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"It makes more sense for Delhi and Beijing to work together -- whether it's a case of using Indian investment and Chinese turbines to build hydropower plants or transmitting electricity from Nepal to China via Calcutta or even installing a regional grid," Shakya said.
A focus on cooperation rather than competition would give a bigger boost to trade and enable greater regional growth, he said.
"Growth in India and China will benefit the whole region -- of course the smaller countries can play them off against each other, but given the size of both markets, it's smarter to exploit synergies between them.
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The change in India's leadership has opened a new window for regional engagement, Shakya said.
"The more India and China engage with neighbours, including each other, the better it is for regional connectivity. This is not a time for anyone to be myopic.
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" A vast network of fast-flowing rivers through the Himalayas leaves huge untapped hydropower resources at Nepal's disposal, and New D