Nepal is important for India's security concerns due to its geostrategic location in South Asia. India and Nepal have maintained a long standing friendship in the region based on the Indo-Nepal Friendship Treaty, 1950. Since 2015, this relationship has been on a steady decline, and China has started playing a major role in Nepal. This thesis examines the underlying causes of the drift in the Indo-Nepal relations and increasing Chinese influence in Nepal. Keeping this in view, the thesis goes on to analyze possible options available to India for improving this relationship, suggesting the most suitable strategy for India moving forward, which is also feasible to be executed, and acceptable to all stakeholders.

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