Amit Nayak asked: How can Nepal be so generous with China in recent times? Has anything gone wrong with India's Nepal policy?

Reply: Refer to an earlier reply by Jagannath P. Panda to a similar query, at http://idsa.in/askanexpert/Chinahasshownakeeninterest.

Also, refer to the following IDSA publications:

Rup Narayan Das, “Nepal’s ties with India, China. How Kathmandu is striking a fine balance”, The Tribune, March 12, 2012.
Nihar Nayak, “Nepal: Issues and Concerns in India-Nepal Relations” in India’s Neighbourhood: Challenges in the Next Two Decades, Pentagon Press, New Delhi, 2012.
Nihar Nayak, “Chinese PM in Nepal: A short visit but a long trail?”, January 18, 2012.
Satish Kumar, “China’s Expanding Footprint in Nepal: Threats to India”, Journal of Defence Studies, 5 (2), April 2011.
Pramod Jaiswal, “India-China Power Game in Nepal and the Consequences”, September 16, 2010.
Arvind Gupta, “India needs a new paradigm in its Nepal policy”, August 18, 2010.