New and Raw: On Nepal–India Ties

UPSC Syllabus: Gs Paper 2- International Relation

Introduction

Recent visits by Nepal’s new political leadership to India have marked a fresh phase in India–Nepal relations. The outreach comes amid renewed discussions over boundary disputes involving Kalapani, Lipulekh and Limpiyadhura. While territorial issues continue to generate political sensitivities, both countries are simultaneously expanding cooperation in trade, connectivity, energy, development, technology and people-to-people exchanges. The developments reflect efforts to balance dispute management with broader bilateral engagement.

Recent Diplomatic Engagements between India–Nepal

1. Renewed Political Outreach: The visit of Foreign Minister Shisir Khanal followed the India visit of RSP President Rabi Lamichhane and came ahead of a proposed visit by Finance Minister Swarnim Wagle. These visits signalled active engagement between Nepal’s new leadership and India.
2. Building Momentum for Leadership-Level Contacts: The exchanges are being viewed as preparatory steps for a possible India visit by Prime Minister Balendra Shah. Both countries are using gradual engagement to strengthen political understanding.
3. High-Level Meetings in India: Lamichhane met Prime Minister Narendra Modi, Home Minister Amit Shah, External Affairs Minister S. Jaishankar and the National Security Adviser. These interactions reflected India’s willingness to engage Nepal’s new government.
4. Commitment to a New Partnership: Khanal stated that Nepal carries no old baggage against India and seeks a transformative relationship with its closest neighbour and most important partner.
5. Focus on Cooperation and Mutual Benefit: Jaishankar emphasised collaboration and cooperation, while both sides highlighted trust, goodwill and mutual benefit as the basis of bilateral relations.
6. Priority Given to Bilateral Relations: Nepal described India as its highest-priority relationship and expressed readiness for engagement at the highest political levels.
7. Support during Difficult Times: Nepal acknowledged India’s supply of fuel and fertilisers during the West Asia crisis, highlighting practical cooperation between the two countries.

Border Disputes and Territorial Claims

1. Recent Territorial Debate: Prime Minister Balendra Shah stated that India occupies some Nepalese territory while Nepal also controls some Indian territory. He said Nepal had raised the matter through diplomatic channels.
2. Areas under Dispute: Nepal continues to claim Kalapani, Lipulekh and Limpiyadhura. Some Nepalese leaders have stated that around 60,000 hectares of Nepalese land are under Indian occupation.
3. India’s Position on the Boundary: India maintains that nearly 98% of the India–Nepal boundary has already been demarcated and that only a few segments remain unresolved.
4. Lipulekh Pass Disagreement: Nepal objected to the use of Lipulekh Pass for the Kailash Mansarovar Yatra. India responded that the route has been in use since 1954 and has operated for decades.
5. Third-Party Involvement Issue: Nepal referred to discussions involving China and the United Kingdom regarding the dispute. India maintained that boundary issues are bilateral matters and do not require third-party involvement.
6. Preference for Peaceful Resolution: Nepal stated that boundary issues should be resolved through diplomacy, dialogue and a calm, data-driven approach.

Historical Background of the Boundary Issue

1. Origin in the Treaty of Sugauli: The dispute traces its roots to the Treaty of Sugauli (1816) under which Nepal ceded territories to the East India Company and surrendered future claims.
2. Pre-Treaty Developments: In 1815, British General Sir David Ochterlony removed Nepalese control from the Garhwal and Kumaon regions before the treaty was signed.
3. Absence of a Boundary Map: The Treaty of Sugauli did not include an official map. This later created differing interpretations of the boundary.
4. Competing Cartographic Claims: Nepal bases its claims on maps published in 1850 and 1856, while India relies on the 1879 map.
5. Revival of the Kalapani Issue: The Kalapani issue gained prominence after the restoration of democratic politics in Nepal following 1990.
6. Unresolved Survey Efforts: In 2000, the Prime Ministers of India and Nepal agreed to conduct a field survey and involve a Joint Boundary Committee, but the issue remained unresolved.
7. Recurring Episodes of Tension: Disagreements resurfaced in 2015, 2019, 2020 and 2023 through disputes over maps, Lipulekh Pass and territorial representations.

KeyPillars of Bilateral Cooperation between India and Nepal

1. Trade and Economic Partnership: India is Nepal’s largest trading partner and the largest source of Foreign Direct Investment (FDI). Recent discussions between the two countries also focused on strengthening trade and economic cooperation.
2. Connectivity and Transit Cooperation: As a landlocked country, Nepal depends on India for access to sea routes through transit arrangements. Cross-border rail links, Integrated Check Posts (ICPs) and the Motihari–Amlekhgunj petroleum pipeline have strengthened connectivity.
3. Energy and Hydropower Cooperation: The Long-Term Power Trade Agreement aims for India to import 10,000 MW of electricity from Nepal over 10 years. Hydropower development remains a major area of bilateral cooperation.
4. Development and Reconstruction Support: India handed over 72 health facilities and 12 cultural heritage projects under the post-2015 earthquake reconstruction programme.
5. Digital and Technology Cooperation: The two countries launched cooperation between Digital India Bhashini and Kathmandu University for a Voice First language translation platform. Opportunities in AI, information technology and startups were also identified.
6. Legal and Financial Cooperation: The operationalisation of cross-border remittances was announced. Progress was also made on the Mutual Legal Assistance Agreement in Criminal Matters (MLAA) to strengthen action against cross-border crimes.
7. Defence and Security Cooperation: India supports the modernisation of the Nepali Army through training and equipment assistance. The annual Surya Kiranexercise and recruitment of Nepali citizens into the Gorkha Regiments strengthen security ties.
8. Open Border and People-to-People Links: The open border supports deep social, cultural and family connections, often described as the “Roti-Beti” relationship. It also enables close interaction between the people of both countries.

Way Forward

1. Strengthen Bilateral Dialogue: Both countries should continue engagement through diplomatic channels and high-level visits. Regular dialogue can help sustain positive momentum.
2. Use Existing Boundary Mechanisms: Joint field survey teams and established border-management mechanisms should be used to address unresolved issues.
3. Promote Development-Oriented Partnership: Nepal seeks to transform traditional civilisational ties into a modern development partnership focused on economic progress.
4. Expand Cooperation in Emerging Sectors: New areas such as AI, startups, information technology and renewable energy offer opportunities for deeper cooperation.
5. Enhance People-Centric Initiatives: Cross-border remittances, educational partnerships, health projects and digital cooperation can directly benefit citizens.
6. Maintain Mutual Sensitivity: India and Nepal should act carefully in their words and actions. Respect for each other’s concerns can prevent the return of mistrust.
7. Leverage Regional Political Changes: Recent political changes in South Asia provide an opportunity to develop a more responsive and balanced framework of regional engagement.

Conclusion

India–Nepal relations are witnessing renewed political engagement alongside continuing boundary discussions. While disputes over Kalapani, Lipulekh and Limpiyadhura remain unresolved, both countries continue to expand cooperation in trade, connectivity, energy, technology and development. The relationship remains broad and strategically important for both sides. Sustained dialogue, effective use of bilateral mechanisms and a focus on shared development goals can help strengthen trust and build a stable and forward-looking partnership.

Question for practice:

Evaluate the recent developments in India–Nepal relations in the context of renewed diplomatic engagement, continuing boundary disputes, and expanding areas of bilateral cooperation.

Source: The Hindu