India-Nepal relations have touched a new low, with a new spat over territory. General Navarane has recently made an allusion that the new assertiveness by Nepal is due to China. Further, this comment has ignited anti-India sentiments in Nepal. India’s relations with Nepal go back deep in history. The India-nepal relations can be turned around if New Delhi stops looking at Nepal through the security prism and the bilateral realtions only as transactional.