Kailash creator text xu| 2000 continuing ng p.1-13 The geopolitical importance of the Himalayan Kingdom in the Himalayas has always been a challenge to the Indian policy makers to adjust their policy relationship with not only Nepal but China also. It became more important during a number of occasions like Chinese occupation over Tibet in early fifties and the aggression over Indian territory in 1962. So far as the bilateral relationship is concerned there has been a number of sweet and sour experiences during the last fifty years. India has always maintained the `special status' to Nepal. But it was the Monarchy at Kathmandu who, for his political survival, tried to follow the anti-Indian stands but collapsed ultimately in 1990. This proved to be a turning point in the bilateral understanding leading to the complete shift from geopolitical equation for `self defense' to geoeconomic cooperation for bilateral and regional peace and prosperity. It is hoped that the bilateral relationship will be more amicable in the new millennium. - Reproduced India - Foreign relations - Nepal International relations Indian Journal of Regional Science 180718