Nepal has become the third country in India's immediate neighbourhood to see a violent uprising topple its government in recent years.
Prime Minister KP Sharma Oli resigned after more than 20 people died in clashes with police during anti-government demonstrations triggered by a social media ban.
A nationwide curfew is in place and the army is attempting to bring the situation under control after protesters stormed parliament and set fire to the homes of several politicians.
For many, the scenes in Kathmandu were reminiscent of the turmoil that gripped Bangladesh last year and Sri Lanka in 2022.
Though Bangladesh and Sri Lanka are also close neighbours to India, Delhi's relationship with Kathmandu is special due to historic people-to-people, economic and strategic ties.
Nepal shares a largely open border of more than 1,750km (466 miles) with five Indian states; Uttarakhand, Uttar Pradesh, Sikkim, Bihar, and West Bengal.
Delhi is keenly watching developments across the border, with Indian Prime Minister Narendra Modi swiftly reacting to the unfolding events.
The violence in Nepal is heart-rending. I am anguished that many young people have lost their lives, Modi wrote in a post on X on Tuesday.
Stressing that stability, peace and prosperity of Nepal are of utmost importance, he appealed to all my brothers and sisters in Nepal to support peace.
Modi also chaired an emergency security meeting with his cabinet colleagues on Tuesday to discuss the situation.
Much like it was caught off-guard by the uprising in Sri Lanka in 2022 that forced the then president Gotabaya Rajapaksa to flee the country, analysts say India was taken by surprise by developments in Nepal, with Oli resigning just a week ahead of a planned visit to Delhi.
Any instability in the country is a cause for concern for India because of Nepal's strategic location. The Western Theatre Command of China sits right across Nepal. The route to the Indo-Gangetic plains comes straight through Nepal, Maj Gen (Retd) Ashok Mehta, an expert on Nepal, told the BBC.
The unrest also has implications for the large Nepalese diaspora in India. An estimated 3.5 million Nepalis work or live in India, with some experts suggesting the actual number could be much higher.
Nepal is predominantly a Hindu-majority country and communities across the border have close family ties.
People travel between the two countries without a visa or passport. Nepalis can also work in India without restriction under a 1950 treaty - the only country along with Bhutan in the region to have this arrangement.
In addition, 32,000 famed Gurkha soldiers from Nepal serve in the Indian army under a decades-old special agreement.
Since the border is open, the communities enjoy a lived experience. Families on both sides interact on a daily basis, says Professor Sangeeta Thapliyal of Delhi's Jawaharlal Nehru University (JNU).
Nepal is also home to several important Hindu holy sites, including the Muktinath temple in the trans-Himalayan mountains, with thousands of Hindu pilgrims from India visiting every year.
Meanwhile, Kathmandu relies heavily on Indian exports, especially oil and food, with India-Nepal annual bilateral trade estimated at $8.5bn (£6.28bn).
While a fragile sense of calm returned to Kathmandu on Wednesday, experts say India will have to walk a diplomatic tightrope, as there’s widespread anger among Nepalese protesters against all three major political parties that have ruled the country.
India has maintained close contacts with these parties, which complicates its position amid the current turmoil. The competition for influence between India and China is intensifying as both nations vie for engagement with Nepal.
As the regional landscape changes, experts are urging India to proactively engage with young Nepalis by boosting opportunities and educational incentives, to strengthen long-standing ties and prevent descent into further instability.
The dynamic in the South Asian region is interconnected, with India's approach to Nepal needing to be carefully calibrated in light of the ongoing political challenges in neighboring Bangladesh, Pakistan, and Myanmar.
