India – Nepal Relations

India – Nepal Relations

India and Nepal share a unique relationship of friendship and cooperation as close neighbours characterized by open borders and deep-rooted people-to-people contacts of kinship and culture. Nepal shares a border with five Indian States – Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand.

Historical ties

Hinduism and Buddhism

• Nepal and India share a cultural history around the development of the two major religions of the world – Hinduism and Buddhism.
• Buddha was born in Lumbini located in present-day Nepal. Later Buddha came to India, where he got enlightenment. Later Buddhism spread to other parts of the World.
• Hinduism originated in India. Hinduism is a major religion in present-day Nepal.

‘Roti-Beti ka Rishta’

• People of both countries benefit from the open borders and unhindered movement across it.
• This helps the citizens of both countries in both livelihoods as well as to have strong people to people contact and close bonds through marriages and familial ties.

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India-Nepal Treaty of Peace and Friendship of 1950

• The special relations between the two nations date back to the India-Nepal Treaty of Peace and Friendship of 1950.
• It is a bilateral treaty establishing a close strategic relationship signed at Kathmandu.
• The treaty allows free movement of people and goods between the two nations and a close relationship and collaboration on matters of defence and foreign policy.
• The treaty talks about reciprocal treatment of Indian and Nepali citizens, establishes national treatment for both Indian and Nepalese businesses, and gives Nepal access to weaponry from India.
• The Treaty has enabled Nepal to overcome the disadvantages of being a land-locked country.

Economic Ties

Trade and businesses

• India is Nepal’s largest trade partner as well as the largest source of foreign investments.
• India also provides transit for almost the entire third-country trade of Nepal. Nepal uses Kolkata port for its sea trade.
• Indian companies also engage in various economic activities in Nepal. There is Indian presence in their manufacturing, power, tourism and service sector.

Development Aid and Assistance

• India gives financial and technical aid to Nepal’s developmental activities.
• The focus areas include grass-root infrastructure, health and education, water resources and rural development.

Connectivity

• The biggest disadvantages of Nepal are that it is landlocked and has difficult terrain. It is difficult for it to create connectivity towards the north (Tibet) due to the lofty Himalayas.
• In this context, India plays a crucial part, being the gateway of Nepal to the world with open borders and connectivity initiatives enhancing people-to-people contact and economic growth and development.
• Linking Sagarmatha and Sagar – developing inland waterways to enhance the movement of Cargo and provide access to the sea.
• Developing railway connectivity – to link Kathmandu and Raxaul (Bihar).

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Cultural ties

• Hinduism and Buddhism have served India’s soft power in Nepal. Lumbini is part of the Buddhist circuit being developed.
• India has sister city agreements with Nepal
  • Kathmandu-Varanasi
  • Lumbini-Bodhgaya
  • Janakpur-Ayodhya
• Apart from these initiatives promote people-to-people linkages in the area of art & culture, academics and media with different local bodies of Nepal.

Defence Ties

• India trains and equips the Nepalese Army and assist in its development in modern lines.
• According to the 1950 friendship treaty, Nepal can buy arms from India.
• The joint military exercise of India with Nepal is known as Surya Kiran.
• The Gorkha Regiments of the Indian Army are raised partly by recruitment from hill districts of Nepal.

Disaster Management

• Nepal is frequently prone to natural disasters such as earthquakes, landslides and avalanches, cloudbursts and flash floods. This is mainly due to geographical factors that Nepal lies in a fragile zone (Himalayas – suture line of Indo-Australian and Eurasian plates).
• India provides assistance both in terms of personnel aid, technical aid and humanitarian assistance in such instances.

Multilateral Ties

• India and Nepal share space on several 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) etc.

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Major Challenges in relations with Nepal

Trust deficit

• India’s reputation has been eroding over years as the implementation of various projects has been delayed and facing issues.

Political Instability

• Nepal has witnessed chronic political instability, including a 10-year violent insurgency, damaging Nepal’s development and economy.
• This has significantly affected its ties with India as the changing regimes flip-flopped between pro-India and pro-China stands.
• There was a brief economic blockade, during the Madhesi protest against the new constitution of Nepal in 2014, which led to

Playing Big Brother

• There is a perception that India is tinkering with the internal affairs and political sovereignty of Nepal. This has led to an anti-India feeling among certain ethnic groups in Nepal.

Internal Security

• The open borders with Nepal is also a matter of concern to the Indian security of India as it is exploited by terrorist outfits and insurgent groups from North Eastern part of India for infiltration of trained cadres, the supply of arms, and injecting fake Indian currency notes.

China Factor

• Chinese influence is growing in Nepal which has led to the erosion of Indian leverage.

Importance of Nepal and China Card

• Nepal is an important neighbour of India – both strategically and in international politics. It is a Himalayan nation and acts as a buffer state against China. Rivers originating in Nepal feed the perennial river systems of India – this ecologically important as well as there is huge hydro-power potential. Also, Hindu and Buddhist pilgrimage centres in Nepal is of religious and cultural importance to India.
• Nepal has had different Political regimes which were pro-India as well as pro-China. Also, China is now following an aggressively expansionary policy in its neighbourhood as well as in other parts of the World. China, with its Belt and Road Initiative and Maritime Silk Road is trying to dominate in the Asian region as well as create linkages to Europe, Africa and the Indo-Pacific. It is also using cheque-diplomacy and debt-trap as its instruments.
• Nepal is also a major part of China’s expansionary plans. Nepal is culturally and politically close to China as there are Buddhism and Communism in Nepal.
• Nepal is also looking for avenues as they have insecurity about having to depend on India always. Nepal also uses the China card to bargain with India. This was evident during the economic blockade as China and Nepal thought about building a trans-Himalayan railway as well as declared Xinjiang as an alternative port to Kolkata. The only huddle in China’s domination in Nepal in the Himalayas.
• China is also strategically taking steps to influence India’s neighbours by building ports and other critical infrastructure. China has a better reputation as they complete projects without delays and offer better deals and technology.
• Increasing Chinese influence in Nepal is not in India’s best interests. Nepal lies in a strategic location and can affect India’s security and other equations in the North-East. It can also influence India’s border issues with China.
• The other major issue is economical – Nepal is a major trading partner of India and home to many Indian businesses and an Indian labour destination. China can destroy these equations and cause predatory domination in the Nepalese economy.

The Way Forward for India

• Nepal is strategically and economically important for India. Hence, India should strengthen its ties with Nepal. Various issues should be sorted out amicably and the 1950 agreement should be renewed considering Nepalese interests. The open border should be managed so that it does not affect the safety and security of both nations.
• India should effectively use its soft power to enhance its cultural ties and people-to-people contact.
• India should commit itself to complete infrastructure projects without delay. There is huge untapped hydropower potential in the Himalayan river system originating in Nepal. India should focus on it too.
• Apart from this, India should evolve a narrative to change the perception of playing a Big brother and allay Nepal’s insecurities of its interfering with Nepal’s internal affairs.
• With a growing Chinese power, Nepal’s significance has only increased further. A stable and secure Nepal is necessary as it is of immense strategic and economic relevance for India’s security.

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