India–Nepal relations go beyond a conventional neighbouring state relationship. Both countries share linguistic, ethnic, and religious beliefs. The border movements between these countries are less regulated and people have free access to both sides of the market. Despite free and open borders, and cultural, linguistic, and religious similarities, relations between India and Nepal have generally been strained. Since 2015, the relationship between India and Nepal has reached a new low. First, there was a blockade initiated by the Madhesi population of Nepal at the site of the border between the two countries, and then the Indian government’s demonetisation policy came, which has severely affected Nepal’s economy. After 2015, relations between these two countries have changed dramatically. Nepal has altered its long-standing trade relations with India and has gone about exploring options with China instead. This article discusses in detail India’s view on its neighbouring countries and the South Asian border relations. It also explores how Indian academic and diplomatic circles view the India–Nepal relationship in the light of China’s aggressive policy push in the South Asian region.