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As BRICS marks over two decades since the acronym was coined in 2001, symbolizing the rise of emerging economies, the grouping stands at a pivotal juncture. What began as an economic forum among Brazil, Russia, India, China, and South Africa has evolved into a platform representing nearly half the world’s population and a quarter of global GDP. Now expanded to include Egypt, Ethiopia, Iran, the UAE, and others, BRICS embodies the aspirations of the Global South. 

In 2026, with India assuming the rotating presidency, this moment offers a transformative opportunity to elevate the voices of developing nations and deepen South-South cooperation. Drawing from its successful G20 presidency in 2023, India is poised to redefine BRICS under the theme ‘Building for Resilience, Innovation, Cooperation, and Sustainability’—a people-centric vision that prioritises humanity-first approaches to global challenges. 

India’s leadership comes amid a fragmented world order, in which Western-dominated institutions such as the UN Security Council and the World Trade Organization fail to reflect 21st-century realities. Prime Minister Narendra Modi has emphasised reforming these bodies to grant greater representation to the Global South, echoing calls for a multipolar world free from hegemonic influences. This presidency will amplify marginalized voices by focusing on inclusive multilateralism, ensuring that issues like climate finance, debt relief, and equitable trade are not sidelined. 

For instance, India plans to advance the Rio Declaration, adopted at Brazil’s 2025 summit, which strengthened Global South cooperation for sustainable governance. By hosting ministerial meetings across 28 Indian states and nine union territories, culminating in a Delhi summit, New Delhi aims to foster grassroots dialogue and make BRICS more accessible and representative. 

Central to India’s agenda is transforming South-South cooperation, which has often been hampered by fragmented efforts and external pressures. BRICS, under Indian stewardship, will prioritise practical collaborations in health, agriculture, disaster risk reduction, energy, and supply chains—areas where developing countries face acute vulnerabilities. 

Drawing from its own experiences with pandemics and climate disasters, India will push for resilient systems, such as shared vaccine manufacturing and agricultural tech transfers. This builds on the New Development Bank (NDB), established by BRICS in 2015, which India intends to bolster for funding sustainable infrastructure projects in the Global South. 

By emphasizing intra-BRICS trade—currently valued at around $300bn—India aims to reduce its dependence on Western markets, promoting local currencies for settlement to counter dollar dominance without provoking escalations. 

Innovation forms another cornerstone, with a focus on Digital Public Infrastructure (DPI) and AI governance. India’s UPI model, which revolutionized digital payments domestically, could be exported to BRICS partners, enabling seamless cross-border transactions and financial inclusion for millions in Africa and Latin America. This digital push will enhance South-South ties by creating interconnected ecosystems, from e-health platforms to smart agriculture tools, fostering knowledge exchange among nations often overlooked in global tech discourses. Climate change, an existential threat to the Global South, will see India advocating for capacity-building and green tech sharing, aligning with the 2025 Framework Declaration on Climate Finance.

These agendas add immense value to the BRICS countries’ relations by bridging internal divides. The recent expansion has introduced tensions—such as geopolitical frictions between Iran and the UAE or Russia's isolation amid the Ukraine conflict—but India’s neutral stance positions it as a mediator. By prioritising economic consolidation over divisive geopolitics, New Delhi can strengthen trust, as seen in its avoidance of anti-dollar initiatives like the proposed UNIT currency. 

Forums like the BRICS Business Council and civil society engagements will deepen people-to-people bonds, from joint research in quantum computing to cultural exchanges, enhancing mutual understanding among diverse members. 

Moreover, India’s presidency navigates external challenges, including US tariff threats over Iran trade and broader uncertainties under a second Trump administration. By balancing its US alliances with BRICS commitments, India exemplifies pragmatic diplomacy, ensuring the grouping remains a force for stability rather than confrontation. This approach adds relational value by positioning BRICS as a complementary alternative to Western-led orders rather than a rival.

In conclusion, India’s 2026 BRICS presidency is more than a rotational duty—it’s a catalyst for empowering the Global South. After two decades, BRICS has matured from an economic club to a voice for equity. Through focused agendas on resilience and innovation, India will fortify South-South cooperation, yielding tangible benefits like enhanced trade, shared technologies, and reformed global institutions. As the world grapples with division, this presidency could herald a more inclusive era in which the Global South not only speaks but also leads.

The author is a Special Advisor for South Asia at the Parley Policy Initiative. Views expressed are personal

As Prime Minister Balendra Shah convenes all foreign missions’ ambassadors together, it is rarely a routine diplomatic courtesy. It is a calibrated signal—one that communicates intent, direction, and, often, a subtle shift in strategy. Nepal’s recent decision to bring the diplomatic corps under one roof reflects precisely such a moment: a potential inflection point in how Kathmandu sees itself in a rapidly changing geopolitical landscape.

At one level, there were indications of a desire to project coherence. For a country whose foreign policy has often appeared reactive and fragmented, this is an attempt to align messaging, centralize authority, and move toward a more structured engagement with the world. But beyond signaling, the deeper question remains: what kind of foreign policy should Nepal pursue in an era of intensifying great power competition?

The answer lies not in traditional balancing alone, but in a strategic shift toward interest-driven economic diplomacy, anchored in sovereignty, stability, and long-term prosperity.

Beyond optics: Meaning of a diplomatic reset

The collective engagement with ambassadors reflects multiple layers of intent. It is, first, an assertion of political control over foreign policy—an area that has historically suffered from competing institutional voices and inconsistent signaling. Centralizing diplomatic messaging is not merely administrative; it is strategic. It reduces ambiguity and enhances credibility.

Second, the format itself carries geopolitical meaning. In a region defined by rivalry between India and China, alongside growing engagement from the US and the West, convening all ambassadors together sends a deliberate message: Nepal seeks engagement with all, alignment with none.

This is not non-alignment in its Cold War form, but rather “multi-vector autonomy”—a pragmatic approach that allows Nepal to engage multiple partners simultaneously while preserving strategic space.

Third, such a meeting is also about narrative control. By communicating directly with the diplomatic corps, the government aims to shape how Nepal is perceived externally: as stable, open for investment, and politically directed. In an era where perception influences capital flows as much as policy, this is no small consideration.

Structural challenge: Geography meets geopolitics

Nepal’s foreign policy cannot be understood without acknowledging its geography. Located between two rising powers, Nepal has long practiced a delicate balancing act. However, the strategic environment is changing.

China is no longer merely an economic partner; it is increasingly projecting systemic influence through infrastructure, connectivity, and institutional frameworks. India, meanwhile, is transitioning from a regional power to a global actor with heightened sensitivity to its neighborhood. The US and other external actors are also deepening engagement in South Asia, often through the lens of broader Indo-Pacific strategies.

In such a context, passive balancing is no longer sufficient. Nepal cannot afford to be a reactive player, adjusting its posture in response to external pressures. Instead, it must define its own priorities and align external engagements accordingly.

Reframing national interest: From survival to prosperity

Historically, Nepal’s foreign policy has been driven by a narrow definition of national interest—focused on sovereignty, territorial integrity, and regime stability. While these remain essential, they are no longer sufficient.

Today, national interest must be reframed to include: economic transformation; infrastructure development; energy security and export; employment generation; and technological integration. 

This requires a shift from political-security diplomacy to economic diplomacy as the central pillar of foreign policy.

Economic diplomacy as a strategic doctrine

Economic diplomacy is often discussed in Nepal but rarely operationalized. To move from rhetoric to reality, three structural shifts are necessary.

•  From aid dependence to investment partnership: Nepal must transition from being an aid-recipient mindset to an investment destination. This requires policy predictability, legal and regulatory stability, and transparent project pipelines. Rather than negotiating fragmented bilateral projects, Nepal should present integrated national development portfolios—hydropower, tourism, digital infrastructure—aligned with investor interests.

• Leveraging geography as an economic asset: Nepal’s location between India and China is often seen as a vulnerability. It should instead be leveraged as a connectivity advantage. This means developing cross-border infrastructure, positioning Nepal as a transit and logistics hub, and facilitating trilateral or multi-country economic initiatives where feasible. However, this must be pursued with caution and clarity, ensuring that connectivity does not translate into strategic dependency.

• Energy diplomacy as a game changer: Nepal’s hydropower potential remains its most underutilized strategic asset. A coherent foreign policy should prioritize long-term power trade agreements, regional grid integration, and investment frameworks for large-scale projects. Energy exports can transform Nepal’s economic trajectory—but only if backed by consistent diplomacy and domestic reform.

• Managing great power competition: In navigating external pressures, Nepal should adopt a set of clear principles: strategic equivalence, not strategic ambiguity. The country should engage all major powers transparently, without hidden alignments.

• Issue-based alignment: Nepal should cooperate with different partners on different sectors—security, infrastructure, climate—without allowing any single relationship to dominate.

• Institutional coherence: Foreign policy must be driven by institutions, not personalities. This requires strengthening the Ministry of Foreign Affairs and ensuring inter-agency coordination.

• Red lines on sovereignty: Economic engagement must not compromise political independence. All agreements should be evaluated through a long-term strategic lens.

Domestic imperative: Foreign policy begins at home

No foreign policy can succeed without domestic alignment. Nepal’s greatest diplomatic weakness has often been internal inconsistency. Frequent government changes, policy reversals, and bureaucratic inefficiencies undermine credibility.

To address this, Nepal must: build cross-party consensus on key foreign policy priorities; strengthen diplomatic capacity and expertise; and ensure policy continuity across political cycles.

Economic diplomacy, in particular, requires sustained engagement over the years, if not decades.

From symbolism to strategy

The convening of ambassadors is, in essence, a symbolic act—but symbolism matters in diplomacy. It signals intent, shapes perceptions, and sets expectations. However, symbolism without follow-through risks reinforcing skepticism.

For Nepal, the real challenge lies in translating this moment into a sustained strategic shift: From reactive to proactive diplomacy; from political signaling to economic outcomes; and from balancing pressures to shaping opportunities.

A window of opportunity

Nepal stands at a crossroads. The evolving geopolitical landscape presents both risks and opportunities. Managed poorly, it could lead to increased dependency and strategic vulnerability. Managed wisely, it could unlock unprecedented avenues for economic growth and global engagement.

The recent diplomatic outreach suggests an awareness of this moment. But awareness must be matched by action.

Nepal does not need to choose between India, China, or the US. It needs to choose itself—its interests, its priorities, and its future. It needs to be based on the realism of geography. 

In doing so, foreign policy must evolve from a strategy of survival to a strategy of prosperity.

Only then will Nepal truly move from being a space between powers to becoming a state that shapes its own strategic destiny.

The author is a retired Major General of Nepali Army and a strategic affairs analyst. He is also a researcher and is affiliated with Rangsit University in Thailand

There is a corner of Nepal where emotions are not hidden but sung, where culture is not displayed but deeply lived, and where every evening carries a quiet, almost sacred magic that gently touches the deepest parts of the human soul, and that place is Sudurpashchim. It is not a destination that demands attention through noise or spectacle. It does not compete with crowded cities or commercial attractions. Instead, it waits with a rare kind of patience, like a story that quietly longs for the right heart to listen.

When you finally arrive there, you begin to understand it slowly, almost unconsciously. As the sun slips behind the hills and the sky dissolves into shades of gold and blue, something extraordinary begins to unfold in the villages. People gather gradually, as if drawn by an invisible rhythm. A circle forms. Hands find each other. Feet begin to move in harmony with the earth. And then a voice rises, raw, unpolished, and profoundly human.

This is Deuda. More than a folk song, Deuda is the emotional language of Sudurpashchim, carrying within its verses stories that words alone could never fully express love that arrived too late, pain that remained unspoken, joy that overflowed, and memories that refuse to fade with time. There are no instruments, no stages, no artificial lights, only voices rising together beneath the vast open sky. The rhythm is simple yet deeply powerful, shaped by footsteps and unity. Within that simplicity lies extraordinary strength, because Deuda is not performed it is felt.

As you stand there witnessing it, something within you begins to shift. You start to connect. Even without understanding the language, emotion speaks clearly. A trembling voice can convey truths that polished words cannot. A shared rhythm can bring strangers closer. Before you realize it, you are no longer just an observer, you are part of that living moment. Perhaps that is where Sudurpashchim begins to transform you, because within that circle there is more than culture, there is connection, something the modern world quietly longs for.

This is why Deuda is no longer just a tradition, it has become a powerful bridge for tourism. It invites travelers not simply to see, but to belong. Village gatherings, festivals, and cultural evenings are not staged performances but authentic, living experiences that draw people in, encourage them to stay longer, and leave them wanting to return. Deuda empowers local communities, creates opportunities for artists and youth, preserves heritage, and transforms ordinary journeys into unforgettable memories.

Yet Sudurpashchim offers more than its songs. It leads visitors deeper into the life of the Rana Tharu community. Entering a village feels like stepping into a slower, more mindful rhythm of time. Mud houses adorned with intricate patterns stand not just as homes but as expressions of identity. Every design tells a story. Every detail carries meaning. There is a quiet dignity in their way of life, simple yet profound.

Above all, there is hospitality. Not the kind that is practiced, but the kind that flows naturally from the heart. Smiles reach beyond the lips into the eyes. Food is shared not as an obligation but as love. Conversations may seem simple but linger with unexpected depth. In a world that often feels rushed and distant, this warmth feels rare, almost sacred.

Festivals within the Rana Tharu community are more than celebrations; they are powerful expressions of unity and identity. Songs fill the air. Dances narrate history. Colors breathe life into every corner. Above all, there is pride, a deep, unwavering pride in their roots, their land, and their traditions. Their dances are not about perfection, but expression, remembrance, and honoring those who came before while preserving meaning for generations to come.

Like Deuda, the Rana Tharu way of life reflects what modern tourism seeks most: authenticity. Not something created, but something real. Their homes, food, and daily lives become living experiences that no city or hotel can ever replicate. Here lies the true strength of tourism in Sudurpashchim: community-based tourism, homestays, and cultural exchanges transform travel into something meaningful. Visitors do not simply pass through; they stay, share, and learn. Tourism does more than preserve culture; it creates livelihoods, strengthens local economies, and inspires younger generations to take pride in their identity.

Yet beneath this beauty lies a quieter story of struggle. Many young people leave in search of opportunities. Families celebrate festivals in absence, and still the culture endures. Deuda continues to be sung, festivals continue to be celebrated, and the spirit of the Rana Tharu remains strong. This resilience is what defines Sudurpashchim. Here, you do not find perfection, you find truth; you do not just see beauty, you feel it.

People do not remember places, they remember how those places made them feel. Sudurpashchim leaves behind something lasting: the echo of a song, the warmth of a smile, the quiet depth of human connection. But as more people discover it, the responsibility to protect it grows. Its authenticity must be preserved. Its traditions must be respected. Deuda must never be reduced to performance; it must remain a living expression. Rana Tharu culture must remain a way of life, not just a display. Once authenticity is lost, it cannot be recreated.

In this journey, local governments play a crucial role. These cultural treasures are symbols of identity and the very foundation of tourism in the region. Thoughtful policies, meaningful programs, and long-term commitment must ensure preservation and promotion. Cultural events, training initiatives, and community engagement connect younger generations to their roots, while supporting local artists with recognition, platforms, and opportunities to thrive.

Equally important is the integration of culture with the hospitality industry. Hotels, homestays, and tourism enterprises can offer Deuda performances, Rana Tharu cultural experiences, traditional cuisine, and immersive lifestyles, transforming a simple stay into something unforgettable. Collaboration between communities, businesses, and authorities can develop tourism in ways that are impactful, sustainable, and authentic.

If guided thoughtfully, nothing can hinder Sudurpashchim tourism. Its true strength lies not in infrastructure, but in its people, its culture, and its authenticity. When culture and hospitality come together, tourism becomes more than travel; it becomes a pathway to prosperity, identity, and sustainability. Sudurpashchim is not just a destination, it is a feeling, a memory waiting to be created, a heartbeat that continues to echo softly. If you listen closely, you will hear it calling you not just to visit, but to truly feel.

On March 5, the people of Nepal delivered a historic verdict that fundamentally reshaped the country’s political landscape. The Rastriya Swatantra Party (RSP), led by Rabi Lamichhane, secured a commanding supermajority, winning more than 5m proportional votes and 182 out of 275 seats in the House of Representatives. This 66 percent majority is more than a mere electoral landslide—it is a generational mandate for transparency, accountability, and accelerated economic progress. Under the Constitution of Nepal 2015, few mandates have been as decisive. The election results reflected a deep public desire to move beyond rhetoric toward a governance model defined by tangible outcomes. Citizens placed their confidence in a new generation of leaders who committed to building a ‘hardworking nation’. 

For Prime Minister Balendra Shah, this mandate provides both the legitimacy to lead boldly and the responsibility to implement reforms that reach every household. These insights may appear straightforward, yet they carry profound strategic significance for the nation.

A roadmap for reform

Within days of taking office, Prime Minister Shah introduced the ‘One Hundred Agendas for Governance Reform’, an ambitious framework structure around five strategic pillars:

• Governance and institutional integrity: Restructuring provincial council, anti-corruption, and digital governance
• Public service and accountability: Streamlining procurement and grievance handling,
• Economic transformation: Investment in energy, tourism, and trade
• Social development: Improvements in health, education, and agriculture
• Equity and social protection: Ensuring inclusion and a strengthened social safety net

At the absolute center of this agenda is fiscal federalism, the system governing how money is collected, shared, and spent across all tiers of government. Without a structural reform, the RSP’s broader agenda risks remaining aspirational rather than actionable. The ongoing debate over provincial councils has revealed itself to be both inefficient and unnecessarily costly. A more effective alternative would be to empower mayors, rural municipality chairs, and ward chairs to elect one provincial lawmaker from each district in respective province, thereby creating a streamlined body of 77 representatives. This approach would not only reduce electoral expenditures but also ease the administrative burdens, and enhance the efficacy of the provincial governments that plague the current council system. 

By adopting such a model, Nepal could establish an exemplary case of provincial council demonstrating that federal institutional reform can be both pragmatic and fiscally responsible.

The reality of fiscal imbalances

Data from the Financial Comptroller General Office highlights a widening gap between Nepal’s federal aspirations and its fiscal reality. In FY 2024/25, the federal government collected Rs 1.032trn in revenue, while provincial and local governments collected Rs 107.29bn and Rs 133.07bn, respectively. Although total revenue reached Rs 1.273trn, its distribution remains highly centralized. 

On the expenditure side, total spending reached Rs 1.844trn, with federal spending dominated by recurrent expenditure. Meanwhile provincial and local governments, the tiers closest to citizens, remain resource-constrained. This results two structural challenges:

• Vertical imbalance: The federal government dominates revenue collection, while provincial and local governments bear primary responsibility for service delivery. This mismatch forces provinces and local governments to rely heavily on federal fiscal transfers. Such dependency undermines autonomy and contradicts the principle of self-rule. Nepal has centralized fiscal power while decentralizing expenditure obligations, a paradox that weakens federalism.
• Horizontal imbalance: Significant disparities exist across provinces and municipalities. Wealthier federal policies benefit from larger populations, better infrastructure, and richer natural resources, while others lag behind. Over time, weak ‘own-source revenue’ generation has embedded a culture of dependency. Without corrective measures, fiscal federalism risks widening and deepening inequality rather than reducing it.

Unlocking new revenue sources

To break this fiscal dependency, the RSP government must promote scientific and sustainable use of natural resources to generate local wealth. This includes strengthening agricultural value chains, promoting non-timber forest products, tourism, entertainment, processing hub, digital center, and engaging in the global climate economy through initiatives such as biochar production and carbon markets. 

The federal government should also develop model revenue laws to support federal polity in exercising their constitutional taxation powers. These should cover agricultural income tax, property tax, vehicle tax, and land registration fees, etc. Standardization will reduce legal ambiguity and improve compliance. Additionally, local governments should establish dedicated revenue units, supported by modern IT infrastructures, to enhance financial management, tax administration, data generation and evaluation.

Expanding non-tax revenues and environmental levies

A sustainable fiscal architect cannot rely solely on taxation. Nepal must expand non-tax revenue from forests, water resources, minerals, and public enterprises dividends. The National Natural Resources and Fiscal Commission (NNRFC) should lead this effort through scientific and transparent resource-sharing frameworks. The introduction of environmental levies, such as carbon taxes, pollution charges and congestion fees, can align fiscal policy with environmental sustainability while generating additional revenue. 

Similarly, revenue from riverbed materials, such as sand, stones, boulders, pebbles, soils and minerals, etc., should be systematically integrated into local budgets. Categorizing these into short- and medium-term revenue streams will improve fiscal planning and service delivery.

Reforming intergovernmental transfers

Fiscal transfers are the lifeblood of federalism, ensuring that resources align with responsibilities. However, Nepal’s current system still reflects ‘unitary mindset’ within the bureaucracy in the Singhdurbar, where transfers are treated as discretionary support rather than constitutional entitlements. The NNRFC must be strengthened into a technically capacity, research-driven institution rather than a ‘bureaucratic parking spot’. This requires multidisciplinary expertise including economists, engineers, data analysts, geographers, regional planners, and social scientists to develop evidence-based allocation formulas. These formulas should consider population, geography, development indicators, human development and fiscal performance. Additionally, a Grievance Redressal Mechanism should be established to address intergovernmental fiscal disputes efficiently and transparently.

The path to effective governance

Nepal’s transition toward genuine federalism requires a shift from central patronage to federal polity empowerment. The 2026/27 budget must move beyond short-term transfers (grants) and enable federal polity to achieve fiscal sustainability. Fiscal federalism is not merely a technical reform; it is essential for translating public investment into tangible improvements in people’s lives. By prioritizing transparency, accountability and measurable outcomes, the RSP government can fulfill the promise of federalism.  

Nepal stands at a critical crossroads. The public has rejected the status quo and entrusted a new generation of leaders with a decisive mandate. They expect results, not rhetoric.  If fiscal federalism is reformed to be efficient, equitable, and citizen-focused, it can drive inclusive prosperity. If not, structural weaknesses will persist, and public trust will erode. Federalism was achieved through immense sacrifice. Allowing it to deteriorate into a mere bureaucratic formality would undermine that achievement. The RSP government must deliver tangible results ensuring that the progress is measured not in slogans, but in improved livelihoods and prosperity.