Sansad TV: India-Nepal Relation | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

India and Nepal are close neighbours with a special bond of friendship and cooperation. They share an open border and have strong cultural and familial connections. Nepal shares a border of more than 1850 km with five Indian states: Sikkim, West Bengal, Bihar, Uttar Pradesh, and Uttarakhand. There has always been a tradition of free movement of people between the two countries. In recent years, there has been a renewed focus on enhancing bilateral relations through high-level political exchanges and meetings in various sectors. Prime Minister Narendra Modi visited Lumbini in Nepal, which was a short but significant visit. Nepal's Prime Minister, Sher Bahadur Deuba, also visited India in April this year.

India-Nepal Relations

• Trade and economy
  India is Nepal's largest trading partner and the primary source of foreign investments. Indian companies are involved in manufacturing, services (banking, insurance, dry port), power sector, and tourism industries in Nepal.
• Connectivity
  Nepal, being a landlocked country, is surrounded by India on three sides, with limited access to Tibet on the other side. Both countries have undertaken various connectivity initiatives to strengthen people-to-people linkages and promote economic growth. They have signed Memorandums of Understanding (MOUs) for laying an electric rail track connecting Kathmandu with Raxaul in India. India is also exploring the development of inland waterways for cargo movement, which would provide additional access to the sea for Nepal, connecting Sagarmatha (Mt. Everest) with Sagar (Indian Ocean).
• Development Assistance
  The Government of India provides development assistance to Nepal, with a focus on grassroots infrastructure. Assistance is provided in areas such as infrastructure, health, water resources, education, and rural and community development.
• Defence Cooperation
  Bilateral defence cooperation includes providing equipment and training assistance to the Nepalese Army. The Indian Army's Gorkha Regiments recruit soldiers from hill districts in Nepal. Joint military exercises called Surya Kiran have been conducted annually since 2011.
• Cultural
  Efforts have been made to promote people-to-people contacts in the fields of art, culture, academics, and media through collaborations with local bodies in Nepal. Three sister-city agreements have been signed to twin Kathmandu-Varanasi, Lumbini-Bodhgaya, and Janakpur-Ayodhya.
• Humanitarian Assistance
  Nepal is situated in a sensitive ecological zone prone to earthquakes and floods, leading to significant damage to life and property. As a result, Nepal receives substantial humanitarian assistance from India.
• Indian Community
  A large number of Indians, including businessmen, traders, doctors, engineers, and labourers (including seasonal/migratory workers in the construction sector), live in Nepal.
• Multilateral Partnership
  India and Nepal participate in various multilateral forums such as BBIN (Bangladesh, Bhutan, India, and Nepal), BIMSTEC (Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation), NAM, and SAARC (South Asian Association for Regional Cooperation).

Way forward

Border issue:
The two countries have resolved approximately 98% of their common border, with more than 8,500 boundary pillars reflecting the agreed alignment. However, there are still some areas where both countries have overlapping claims, and it is essential for them to engage in talks to address these issues.

Updating the 1950 Treaty of Peace and Friendship

India should acknowledge that Nepal's young population is seeking opportunities beyond the open Indian border. Nepal's aspiration to transform from a "landlocked" country to a "land-linked" country with a merchant navy should be considered positively. The relationship should be based on people-to-people interdependence, along with interactions at the civil society and business levels. India should focus on innovation and technology transfer, multidisciplinary dialogues, educational and technical institutions, and skills and capacity-building. Pending infrastructure projects, such as the Pancheswar project, should be completed on time. Nepal's expertise in climate change knowledge can contribute to India's ecological management of hills and mountains.
Effective delivery on pending projects, including the five railway connections, the postal road network in the Terai, and the petroleum pipeline, will enhance connectivity and bring the idea of "inclusive development and prosperity" to reality. The boundary dispute with Nepal should be resolved diplomatically, following international law on transboundary water disputes. India should maintain a policy of non-interference in Nepal's internal affairs while providing guidance towards a more inclusive democracy. A stable and secure Nepal is crucial for India's security concerns, making it necessary to formulate a comprehensive and long-term Nepal policy. India should shift its focus from a purely security-centric approach and move towards a multifaceted relationship that benefits both nations.