Reasons for strained India-Nepal relations

Source: The post Reasons for strained India-Nepal relations has been created, based on the article “‘Big brother’ to ‘Brother’, a Nepal-India reset” published in “The Hindu” on 16th July 2024

UPSC Syllabus Topic: GS Paper2-International relations– India and its Neighborhood- Relations.

Context: The article discusses the strained relationship between India and Nepal, worsened by political and diplomatic tensions since 2015. It suggests opportunities for improvement with the leadership of Narendra Modi and Khadga Prasad Oli, focusing on mutual respect and non-interference for a stable partnership.

For detailed information on India-Nepal Relationship read Article 1, Article 2

What Led to the Strain Between India and Nepal?

1. Constitutional Dispute: In 2015, tensions escalated when Nepal adopted a new Constitution without the amendments India had suggested, leading to significant political discord between the two countries.
2. Economic Blockade: India imposed a nearly six-month-long economic blockade on Nepal, severely impacting Nepal’s economy and increasing resentment towards India.
3. Shift Towards China: In response to the blockade, Nepal’s then-Prime Minister Khadga Prasad Oli signed 10 significant agreements with China, diversifying Nepal’s economic and strategic alliances away from India.
4. Political Statements: The relationship faced further tension when Oli suggested that the historical city of Ayodhya was located within Nepal and criticized India’s national motto, proposing a change to reflect a more assertive stance.
5. Territorial Disputes: The relationship further deteriorated after India published a political map in 2019 that included territories claimed by Nepal, prompting Nepal to amend its Constitution to include these areas in its own map.

What Is the Economic and Social Impact?

1. Dependency on Remittances: Nepal is the seventh largest remittance-sending country to India, significantly supporting livelihoods in India’s economically weaker states like Uttar Pradesh, Bihar, and Odisha.
2. Trade Diversification: Following the blockade, Nepal signed 10 agreements with China, expanding trade and transit options, reducing dependence on India.
3. Hydropower Agreements: Recent power trade agreements favor India, limiting Nepal’s ability to export electricity generated with Chinese investments, impacting Nepal’s energy sector.
4. Political Instability: The imposition of India’s preferences in Nepali politics, as seen with leaders like Pushpa Kamal Dahal (‘Prachanda’), has led to political compliance at the cost of addressing key bilateral issues, affecting Nepal’s political autonomy and social dynamics.
5. Hindutva Influence: The presence of Hindutva advocates supported by India in Nepal’s plains and hills has stirred social tensions, affecting Nepal’s cultural and political landscape.

What should be done?

1. Respect for Sovereignty: Both nations should commit to non-interference in each other’s internal affairs, aligning with the principles of the Panchsheel doctrine.
2. Policy Corrections: India could revise its policies under Modi’s “Neighbourhood First” initiative, emphasizing mutual respect and economic cooperation rather than dominance.
3. Release of EPG Report: Implementing the recommendations of the India-Nepal Eminent Persons’ Group report could help establish a transparent and equal partnership.
4. Dialogue on Bilateral Issues: Engage in constructive dialogues to address and resolve standing issues, such as the territorial disputes involving the Limpiyadhura-Kalapani area and economic agreements.
5. Reviving Regional Cooperation: Nepal and India should work towards revitalizing the South Asian Association for Regional Cooperation (SAARC) as a platform to enhance regional integration and cooperation, which would benefit not just the two countries but the entire South Asian region.
6. Rebalancing Relations: The relationship dynamics should move away from perceptions of New Delhi being imperious and Kathmandu being subservient. Kathmandu needs to assert its voice more confidently, while New Delhi must reflect on and amend its approaches that have led to Nepali dissatisfaction.
7. Cordiality vs. Skepticism: Despite the default friendly disposition of Nepal towards India, New Delhi remains skeptical of Nepal’s intentions and alignments, particularly regarding Nepal’s interactions with other countries like China. India must address its skepticism towards Nepal’s intentions

Question for practice:

Examine the key factors that led to the strain in the relationship between India and Nepal and discuss the potential measures that could be taken to improve their bilateral relations.