state of affairs in Nepal, its attitudinal changes towards India have been a new development that has caused much embarrassment to India. Among these, are the demands by the CPN-Maoists (the party that leads the coalition in the Constituent Assembly) to review or scrap the Treaty of Peace and Friendship of 1950 with India; its leader and Nepalese Prime Minister, Prachanda, calls the 1954 Kosi treaty between India and Nepal a 'historic blunder'; anti-Hindi protests are on the rise, and the delay in government formation has been attributed to India's involvement; and it is alleged that India is in illegal occupation of Nepal's territory through the Sagauli Treaty. The other issues having security implications for India are the demand to seal the open border with India, a clandestine design to extend the 'Red Corridor' until Andhra Pradesh and the withdrawal of Nepalese Gorkhas from the Indian Army.

Today, China is found to have shown more interest in the affairs of Nepal which has been reciprocated by Nepal as well. A pollution-free Mount Everest, extension of the Qinghai-Tibet railway line to the Nepal border with the intention eventually extending it up to Kathmandu in future, pouring aid into Nepal under its Western Development Programme, sending more than 26 delegations to Nepal in over the last couple of years, and 'time and again warnings' served by Beijing to any external powers not to interfere in the affairs of Nepal - are instances of growing Chinese interest in the newest republic in the world. India is lagging behind China in congratulating Nepalese leaders upon their election to the offices of President and Prime Minister of the Federal Democratic Republic of Nepal. And the much talked about 'Olympic Politics' (that compelled the new Prime Minister of Nepal to make his maiden visit to China breaking a long tradition established with India) has exposed China's hidden strategic ambitions in coming closer to the Himalayan state.

For its part, Nepal has been found to be very loyal and faithful to China at the cost of India's displeasure. Nepal has been acting on the insistence of China in cracking down on the pro-Tibetan independence movements for last five months in Nepal even if it displeased the US. Even the furniture bought for the use of the Prime Minister and President of the Republic has been imported from China.

During Prachanda's first visit to China after assuming office he had an hour-long meeting with the President of China, Hu Jintao on 24 August, 2008 despite the latter's busy schedule on the closing day the 29th Olympics in Beijing. Even as the Bird's Nest arrested the attention of five continents, from a closed chamber in Beijing a Himalayan quest was initiated. China acknowledged 'Nepal's special attention to China' seen in the tour by its Prime Minister and declared a large assistance package to the flood victims of Nepal.

While Nepal has declared that it wishes to maintain a policy of equidistance with China and India by adhering to principles of Panchsheel, the ascendancy of Sino-Nepal relationship has heightened India's security concerns. Once the Himalayan barrier is breached India's territorial security is expected to face a challenge being exposed to Chinese aggressive designs through Nepal. India is quite aware of the defense preparedness and logistics development of China in the Tibet Autonomous Region and if Nepal allows China easy access to its territory India's security will be in jeopardy. The said railway line is expected to reduce trade and imports dependence of Nepal on India, also affect India's economy. In this way India fears losing not only a strategic friend but a sizable market. China has also annoyed India by eyeing some portion of the territories of Sikkim and Arunachal Pradesh. Given the circumstances India's external affairs establishment has to gear itself up to cement its ties with Nepal.