Table of contents |
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Historical Ties |
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Importance of Nepal |
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Areas of Cooperation |
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Challenges |
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Way Forward |
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Recent Developments |
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Treaty of Peace and Friendship of 1950
- The treaty talks about reciprocal treatment of Indian and Nepali citizens in the two countries, in residence, property, business and movement.
- It also establishes national treatment for both Indian and Nepalese businesses (ie once imported, foreign goods would be treated no differently than domestic goods).
- It also gives Nepal access to weaponry from India.
Boundary Talks Resumed: The India–Nepal Boundary Working Group met again after a gap of six years to work on joint surveys, restoring damaged boundary pillars, and resolving minor disputes along the open border.
Security Coordination: Both sides have agreed to increase joint patrolling to tackle cross-border crime, fake currency circulation, and illegal arms movement, especially in areas like Bihar–Terai and Uttar Pradesh–Terai borders.
Jaynagar–Bijalpura–Bardibas Railway: Passenger services are running on the Jaynagar–Kurtha section, with extension works towards Bijalpura and Bardibas progressing rapidly. This line will provide a smooth passenger and goods transport route between Bihar and Nepal’s eastern region.
New Rail Link from Sikkim: India is studying a new rail route from Melli in Sikkim to western Nepal (Dentam area) for faster cross-border connectivity.
Kathmandu–Raxaul Railway: Feasibility studies have been updated, and land acquisition talks are underway for India-funded construction.
Gorakhpur Link Expressway: Recently completed, improving road connectivity to Nepal through Sonauli, helping in tourism, trade, and cultural exchanges.
Gorakhpur–Siliguri Expressway: Construction in progress; this will cut travel time for cargo and improve Nepal’s access to India’s northeastern states.
Integrated Check Posts (ICPs): New ICPs in Bhairahawa (Siddharthanagar) and Nepalgunj are under development to speed up trade clearances.
Power Export to Bangladesh: Nepal has started selling 40 MW electricity to Bangladesh through India’s transmission network, marking a new trilateral cooperation in South Asia.
Long-term Power Trade Agreement: India and Nepal signed a deal for the exchange of 10,000+ MW of electricity over the next decade. This will be crucial for Nepal’s hydropower sector and India’s renewable energy goals.
New Transmission Lines: High-capacity 400 kV lines like the Butwal–Gorakhpur and New Duhabi–Purnea lines are being planned to allow large-scale electricity trade.
Revised Trade and Transit Treaty: The updated agreement allows Nepal to use India’s inland waterways (like the Ganga–Hooghly system) for transporting cargo to/from seaports, reducing transport costs.
Digital Trade Systems: India’s Unified Payments Interface (UPI) now fully operational in Nepal, enabling cross-border QR code payments for tourists, students, and businesses.
550+ Indian-funded Projects: These include roads, bridges, schools, hospitals, hydropower stations, and drinking water projects spread across all 7 provinces of Nepal.
Grassroots Support: The Small Development Projects (SDP) Scheme continues to support local community works in Nepal, including rural electrification, health centres, and skill development.
Tourism Boost: Direct flights between new city pairs like Varanasi–Janakpur and Delhi–Pokhara are being explored.
Sister-City Initiatives: Talks are ongoing for new sister-city pacts such as Patna–Biratnagar and Gorakhpur–Bhairahawa to strengthen historical and cultural links.
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