India Nepal Relations

The India-Nepal relations, established through the 1950 Treaty of Peace and Friendship, embody friendship and cooperation. The extensive border between the nations fosters a tradition of free movement, rooted in cultural and kinship ties known as Roti-Beti ka Rishta. The Bilateral cooperation between the countries spans across trade, investment, connectivity, defense, security, development assistance, energy, culture, and humanitarian aid. The Challenges include a trust deficit, calls for revising the 1950 Friendship Treaty, Nepal's increasing trade deficit with India, delays in hydropower projects, and border disputes. The growing anti-Indian sentiment in Nepal due to Chinese influence poses a challenge. India prioritises dialogue and cooperation to address these challenges and protect long-term interests. A diplomatic approach is crucial to strengthen their enduring bond.

The relations between India and Nepal are marked by friendship and cooperation, primarily established through the India-Nepal Treaty of Peace and Friendship in 1950. This treaty forms the foundation of the special bond shared between the two countries. According to the provisions of this treaty, Nepalese citizens enjoy facilities and opportunities equivalent to those of Indian citizens.

The extensive 1850 km border between Nepal and five Indian states—Sikkim, West Bengal, Bihar, Uttar Pradesh, and Uttarakhand—fosters a tradition of unhindered movement of people, rooted in deep-seated connections of kinship and culture, often referred to as the Roti-Beti ka Rishta. Both nations share common ties through Hinduism and Buddhism, with Lumbini, the birthplace of Buddha, located in present-day Nepal.

• Trade: India is the largest trading partner of Nepal with bilateral trade in 2021-22 crossing $11 Billion. And Nepal is India's second largest trading partner behind Bangladesh in South Asia.
• Investment: India is the largest source of investment into Nepal(32% of the total FDI).
• Connectivity: Emphasis is on development of Integrated Check Posts, BBIN Motor Vehicle Agreement (Bangladesh-Bhutan-India-Nepal) , Kathmandu-Raxaul Electric Rail agreement.
• Defence: Bilateral military exercises like Surya Kiran are conducted. Also, Gorkha Regiments of the Indian army recruits from Nepal.
• Security:India and Nepal cooperate to combat human, drug, and arms trafficking, as well as Left Wing Extremism
• Development Assistance:India gives it for infrastructure, water resources, education and rural & community development
• Energy: Immense hydroelectric potential of rivers like Kosi & Gandhak, Development Agreement for the Lower Arun Hydroelectric Project and Power Exchange Agreement since 1971.
• Culture: The 3 sister-city agreements are there for the twinning of Kathmandu-Varanasi, Lumbini-Bodhgaya and Janakpur-Ayodhya city.
• Humanitarian Assistance & Disaster Relief(HADR): Nepal is the biggest recipient of HADR Relief aid from India.
• Multilateral Partnership: India and Nepal collaborate in multilateral partnerships through forums like The South Asian Association for Regional Cooperation (SAARC), Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), BBIN etc

The PM of Nepal was on an official visit to India In June 2023. On this occasion, certain agreements were signed and projects inaugurated:

• Total seven agreements were signed on various sectors such as power, connectivity, etc.
• Power: Long-Term Power Trade Agreement for import of 10000 MW from Nepal
• Revised Treaty of Transit :It gives Nepal access to India's inland waterways.
• Hydropower Projects:
  • MoUs were signed for development of the Phukot Karnali Hydroelectric Project.
  • Both sides expressed commitment for time-bound implementation of the Pancheshwar multipurpose project which will enhance cooperation in harnessing the shared water resources of the Mahakali River.
• Connectivity: Groundbreaking ceremony for the Gorakhpur-Bhutwal Transmission Line was done besides inauguration of new Integrated Checkposts.

During Minister S. Jaishankar's visit to Nepal in January 2024, agreements were exchanged pertaining to the execution of High Impact Community Development Projects, Long-Term Power Trade, Collaboration in Renewable Energy Development, Munal Satellite, and the transfer of the 5th installment of post-Jajarkot earthquake relief supplies.

• Trust Deficit - Many in Nepal have long accused India of interfering in the country's internal affairs. Nepal claims that India initiated an unofficial blockade of 2015 in opposition to certain terms of Nepal's constitution, which has triggered a wave of anti-indian sentiment in Nepal
• Nepal has long held that 1950 Friendship Treaty needs to be "revised, redesigned or scrapped" as it is outdated, unequal
• Nepal's Trade deficit with India—its single largest trading partner— has been increasing at an alarming rate
• Delay in implementation of hydropower projects and power sharing agreements by India has caused Nepal to gravitate towards China
• Nepal also stopped recruitment of Gorkhas via Agniveer scheme
• Border issues and Map revision by Nepal has also irked India

• Anti-india constituency in Nepal has been growing for decades due to Chinese influence.
• China used its economic diplomacy to project itself as a non-interfering neighbour
• Hydropower sector: Even as India failed to deliver on its commitments in time, Chinese companies have made great strides in the last few years.
• MoU on Belt and Road Initiative (BRI) has been signed

• Of the total 1,800-km India-Nepal boundary, the region of Kalapani, Lipulekh, Limpiyadhura (in Uttarakhand) and Susta (in Bihar)are the only parts of Indo-Nepal boundary that remain unresolved
• The Sugauli Treaty signed between the British East India Company and Nepal in 1816, assigns all territories east of the Kali river to Nepal
• The dispute is mainly because of the varying interpretation of the origin of the river and its various tributaries that cut through the mountains.
• While Nepal's claim of the territory east of Kali is based on the Limpiyadhura origin, India says the river actually takes the name Kali near Kalapani
• The Lipulekh Pass serves an important vantage point for India to keep a track of China's movements
• India has reiterated its commitment to find a solution through dialogue in the spirit of its close and friendly bilateral relations.

India-Nepal has a long history of cultural connections. Nepal holds significance for both India's economic and strategic concerns. Maintaining a cordial and supportive relationship with Nepal serves as a protective barrier between India and an assertive China. To address boundary concerns, formal mechanisms are essential for India-Nepal relations. The Indian government should actively engage with Nepal's leadership, striving to enhance cooperation across various domains. Such collaborative efforts will contribute to the long-term interests of India