{"id":25520,"date":"2018-09-17T17:13:03","date_gmt":"2018-09-17T11:43:03","guid":{"rendered":"http:\/\/blog.forumias.com\/?p=25520"},"modified":"2018-09-17T17:13:03","modified_gmt":"2018-09-17T11:43:03","slug":"india-nepal-relation","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-nepal-relation\/","title":{"rendered":"India Nepal Relation"},"content":{"rendered":"<p><b>Context<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal and China finalized the protocol of their Transit and Transport deal.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal declined to attend BIMSTEC military exercise (MILEX 2018) hosted by India.<\/span><\/li>\n<\/ul>\n<p><b>Brief background of relationship<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India and Nepal share a very special relationship with each other. They share a common culture and terrain south of the Himalaya. Bound by languages and religions, marriage and mythology, the links of their civilizational contacts run through both the countries.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">At the people to people level, relations between India and Nepal are closer and more multifaceted than between India and any other country. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Republic of India and Nepal began their formal relationship with the <\/span><b>1950 Indo-Nepal treaty of Peace and Friendship. <\/b><span style=\"font-weight: 400;\">This treaty is the cornerstone of our current relation with Nepal.<\/span><\/li>\n<\/ul>\n<p><strong>Present phase of relationship<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Relation between India and Nepal was on a downward curve since 2015 when Nepal put out its draft constitution<\/span> <span style=\"font-weight: 400;\">and alleged economic blockade by India<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> With PM Oli back in power in 2018, the India\u2019s outreach to the new government in Nepal was quick \u2014 announcing new connectivity and development projects.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A series of bilateral visits have taken place by the Prime Ministers of both the countries.<\/span><\/li>\n<\/ul>\n<p><b>Developments in 2018<\/b><\/p>\n<p><b>High level political visits<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><b>Visit of PM Oli to India<\/b><span style=\"font-weight: 400;\">:(April,2018)<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> A 12-point joint statement was issued, highlighting the resolve to take the bilateral relation to newer heights on the basis of equality and mutual trust, avoiding key contentious issues between two countries.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">During the visit Nepal and India signed three new agreements<\/span><\/li>\n<\/ul>\n<ol>\n<li><span style=\"font-weight: 400;\"> A partnership in agriculture<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Plan for connectivity through Inland waterways<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Expanding linkages to connect Indian railway lines to Kathmandu<\/span><\/li>\n<\/ol>\n<p><b>2) \u00a0Visit of PM Modi to Nepal (<\/b><span style=\"font-weight: 400;\">May,2018<\/span><b>)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">PM Modi visited India within weeks of Nepalese Prime Minister K. P. Sharma Oli\u2019s visit to India.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It was decided that urgent attention will be paid to the problems of river training, inundation and flood control on the common border.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">PM Modi gave a new \u201c<\/span><b>5T\u201d <\/b><span style=\"font-weight: 400;\">(\u201c<\/span><b>Tradition\u201d, \u201cTrade\u201d, \u201cTourism\u201d, \u201cTechnology and Transport\u201d<\/b><span style=\"font-weight: 400;\">) formula for Indo-Nepal relation during this visit.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">3<\/span><span style=\"font-weight: 400;\">) <\/span><b>Visit of PM Modi for BIMSTEC Summit(<\/b><span style=\"font-weight: 400;\">August,2018<\/span><b>)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">PM Modi again visited Nepal to attend the 4th BIMSTEC summit.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">PM<\/span><span style=\"font-weight: 400;\"> of both the countries held a detailed review on all aspects of the bilateral relationship including ways to further deepen economic and trade ties.<\/span><\/li>\n<\/ul>\n<p><b>Significance of Nepal<\/b><\/p>\n<p><b>Strategic<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal\u2019s geographical location is unique such that it is a natural buffer between India and China<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Since Nepal is a landlocked country it greatly depends on India for its interaction with the outside world.<\/span><\/li>\n<\/ul>\n<p><b>Political<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal shares a special relationship with India historically.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India has a Treaty of peace and friendship with Nepal since 1950.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This treaty is instrumental for a close cooperation between the two countries.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India has always considered South Asia to be its sphere of influence.<\/span><\/li>\n<\/ul>\n<p><b>Economic<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India is Nepal\u2019s largest trade partner<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal is e<\/span><span style=\"font-weight: 400;\">ndowed with fast flowing rivers with huge hydroelectric potential. Nepal\u2019s installed hydel capacity is less than 700 MW while it sits on a hydel potential of over 80,000 MW.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal is part of many international projects like BBIN etc<\/span><\/li>\n<\/ul>\n<p><b>Cultural<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India and Nepal share a common culture and have a long history of people to people relationship.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepali and Indian people visit each other\u2019s country for religious pilgrimage. Pashupati and Janakpur are traditional centres in Nepal whereas Varanasi and the four Dhaams are important pilgrimage destination in India.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Buddhist network is interlinked &#8212; Lumbini is in Nepal, while Kushinagar, Gaya and Sarnath are in India.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It is said that India and Nepal have \u2018Roti-Beti ka Rishta\u2019 (ties of food and family).<\/span><\/li>\n<\/ul>\n<p><b>Areas of Cooperation<\/b><\/p>\n<ol>\n<li><b> \u00a0\u00a0\u00a0\u00a0<\/b><b>Trade and Economic<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India is Nepal\u2019s largest trade partner and the largest source of foreign investments, besides providing transit for almost the entire <\/span><span style=\"font-weight: 400;\">trade which Nepal has with other countries.<\/span><\/li>\n<\/ul>\n<ol start=\"2\">\n<li><b> \u00a0\u00a0\u00a0\u00a0Indian Investment in Nepal<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Indian firms are the leading investors in Nepal, accounting for about 40% of the total approved foreign direct investments.<\/span><\/li>\n<\/ul>\n<ol start=\"3\">\n<li><b> \u00a0\u00a0\u00a0\u00a0Water Resources and energy cooperation<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A three\u2013tier mechanism established in 2008, to discuss all bilateral issues relating to cooperation in water resources and hydropower.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal has many fast flowing rivers and its terrain makes it ideal for hydroelectric power generation. Nepal\u2019s installed capacity is less than 700 MW while it has a potential to generate over 80,000 MW.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A 900 megawatts hydropower project Arun III has been launched recently.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">An Agreement on <\/span><b>\u201cElectric Power Trade, Cross-border Transmission Interconnection and Grid Connectivity\u201d <\/b><span style=\"font-weight: 400;\">was signed between India and Nepal in 2014.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> A Joint Technical Team (JTT) has been formed for preparation of long-term integrated transmission plan covering projects up to 2035.<\/span><\/li>\n<\/ul>\n<ol start=\"4\">\n<li><b> \u00a0\u00a0\u00a0\u00a0Defense Cooperation<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Gorkha Regiments of the Indian Army are raised partly by recruitment from hill districts of Nepal.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Since 1950, India and Nepal have been awarding Army Chiefs of each other with the honorary rank of General.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Bilateral defense cooperation includes assistance to Nepal Army in its modernization through provision of equipment and training.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">About 250 training slots are provided every year for training of Nepal Army personnel in various Indian Army Training institutions.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India and Nepal conducted a joint military exercise, <\/span><b>Surya Kiran XIII<\/b><span style=\"font-weight: 400;\"> from May 30 to \u00a0June 12 in Uttarakhand this year.<\/span><\/li>\n<\/ul>\n<ol start=\"5\">\n<li><b> \u00a0\u00a0\u00a0\u00a0Infrastructure and connectivity<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India provides development assistance to Nepal, focusing on creation of infrastructure at the grass-root level.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Recently a MoU was signed on Raxaul-Kathmandu railway line. A Postal highway project is also being undertaken.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Both the countries are also focused on inland waterways connectivity.<\/span><\/li>\n<\/ul>\n<ol start=\"6\">\n<li><b> \u00a0\u00a0\u00a0\u00a0Culture and People to People cooperation<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Governments of India and Nepal have signed three sister-city agreements for twinning of <\/span><b>Kathmandu-Varanasi<\/b><span style=\"font-weight: 400;\">, <\/span><b>Lumbini-Bodhgaya<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Janakpur-Ayodhya.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Direct bus service between Janakpur and Ayodhya under <\/span><b>Ramayan Circuit<\/b><span style=\"font-weight: 400;\"> under <\/span><b>Swadesh Darshan Scheme<\/b><span style=\"font-weight: 400;\"> was launched.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Archaeological Survey of India (ASI) is involved in the renovation of the Pashupatinath Temple Complex in Kathmandu.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Nepal-Bharat Maitri Pashupati Dharmashala <\/b><span style=\"font-weight: 400;\">was inaugurated recently to meet the requirement of pilgrimage to Pashupatinath Temple.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal and India share Hindu and Buddhist heritage. Lumbini, the birth place of Lord Buddha is in Nepal while Bodh Gaya where he attained enlightenment is in India. Similarly the hindu pilgrimage places are also spread in both countries.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Historically Indian and Nepali people have shared family ties. In indian mythology Goddess Sita married Lord Ram. Indian and Nepali royal families too have matrimonial relations.<\/span><\/li>\n<\/ul>\n<p><b>Challenges<\/b><\/p>\n<ol>\n<li><b> \u00a0\u00a0\u00a0\u00a0<\/b><b>Border issues<\/b><span style=\"font-weight: 400;\">:<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal and India must resolve contentious issues relating to the border, including the two major areas of dispute at <\/span><b>Susta<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Kalapani <\/b><span style=\"font-weight: 400;\">(India<\/span><b>&#8211;<\/b><span style=\"font-weight: 400;\">China-Nepal tri-junction).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Countries agreed to start talks at the foreign secretary-level in order to resolve the problem however, only a single talk has taken place in 2015.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is a need for construction, restoration, and repair of boundary pillars, and the clearance of no man\u2019s land on both sides.<\/span><\/li>\n<\/ul>\n<ol start=\"2\">\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0<\/span><b>Internal Security<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is an open border between India and Nepal which leads to illegal migration and human trafficking.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Indo Nepal border is used as launch pad by maoist, terrorist and drug traffickers. <\/span><\/li>\n<\/ul>\n<ol start=\"3\">\n<li><b> \u00a0\u00a0\u00a0\u00a0<\/b><b>Nepal\u2019s new constitution and its aftermath<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> A new constitution was promulgated in Nepal in 2015.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It gave extensive political privileges to the ruling hill tribes and discriminated against the people living in plains including Madhesis.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The constitution gave representation to Madhesis which was not in proportion to their population.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It also made obtaining citizenship by Madhesis very difficult and discriminating.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India has objected to these discriminatory provisions and requested Nepal to rectify them.<\/span><\/li>\n<\/ul>\n<ol start=\"4\">\n<li><b> \u00a0\u00a0\u00a0\u00a0<\/b><b>Big Brotherly attitude<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is a widespread perception in Nepal that India does not respect the country\u2019s sovereignty and that it often intervenes in Nepal\u2019s domestic affairs.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> India has been perceived to be playing a role of big brother in the region.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal accused India of imposing an economic blockade including blockade of gas supply, fuel etc on them to put pressure to make certain amendments in their constitution.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There was much outrage in Nepal of the way Indian media covered the 2015 Nepal Earthquake rescue and relief operations. Many Nepali trended hashtags like #gobackIndia on social media to express their outrage.<\/span><\/li>\n<\/ul>\n<ol start=\"5\">\n<li><b> \u00a0\u00a0\u00a0\u00a0<\/b><b>Trade<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal\u2019s trade deficit with India has surged in recent years with continuously rising imports and sluggish exports.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The current deficit in trade with India is 689.85 billion in Nepali Rupee. The country earned Rs 42.46 billion from its exports to India while paying the import bills worth Rs 732.31 billion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Indo-Nepal trade continues to remain massively in India&#8217;s favor<\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<ol start=\"6\">\n<li><b> \u00a0\u00a0\u00a0\u00a0<\/b><b>Peace and friendship treaty<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> The India-Nepal treaty of 1950 has been criticized by the Nepali political elite as an unequal one.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Treaty obliged Nepal to inform India and seek its consent for the purchases of military hardware from third countries. Nepal wants to change this provision.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The <\/span><b>Nepal-India Eminent Persons\u2019 Group (EPG)<\/b><span style=\"font-weight: 400;\"> is revisiting all bilateral agreements to submit a comprehensive report to both governments on how to reset bilateral relations.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">PM Modi has expressed his readiness to revise and update the 1950 treaty to bring in line with the changing times while keeping in mind the interest of both \u00a0countries.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ol start=\"7\">\n<li><b>\u00a0 \u00a0<\/b><b>Nepal\u2019s growing proximity to China<\/b><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-25524\" src=\"https:\/\/i0.wp.com\/blog.forumias.com\/wp-content\/uploads\/2018\/09\/Image-7.jpg?resize=632%2C407\" alt=\"\" width=\"632\" height=\"407\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/09\/Image-7.jpg?w=632&amp;ssl=1 632w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/09\/Image-7.jpg?resize=150%2C97&amp;ssl=1 150w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/09\/Image-7.jpg?resize=300%2C193&amp;ssl=1 300w\" sizes=\"auto, (max-width: 632px) 100vw, 632px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Nepal&#8217;s attempt to balance the overwhelming presence of India next door by reaching out to China is resented by India as such actions heighten India\u2019s security concerns.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Chinese are building a number of highways from the Tibetan side into Nepal, all the way down to East-West highway that traverses Nepal.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> China plans to extend the Tibet railway to Kathmandu across the border in the next few years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal signed the Belt and Road Initiative (BRI) Framework agreement with China last year.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">China is trying to contest Indian interests by cultivating local interest groups that could advance China&#8217;s interests in Nepal.<\/span><\/li>\n<\/ul>\n<p><b>8.\u00a0 \u00a0\u00a0<\/b><b>Demonetization: <\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Demonetization has badly affected Nepali nationals because those notes were legal tender in Nepal too.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal has time and again requested that the Indian government make arrangements for the exchange of those notes held by Nepali nationals and its central bank.<\/span><\/li>\n<\/ul>\n<p><b>\u00a0Recent developments<\/b><\/p>\n<p><b>China proposed 2+1 format for India talks:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This is different from a trilateral mechanism.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Under the Chinese proposal, China and India can jointly conduct a dialogue with a third regional country and can be applied to any other country in South Asia.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> India has been reluctant to directly take up any kind of trilateral cooperation in Nepal with China.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">PM Oli on his visit to China quoted <\/span><b>Panchsheel<\/b><span style=\"font-weight: 400;\"> \u2014 the five principles of peaceful coexistence as the template for an independent foreign policy that would include a simultaneous engagement of India and China<\/span><\/li>\n<\/ul>\n<p><b>Transit and Transport deal.<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal and China finalized the Protocol of <\/span><b>Transit and Transport deal. <\/b><span style=\"font-weight: 400;\">As per the agreement Nepal can access four ports and three dry ports paving way for the use of Chinese ports for trade.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This will reduce Nepal\u2019s dependency on India for its trade<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">One important impact of the Nepal-China Transit and Transport deal is that Nepal\u2019s access to Chinese ports will be through six <\/span><span style=\"font-weight: 400;\">checkpoints.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">These and other road and railway projects between China and Nepal will allow China to potentially project power against India on a different section of the Sino-Indian boundary.<\/span><\/li>\n<\/ul>\n<p><b>Boycott of BIMSTEC Military exercise<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nepal declined to participate in the first BIMSTEC military exercise MILEX-18 organized by India, but at the same time Nepal plans to participate in a joint military exercise with China.<\/span><\/li>\n<\/ul>\n<p><b>Why China cannot replace India vis-\u00e0-vis Nepal?<\/b><\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-25525\" src=\"https:\/\/i0.wp.com\/blog.forumias.com\/wp-content\/uploads\/2018\/09\/image-8.jpg?resize=519%2C479\" alt=\"\" width=\"519\" height=\"479\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/09\/image-8.jpg?w=519&amp;ssl=1 519w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/09\/image-8.jpg?resize=150%2C138&amp;ssl=1 150w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/09\/image-8.jpg?resize=300%2C277&amp;ssl=1 300w\" sizes=\"auto, (max-width: 519px) 100vw, 519px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India has an advantage of geography on its side.<\/span> <span style=\"font-weight: 400;\">Chinese rail and port connectivity projects are not very feasible owing to the difficult terrain.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The nearest Chinese ports will be over 3000 km away while Kolkata and Visakhapatnam ports which Nepal currently uses are relatively closer.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Funding is a major concern in Chinese infrastructure projects. Nepal is asking to build the Railway line as a grant but China is insisting on soft loan.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Nepal has signed BRI framework agreement with China last year, but Nepal is hesitant in choosing projects fearing debt trap.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"> \u00a0<\/span><b>Way forward<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> India must respect Nepal\u2019s sovereignty; mutual respect is a key in bilateral relations; and India should not meddle in the internal political affairs of Nepal<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Our engagement with Nepal tends to be episodic and crisis-driven, and not backed by the human and material resources that our neighbor deserves.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India should counter Chinese hard power by projecting soft power. In contrast to China\u2019s efforts to muscle its way into Nepal, India should emphasize on its historically close cultural, religious, and people-to-people relations with Nepal.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Context Nepal and China finalized the protocol of their Transit and Transport deal. Nepal declined to attend BIMSTEC military exercise (MILEX 2018) hosted by India. Brief background of relationship India and Nepal share a very special relationship with each other. They share a common culture and terrain south of the Himalaya. Bound by languages and&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/india-nepal-relation\/\">Continue reading <span class=\"screen-reader-text\">India Nepal Relation<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":25526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-25520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured-editorials","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/09\/17_04_2018-kpsharmaoli_and_modi.jpg?fit=1001%2C597&ssl=1","views":{"total":1258,"cached_at":""},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/25520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=25520"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/25520\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/25526"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=25520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=25520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=25520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}