Nepal Political Crisis 2025

Syllabus Areas:

GS II - International Relations (India and its Neighbours)

Nepal is witnessing a phase of intense social and political unrest, triggered not by a single event but by a cumulative build-up of grievances among its people, especially the youth. Nepal has had 14 Governments since 2008, not one of which has completed a full 5-year term.

A timeline of major events in Nepal:

1951:

  • Ranas of Nepal, a Chhetri dynasty, are overthrown by ascendant pro-democracy movements and a parliamentary democracy is established

1961-1990:

  • King Mahendra bans political parties in 1961, imposes a return to a centralised system of government that consolidates his power.
  • People's frustration with the system peaked in 1990 leading to protests.
  • King Birendra lifts ban on political parties.

1996:

  • Nepal's left-wing Maoists start a violent bid to replace the royal parliamentary system with a people's republic.
  • That leads to a decade-long civil war and caused more than 17,000 deaths

2006-2015:

  • Civilians protested against the monarchy in 2006, leading to its abolition in 2008, making Nepal a federal democratic republic.
  • In 2015, Nepal adopted a new constitution.

2015 to present:

  • KP Sharma Oli took over as PM for the first time in Oct 2015 and his government lasted for about a year. He is elected for the second and third time successively in 2018 and 2021 and for the fourth time in 2024.

Immediate Trigger: The Schoolgirl Incident

  • On Sept 6, around 7:15 am, an official jeep carrying Koshi Province minister Ram Bahadur Magar hit 11-year-old Usha Magar Sunuwar outside her school in Lalitpur.
  • CCTV footage showed the vehicle flinging her to the roadside and then driving away.
  • The child survived with injuries, but the government convoy abandoning her sparked outrage across Nepal.
  • Former PM P. Sharma Oli called it a “normal accident” and only offered to cover her medical expenses.
  • This “callous and entitled” remark deepened anger, reinforcing public perceptions of political arrogance and impunity.

Public Outrage and Mobilisation

  • Outrage was immediate in Kathmandu’s colleges, tea stalls, and streets.
  • Young people saw the incident as proof that citizens’ lives don’t matter to politicians.
  • The incident became a symbolic spark, igniting pent-up frustration about corruption, nepotism, unemployment, and lack of dignity.

Structural Grievances Behind the Protests

  • Youth Unemployment:
    • Among the highest in South Asia.
    • In 2024, the jobless rate for ages 15–24 was 20.8% (World Bank data).
    • Many migrate to the Gulf and Malaysia; those who stay face inflation, weak infrastructure, and political neglect.
  • Dependence on Remittances:
    • Over 33% of Nepal’s GDP (33.1%) comes from remittances.
    • Emigration is seen as “soft exile” – either leave the country or live without dignity.
  • Corruption & Nepotism:
    • Successive governments plagued by corruption scandals.
    • Ministries and embassies filled with political families’ children and relatives.
    • Ordinary citizens feel shut out of opportunities, reinforcing elite capture.
  • Rise of “Nepo Kids”:
    • Children of politicians flaunting lavish lifestyles online (Instagram/TikTok).
    • Seen as an insult to struggling youth, especially amid unemployment.
Nepal Political Crisis 2025

The Social Media Ban – A Catalyst

  • Government imposed a ban on 26 social media platforms just hours before the accident.
  • The ban, instead of silencing dissent, added fuel to the protests.
  • Social media had been the space where frustration about corruption, nepotism, and “nepo kids” was already brewing.

Protest Dynamics

  • Protest slogans like “Oli chor, desh chhod” (Oli thief, leave the country) gained traction.
  • Anger framed as betrayal of democracy – politicians ruling like a “monarchy of ministers.”
  • Protesters emphasized they were educated, aware, and no longer willing to wait for change.

Political Reactions

  • Opposition & Academics:
    • Analysts described the protests as “inevitable” due to decades of neglect.
    • Scholars argued the incident exposed apathy and broken trust between people and politicians.
  • Ruling Class Response:
    • Nepali Congress leader NP Saud admitted corruption/nepotism were real but insisted on resolving them through due process and the constitution.
    • Protesters, however, saw this as too little, too slow, demanding immediate accountability and justice.

Key Points on 2015 Earthquake & Gen Z Movement in Nepal

  • The 2015 Nepal earthquake became a turning point for the country’s youth and reshaped Sudan Gurung, once part of Kathmandu’s nightlife scene.
  • Witnessing a child die in his arms during the quake pushed Gurung to form Hami Nepal (We are Nepal), starting with small relief like rice sacks.
  • His first online plea gathered nearly 200 volunteers, who delivered food, pitched tents, and ferried the injured.
  • Over the years, Hami Nepal grew into a structured NGO, formally registered in 2020, with 1,600+ members.
  • Unlike many grassroots groups, it became known for discipline, logistics, and trust-building, earning praise from mentors like eye surgeon Sanduk Ruit.
  • By 2024, as anger against corruption, nepotism, unemployment, and the social media ban grew, Hami Nepal became the platform for Gen Z protests.
  • Gurung called students to march in school uniforms with textbooks in hand, symbolising purity of cause.
  • Protesters also raised the “Straw Hat Jolly Roger” flag (from anime One Piece), a cultural code of rebellion against authority.
  • Gurung, at 38, straddles generations: old enough to remember monarchy and insurgency, yet young enough to embody Gen Z impatience.
  • Today, Hami Nepal stands as the architecture of Gen Z politics, symbolising unity, trust, and resistance beyond party lines.

Events in India’s Neighbourhood

  • I. Afghanistan (Aug 2021)
    • Event: US withdrawal → Taliban swiftly recaptured power on Aug 15, 2021.
    • Outcome: Ashraf Ghani fled; Afghan army collapsed.
    • Implication: Rise of an Islamist regime on India’s doorstep, with implications for security, terrorism, and regional stability.
  • II. Sri Lanka (July 2022)
    • Event: Worst economic crisis in decades (fuel, food, medicine shortages).
    • Trigger: Public anger at Rajapaksa family’s misgovernance and debt-driven projects.
    • Outcome: Massive protests → Presidential palace stormed → Rajapaksas fled.
    • Implication: Collapse of political order due to corruption and financial mismanagement.
  • III. Bangladesh (Aug 2024)
    • Event: Student protests against quota system in govt jobs grew into an anti-regime movement.
    • Trigger: Accusations of corruption, authoritarianism, and erosion of democracy under Sheikh Hasina.
    • Outcome: Violent protests; PM Hasina fled after 15 years in power; regime shaken.
    • Implication: Democratic deficit, youth unemployment, and misgovernance destabilised a relatively stable state.
  • IV. Nepal (Sept 2024)
    • Event: Govt ban on 26 social media platforms triggered anger.
    • Trigger: Youth-led anti-corruption protests escalated after minister’s vehicle hit a schoolgirl and PM Oli dismissed it as a “normal accident.”
    • Outcome: Violent protests, 19 deaths, PM Oli resigned, his house torched by protesters.
    • Implication: Fragile democratic institutions and growing frustration with corruption, nepotism, and elitism.
  • Patterns Across Neighbourhood

    • Youth Discontent: Unemployment, lack of dignity, and shrinking opportunities are central.
    • Corruption & Nepotism: Common denominator in Afghanistan (elite disconnect), Sri Lanka (family rule), Bangladesh (dynastic politics), and Nepal (elite capture).
    • Economic Mismanagement: Sri Lanka’s debt crisis, Bangladesh’s unemployment + inflation, Nepal’s dependence on remittances, Afghanistan’s economic collapse.
    • Weak Institutions: Power personalised in leaders/families, democracy fragile.
    • Protest as Catalyst: Social media + street mobilisations converting grievances into violent upheavals.

    Way Forward to India:

    • Adopt a People-Centric Neighbourhood Policy
      • Go beyond engaging only with ruling elites.
      • Expand outreach through scholarships, cultural exchanges, health diplomacy, education, and digital connectivity.
      • This builds long-term goodwill and cushions India against regime changes.
    • Strengthen Regional Economic Integration
      • Push for regional supply chains, cross-border trade, and energy connectivity through SAARC/BIMSTEC.
      • Offer crisis loans and concessional aid with transparency, avoiding China-style debt traps.
      • Support job-creation projects in neighbouring countries to ease youth unrest.
    • Create a Neighbourhood Crisis-Response Mechanism
      • Establish a South Asian Stability Fund for humanitarian relief during economic or political breakdowns.
      • Coordinate disaster management, food/fuel aid, and medical support quickly to stabilise unrest.
    • Balance China’s Influence with Sustainable Alternatives
      • Invest in infrastructure, digital projects, and energy grids across the neighbourhood.
      • Offer low-interest, non-exploitative financing unlike Chinese debt diplomacy.
      • Highlight India’s shared history and cultural proximity to build trust.
    • Support Democratic Institutions, Not Just Regimes
      • Encourage free press, independent judiciary, transparent elections in neighboring states.
      • Avoid perception of backing authoritarian or corrupt regimes.
      • Engage with civil society, opposition parties, and youth groups to strengthen India’s credibility.
    • Border & Security Management
      • Enhance border surveillance to manage refugee influx, radicalization, and cross-border terrorism.
      • Strengthen cooperation in counter-terrorism and intelligence sharing.
      • Use technology and joint patrols to prevent spillover of unrest.
    • Soft Power as Strategic Power
      • Leverage India’s strengths in Bollywood, yoga, Ayurveda, digital public infrastructure (UPI, Aadhaar model).
      • Promote India as a model of inclusive democracy in contrast to collapsing governance around.

    The crises in Afghanistan, Sri Lanka, Bangladesh, and Nepal are not isolated—they reflect a larger trend of governance failure, corruption, and disenfranchised youth in South Asia. For India, the message is clear: neighborhood first cannot just be rhetoric. A proactive, people-centric, stability-driven Neighborhood First 2.0 is the only way forward.