India and Nepal

India and Nepal have a close relationship of friendship and cooperation. Their relations are characterized by open borders, deep-rooted people-to-people contacts, and a connection of history, culture, tradition, and religion.
The India-Nepal Treaty of Peace and Friendship of 1950 is the foundation of their special relations. Their relations are multidimensional and pronounced more in political, social, cultural, religious, and economic engagements with each other.
- Hydropower electricity
- Connectivity
- People-to-people relations
- The Pancheshwar Multipurpose Project
- The West Seti Hydropower Project
Historical Ties:
- Shared civilizational heritage: Both countries share a rich and ancient Hindu and Buddhist heritage, with Lumbini, the birthplace of Buddha, situated in Nepal.
- Treaty of Peace and Friendship (1950): This treaty forms the bedrock of the relationship, establishing open borders, free movement of people, and close economic and security cooperation
- Border disputes have been a recurring issue, leading to tensions between India and Nepal. The Kalapani-Limpiyadhura-Lipulekh border area has been a particular point of contention, and differing interpretations of historical agreements have contributed to disagreements
- Changes in the political landscape of either country have sometimes influenced bilateral relations. Shifts in political power or changes in government priorities can impact the dynamics between India and Nepal
- Nationalist sentiments and concerns about sovereignty play a role in shaping perceptions and actions in both countries. Nationalistic rhetoric can influence public opinion and contribute to diplomatic challenges
- While economic cooperation is a significant aspect of Indo-Nepal relations, economic imbalances or perceived imbalances can lead to tensions. Discussions on trade, transit, and economic cooperation have been part of the bilateral agenda
- The nature of diplomatic engagements and the effectiveness of dialogues between the two nations also impact the overall relationship. Diplomatic efforts to address issues and build understanding are crucial during periods of strain
- Discussions about reviewing or updating existing agreements, including the 1950 Treaty of Peace and Friendship, have been part of the discourse. The desire for more balanced and contemporary agreements reflects the evolving nature of the relationship
- Despite diplomatic and political fluctuations, people-to-people relations and cultural ties continue to form a strong foundation. Shared traditions, familial connections, and cultural affinities persist
- Nepal’s engagement with China is seen by some as a diversification of its foreign policy and reducing dependency on any single country. Geopolitical considerations encourage nations to have balanced relations with multiple neighbors
- China has been involved in significant infrastructure projects in Nepal, including the construction of roads, bridges, and hydropower projects. The Belt and Road Initiative (BRI) has provided a framework for such projects, contributing to economic development in Nepal
- Nepal and China have focused on enhancing trade and economic cooperation. Bilateral agreements and discussions on trade routes and transit facilities have been part of the agenda, aiming to boost economic ties between the two countries
- Discussions about enhancing connectivity and transit routes through Tibet have been on the table. These initiatives are viewed as opportunities for Nepal to access Chinese ports and diversify its trade routes
- Security cooperation and discussions on issues related to border security and counter-terrorism have been part of the diplomatic dialogue between Nepal and China
- High-level diplomatic exchanges and visits between leaders of Nepal and China have been notable. Such interactions contribute to building mutual understanding and strengthening bilateral ties
- Cultural and educational exchanges between Nepal and China have expanded, fostering people-to-people relations and deepening cultural understanding
The prospect of a transit agreement between Nepal and China has been a topic of interest, particularly in the context of Nepal seeking to diversify its trade and transit routes. Nepal has historically relied heavily on India for transit and trade, and there has been an interest in expanding connectivity options, including exploring transit routes through China.
Key points related to the discussions between Nepal and China on transit and connectivity include:
- Nepal has expressed interest in diversifying its trade routes to reduce dependency on a single transit route. Exploring transit options through China has been part of this strategy
- Both countries have discussed and initiated projects aimed at enhancing connectivity, including road and railway projects that could potentially facilitate transit between Nepal and China
- The Belt and Road Initiative (BRI), introduced by China, has provided a framework for infrastructure development projects in various countries, including Nepal. Some of these projects aim to enhance connectivity and transit options
- The concept of trans-Himalayan connectivity has been discussed, envisioning improved road and rail links between Nepal and China through the Himalayan region
- Diplomatic engagements and discussions at various levels have taken place between Nepal and China to explore avenues for increased transit cooperation
- India raised concerns about the inclusion of various ethnic and minority groups in Nepal’s political structures. There were apprehensions that certain marginalized communities might feel excluded, leading to social and political unrest
- The new constitution of Nepal declared the country as a federal democratic republic, dividing it into seven provinces. India expressed concerns about the demarcation of boundaries and the implementation of federalism, emphasizing the need for a fair and inclusive distribution of resources and representation
- A significant concern for India was the rights and representation of the Madhesi community, which has cultural and familial ties with northern India. There were concerns that the new constitution did not adequately address the grievances of the Madhesi people, particularly regarding political representation and proportional inclusion
- In response to the perceived concerns about the rights of the Madhesi community, there was a period of strained relations between India and Nepal. This led to disruptions in cross-border trade and transit, impacting Nepal’s economy and causing economic hardships
- India consistently emphasized the importance of dialogue and engagement among all political stakeholders in Nepal to address concerns and foster a peaceful resolution. India called for an inclusive political process to address the grievances of various communities
- Nepal and India share several river basins, and water resources from these rivers are crucial for agriculture, energy production, and overall livelihoods in both countries
- Nepal has significant hydropower potential, and harnessing this potential has been a topic of cooperation and discussion between the two countries. India, as a neighboring country with growing energy needs, has expressed interest in collaborating with Nepal to develop hydropower projects
- Over the years, India and Nepal have signed various agreements and memoranda of understanding (MoUs) to enhance cooperation in water resources and hydropower development. These agreements outline frameworks for collaboration on the development of joint projects
- One notable project is the Pancheshwar Multipurpose Project, a joint venture between Nepal and India. This project envisions the construction of a dam on the Mahakali River, with the potential to generate hydropower and provide benefits such as irrigation and flood control
- Issues related to water-sharing for irrigation and addressing concerns about equitable distribution of water resources have been part of the discussions. Ensuring fair access to water for both countries is crucial for sustainable agricultural practices
- The development of hydropower projects often raises environmental concerns. Both countries need to consider the ecological impact of such projects, including potential effects on river ecosystems and downstream regions
- Despite the shared benefits, there have been challenges and occasional disputes between India and Nepal regarding water resources. Issues related to dam construction, water diversion, and concerns about the downstream impact have led to diplomatic discussions
- Hydropower cooperation also has implications for people-to-people relations. Transparency, dialogue, and addressing the concerns of local communities are essential for building trust and ensuring the success of collaborative projects
The Nepal-Bharat Maitri Project is a development partnership between Nepal and India. The project was launched in 2003 with the aim of promoting economic and social development in Nepal. The project has implemented a number of projects in various sectors, including education, health, infrastructure, and agriculture.
Some of the key projects implemented under the Nepal-Bharat Maitri Project include:
- The construction of schools and hospitals: The project has constructed and upgraded a number of schools and hospitals in Nepal. This has helped to improve access to education and healthcare for Nepalese people
- The construction of roads and bridges: The project has also constructed and upgraded a number of roads and bridges in Nepal. This has helped to improve connectivity and transportation in the country
- The development of irrigation systems: The project has also developed a number of irrigation systems in Nepal. This has helped to improve agricultural productivity in the country
The Nepal-Bharat Maitri Project has been a major contributor to the development of Nepal. The project has helped to improve the lives of Nepalese people in a number of ways. The project has also helped to strengthen the relationship between Nepal and India.
The following are some of the benefits of the Nepal-Bharat Maitri Project:
- Improved access to education and healthcare
- Improved connectivity and transportation
- Improved agricultural productivity
- Strengthened relationship between Nepal and India

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