Nepal is one of many South Asian countries where India and China seek influence. India has long regarded Hindu-majority Nepal, the Himalayan nation of 30 million, as a natural ally by virtue of their close historical ties and long open border.
Narayan Kaji Shrestha, a senior member of Prachanda’s Maoist Center Party and expected to become a cabinet minister, said, “We will maintain equally close relations with both our neighbors.”
“We must immediately focus on controlling inflation, maintaining reserves, increasing capital expenditure, reducing the trade deficit and lowering interest rates.”
Other party leaders echoed Shrestha’s views, speaking on condition of anonymity ahead of the swearing-in of the new ministers.
Beijing and New Delhi have pumped billions of dollars in aid and investment into Nepal, which is rich in potential to generate hydroelectric power.
Prime Minister Narendra Modi of India, which is Nepal’s biggest trade and economic partner, was one of the first foreign leaders to wish Prachanda, who has been prime minister twice before.