Early Relations and Treaty Signing
The India-Nepal relationship was fundamentally shaped by the Indo-Nepalese Treaty of Peace and Friendship, signed in 1950. This treaty was welcomed by the Rana rulers of Nepal, who, in the wake of India's independence, feared a potential communist uprising backed by China following the Chinese Communist Party's victory in 1949. However, just months after enacting this treaty, the Rana dynasty in Nepal faced internal unrest, ultimately falling to the Nepali Congress, a political party with pro-Indian leanings. This shift in power brought a sense of unease within Nepal regarding the expanding influence of India, particularly as the number of Indian nationals residing in Nepal's Terai region grew steadily during the 1960s.
The Nepalese Citizenship Act of 1952 significantly impacted this relationship, granting Indians the ability to immigrate and attain citizenship in Nepal with relative ease. This policy, however, led to growing resentment among the local population and continued until constitutional amendments in 1962 introduced more stringent requirements for Indian citizenship. Concurrently, the establishment of an Indian military mission in Nepal, which ultimately expanded to include hundreds of Indian personnel, further complicated perceptions of sovereignty within Nepal. As these developments unfolded, elements of Nepal's royal family began to express their dissatisfaction with India's influential role, leading to a strategic shift—Nepal initiated overtures to China to balance India's presence.
Trade Agreements and Political Shifts
Following the Indo-Nepalese Treaty, a Treaty of Trade and Commerce was ratified in October 1950, facilitating Nepal's ability to trade via Indian routes without incurring customs duties. This arrangement empowered Nepal economically but also deepened India's involvement in Nepal's domestic affairs. The dynamics of their relationship shifted significantly after the Sino-Indian War of 1962, which had profound repercussions for Nepal. The aftermath saw India withdrawing its support for Nepalese opposition forces, who had been pushing against King Mahendra's dissolution of a democratic government.
In an attempt to fortify its position, Nepal leveraged the situation to extract concessions from India, which, in a secret agreement in 1965, allowed India to maintain a monopoly on arms sales to Nepal. However, growing tensions resurfaced in 1969 as Nepal sought to review the mutual security agreement, calling for the withdrawal of Indian military personnel stationed in various regions. Although India complied somewhat by withdrawing troops from most areas, other tensions persisted, reflected in Nepal's overt discontent with the special relationship established by the 1950 treaty.
Escalating Tensions and Calls for Peace
The mid-1970s marked a turning point in Nepal-India relations, largely driven by Nepal’s demands for alterations to their trade and transit treaty and their public denunciation of India's annexation of nearby Sikkim in 1975. In response to rising concerns about India’s assertive posture, King Birendra proposed that Nepal be internationally recognized as a 'Zone of Peace.' This initiative, although warmly received by nations like Pakistan and China, was met with skepticism in India, which viewed it as potentially contradictory to agreements set forth in the 1950 treaty. To New Delhi, any perception of Nepal seeking to alter the special relationship could pose a security threat worth resisting.
In 1984, Nepal reiterated its appeal for the 'Zone of Peace' designation, but India remained unresponsive. Despite the lack of support from its southern neighbor, Nepal continued to champion this proposal internationally. By 1990, it gained favorable attention from 112 countries, including influential Western powers like the United States, the United Kingdom, and France. This growing international endorsement underscored Nepal’s desire for a more balanced relationship with its powerful neighbor while seeking to reinforce its sovereignty and independence in the geopolitical landscape of South Asia.
Evolving Dynamics of India-Nepal Relations (1970–1990)
From 1970 to 1990, the relations between India and Nepal underwent significant changes influenced by various political and economic factors. The turning point in this relationship came in 1978 when India agreed to the long-standing demand of the Nepalese government to separate trade and transit treaties. This move, however, was not entirely well-received in Nepal; the opposition parties in Nepal leveraged Indian soil to mobilize against the monarchy. Moreover, India's reluctance to officially endorse Nepal as a Zone of Peace, a concept aimed at demilitarizing the area, contributed to growing tensions.
By 1988, the expiration of the treaties led to a deadlock as Nepal resisted India's push for a single treaty that combined both trade and transit agreements, arguing that such a stipulation violated their “principle of freedom to trade.” This position stemmed from a broader assertion by Nepalese leaders reiterating the rights of landlocked countries under UN guidelines. Following two extensions of the treaties, their eventual expiration in March 1989 led to what many referred to as an "economic blockade." India tightened its grip by discontinuing preferential customs and transit duties and letting several key agreements relating to oil processing and warehousing expire, essentially crippling Nepal's economy, particularly when it came to essential goods like fuel and medicine.
The economic ramifications of this diplomatic crisis were severe. Historian Enayetur Rahim pointed out that Nepal’s GDP growth rate drastically fell from 9.7% in 1988 to a meager 1.5% in 1989, largely due to shortages of vital goods caused by high tariffs and closed border points. Furthermore, the situation was exacerbated when Nepal decided to decouple its national currency from the Indian rupee, a move that increased friction. In response, India retaliated by barring the use of its ports for transporting goods essential for Nepal, including oil supplies. This resulted in a humanitarian crisis as important commodities became scarce, pushing Nepal from a burgeoning economy into the ranks of the world's poorest nations.
The diplomatic spat drew attention beyond the economic dimensions; India was also concerned about Nepal's decision to impose work permits on Indian nationals and the Nepalese government’s attempts to procure Chinese weaponry. For India, security concerns were intertwined with economic relations, prompting a holistic review of their diplomatic ties. Ultimately, the isolation faced by Nepal led to a shift in its diplomatic strategy; it sought to present its case on trade and transit matters to the international community. When it became obvious that support from other countries was limited, Nepal's government began to recede from its inflexible stance to avoid exacerbating its economic plight. This change set the stage for a pro-India political shift, as opposition parties facilitated the establishment of a parliamentary democracy, effectively replacing autocratic rule. The resulting government was quick to seek reconciliation with India, marking a pivotal moment in the ongoing saga of India-Nepal relations.
In the 1990s, the relationship between India and Nepal experienced significant developments, particularly following a critical meeting in June 1990. During this meeting, Nepal's Prime Minister Krishna Prasad Bhatarai and Indian Prime Minister V.P. Singh managed to re-establish a special security relationship that had been strained by India's economic blockade of Nepal lasting 13 months. The blockade had severe ramifications for Nepal’s economy and contributed to widespread challenges facing the nation. The subsequent lifting of the blockade marked the beginning of a more cooperative phase, illustrated by the joint communiqué issued during their meeting, which laid the groundwork for a comprehensive arrangement covering vital aspects of bilateral relations, including trade and security.
The relationship deepened during Nepalese Prime Minister Girija Prasad Koirala's visit to India in December 1991, where several significant agreements were signed. These included new trade and transit treaties along with other economic accords aimed at enhancing Nepal's economic benefits. Recognizing Nepal's landlocked status, these agreements sought to facilitate smoother trade and transit, which were crucial for the economic viability of the nation. This period was characterized by a renewed commitment to collaborating on various economic fronts, with both countries acknowledging the importance of mutual support for regional stability and growth.
Amid these advancements, the relationship was not without its complexities. In April 1995, Nepal's Prime Minister Man Mohan Adhikary raised concerns regarding the long-standing 1950 peace and friendship treaty, expressing a desire for a thorough review. Adhikary highlighted worries about demographic changes in Nepal's Terai region, which he attributed to ongoing effects of the treaty. His visit marked an era of introspection as he sought to promote greater economic autonomy for Nepal while exploring the potential for improved ties with China. This maneuver reflected Nepal's strategic balancing act between its historical ties with India and a growing interest in engaging with other regional powers.
The communiqué from June 1990 further emphasized the mutual commitment to enhancing industrial development and managing shared water resources responsibly, aimed at promoting both economic growth and environmental stewardship. Recognition of each country's security concerns was an equally significant aspect, underscoring the importance of a stable and cooperative regional environment. As both nations sought to navigate the challenges of an interconnected world, the efforts made during the 1990s set crucial precedents for ongoing dialogues and negotiations in the years to follow, ensuring that the India-Nepal relationship remained dynamic and multifaceted.
2000s
In the mid-2000s, the political landscape in Nepal underwent significant changes, particularly following King Gyanendra's takeover in 2005, which led to a deterioration of relations with India. This shift was rooted in various political dynamics and events that challenged the historically friendly ties between the two nations. However, the restoration of democracy in Nepal in 2008 marked a pivotal moment in these relations. That year, Prime Minister Prachanda made headlines by visiting India in September after first traveling to China, thereby breaking the longstanding tradition of Nepalese leaders prioritizing India as their primary diplomatic destination. During this visit, Prachanda expressed optimism about a fresh start in bilateral relations, stating that he intended to return to Nepal with a message of hope and a commitment to enact radical changes in how the two countries interacted.
Amidst these diplomatic developments, an important internal issue in Nepal occurred with the passing of a controversial citizenship bill by the newly formed democratic parliament in 2006. This legislation provided citizenship to nearly four million stateless individuals residing in Nepal's Terai region based on naturalization provisions. While the Indian government viewed this reform positively, believing it would enhance stability and integration in the region, many Nepalese citizens voiced concerns. They feared that the new citizenship framework posed a potential threat to Nepal's sovereignty, echoing sentiments around national identity that had been at the forefront of the political discourse. This bill was particularly significant as it echoed a 2000 proposal that was rejected by King Birendra—an event steeped in tragedy, as it preceded the massacre of the royal family, an incident which drew solemn reactions from India at that time.
The year 2008 also saw a notable enhancement in Indo-Nepal ties through renewed discussions on water resources, following a four-year gap. A meeting of the Nepal-India Joint Committee on Water Resources led to the decision to address infrastructure issues such as the reconstruction of the breached Koshi embankment, an essential structure impacted by the changing climate and natural disasters. The interactions between the two Prime Ministers during Prachanda’s visit underscored their mutual commitment to strengthening the age-old bond between their countries. They released a 22-point joint statement that emphasized the necessity for a comprehensive review and update of the 1950 Treaty of Peace and Friendship along with other agreements.
Furthermore, the agreement included critical economic measures: India pledged to provide a substantial credit line of $15 million to help ensure adequate petroleum supplies to Nepal, while also suspending bans on key food exports. This financial support was aimed at bolstering Nepal's economy during challenging times. In a show of goodwill, India also committed to contributing $2 million for immediate flood relief efforts in Nepal. In reciprocation, Nepal promised to create a more business-friendly environment to encourage Indian investment, showcasing the reciprocal nature of their evolving relationship. These developments illustrated a complex interplay between domestic politics in Nepal and the broader context of bilateral relations with India, emphasizing the need for cooperation in a rapidly changing regional landscape.
India has maintained an influential relationship with Nepal, characterized by a mix of economic assistance and political diplomacy. In 2010, India took significant steps by extending a line of credit worth US$50 million and providing 80,000 tonnes of food grains to Nepal. This financial assistance came alongside the establishment of a three-tier mechanism at various governmental levels to bolster discussions on water resource development, highlighting India's commitment to collaborative growth. Indian External Affairs Minister Pranab Mukherjee's affirmation of support for peace and development during his meetings with Nepali Prime Minister Prachanda underscored India's intention to foster stability in its northern neighbor. Moreover, the Indian embassy in Kathmandu introduced an open house service in 2014 to address grievances of Indian nationals, illustrating a proactive approach to consular matters in Nepal.
Despite these efforts, the geopolitical landscape began to shift as the influence of Maoism gained momentum within Nepal while China’s economic and political presence expanded. This change has led to a gradual yet perceptible distancing of the Nepali government from India, even though Nepal continues to express its support for India in international forums like the United Nations. The diplomatic relationship seemed to take a positive turn when Indian Prime Minister Narendra Modi visited Nepal in August 2014, marking the first visit by an Indian prime minister in 17 years. During this visit, arrangements were made to provide Nepal with US$1 billion in concessional credit for development projects. Modi’s emphasis on viewing the open border as a bridge rather than a barrier was significant in addressing concerns about the influx of Indian immigrants in Nepal, reaffirming India's respect for Nepal's sovereignty.
In furtherance of their economic ties, a notable agreement was signed on November 25, 2014, wherein India committed to constructing a 900 MW hydropower project at an investment of US$1 billion. Subsequent agreements in February 2016 saw India allocate US$250 million for Nepal's post-earthquake reconstruction efforts, underscoring the ongoing commitment to aid in Nepal's development needs. However, cultural and historical issues, such as the birthplace of Gautama Buddha, have increasingly surfaced in political discourse between the two nations, particularly following a deterioration in relations.
A prominent example of this tension emerged during the International Buddhist Conference held in Kathmandu in May 2016. The event was intended to commemorate the 2,560th anniversary of Buddha’s birth but became a focal point for disputes over Lumbini, the site identified as Buddha's birthplace, which lies in modern-day Nepal. Nepal’s decision to rebrand the conference theme to highlight Lumbini's significance led to India's boycott, which added a layer of complexity to the already strained relations. Nepali Prime Minister K.P. Oli's insistence on clarifying to the global community that Buddha was indeed born in Nepal further inflamed tensions, demonstrating how historical claims can have profound implications on contemporary diplomacy.
The relationship witnessed a sharp turn in early 2017 when protests erupted in Kathmandu following the fatal shooting of a Nepali citizen amid demonstrations against perceived Indian encroachment on disputed territories. The incident, where Indian forces allegedly intervened to prevent Nepalese farmers from constructing infrastructure in the contested area, sparked widespread outrage. Such events highlight how historical grievances and territorial disputes can reignite tensions, ultimately complicating India's efforts to maintain a robust partnership with Nepal amid changing political dynamics in the region.
The 1950 Treaty
The 1950 Treaty and accompanying letters exchanged between the Indian government and the Rana rulers of Nepal laid the groundwork for a unique bilateral relationship. This treaty articulated mutual obligations, ensuring that neither government would tolerate threats to the other's security from foreign aggressors. It also emphasized the importance of communication, mandating that both parties inform each other about significant frictions or misunderstandings with neighboring states, which could potentially jeopardize their friendly relations. The significance of these accords cannot be overstated; they built a foundation for a "special relationship" that shaped the political and social dynamics between India and Nepal.
Economic and Social Interactions
One of the critical aspects of the Treaty was the provision that granted Nepalese citizens the same economic and educational opportunities in India as enjoyed by Indian citizens. This open border policy allowed for unhindered movement of citizens between both countries, facilitating a free exchange of culture, ideas, and labor. Nepali and Indian nationals can traverse the Indo-Nepal border without the bureaucratic burdens of passports or visas, fostering an environment of camaraderie. However, the treaty also includes certain restrictions, such as limiting Indians' ability to own land in Nepal and certain government employment opportunities, while allowing some Nepali citizens access to specific Indian government positions, notably in the military. This intricate arrangement highlights the complexities of cross-border employment and citizenship issues in the region.
Changing Demographics and Political Implications
The demographic landscape has seen considerable migration, with the Election Commission of Nepal recording approximately 562,456 Nepali citizens residing in India eligible to vote in the 2022 federal elections. Conversely, the Indian embassy in Nepal estimated a population of around 600,000 Indian citizens living in Nepal, though many may not have registered properly. These figures underscore the vibrant and dynamic nature of Indo-Nepal migration patterns, reflecting economic opportunities and familial ties that cross the border. Such statistics are significant as they not only represent the democratic engagement of the Nepali diaspora in India but also highlight the social integration of Indian immigrants in Nepal.
Revisions to the 1950 Treaty
Over the years, there has been a growing sentiment within the Nepalese government regarding the need to revise the 1950 Treaty to align with contemporary political realities. In 2014, an agreement was reached to revisit and amend the treaty, but specific modalities surrounding this adjustment remain unclear. The Nepalese side submitted a report from the Eminent Persons Group (EPG) to the Prime Minister of Nepal, seeking to initiate these discussions. However, the Indian foreign ministry has yet to make any announcements regarding whether a similar report has been communicated to the Indian Prime Minister. This mutual uncertainty points to a broader dialogue that is ongoing and reflects the delicate balance of diplomatic relations between these two neighboring countries.
Conclusion
Overall, the India-Nepal relationship, deeply rooted in historical treaties and mutual interests, continues to evolve. The foundational 1950 Treaty serves to guide interactions, though emerging concerns and demographic changes necessitate ongoing dialogue and potential adjustments. As both nations navigate their shared history and strive for beneficial engagements, the path ahead will likely involve negotiations that respect the sovereignty and aspirations of each country while nurturing the long-standing ties that bind them together.
Infrastructural and Financial Support
Since the early 1950s, India has played a pivotal role in contributing to the socioeconomic development of Nepal. This partnership encompasses a broad spectrum of areas including critical social sectors like health, education, and human resource development, as well as vital infrastructure projects such as airports, irrigation systems, agricultural support, roads, bridges, power projects, industrial estates, communication networks, surveying, forestry management, and various construction initiatives. This wide-ranging assistance reflects India's commitment to strengthening its relationship with Nepal and supporting its neigbor's developmental aspirations.
The collaborative journey between Nepal and India commenced in 1951, marking a significant milestone with the development of modern infrastructure in Nepal. As Nepal's principal development partner, India undertook the construction of Kathmandu’s Gauchar Airport, later known as Tribhuvan International Airport, which was completed in 1954. This same year also saw the establishment of the Indian Aid Mission in Nepal, which aimed to facilitate projects across diverse sectors including health, connectivity, education, power supply, and various government departments. This partnership laid the groundwork for many significant developments in Nepal’s journey towards modernity.
Over the years, India’s support for Nepal has included numerous significant projects. In 1976, a notable collaboration resulted in the construction of the 21 MW Trishuli Hydropower Station, financed through a grant of Rs 140 million. More recently, in 2014, India inaugurated the Nepal Bharat Maitri Emergency & Trauma Centre in Kathmandu at a cost of Rs 100 crore, alongside a new college block for the B.P. Koirala Institute of Health Sciences in Dharan, which cost Rs 125 crore. These initiatives not only contribute to immediate healthcare improvements but also enhance the educational landscape of the region. The installation of the Motihari-Amlekhgunj Petroleum Pipeline in 2019, costing Rs 324 crore, further emphasized the bilateral commitment to infrastructure development and energy security.
The strong bilateral cooperation was showcased extensively following the April 2015 earthquake that devastated parts of Nepal. The Government of India committed US$1 billion for post-earthquake reconstruction projects, aimed at revitalizing the affected regions. By November 2021, significant progress was made with the completion of 50,000 houses at a cost of US$100 million. Further initiatives included the construction of 132 health facilities across ten districts, the reconstruction of 71 educational institutions in eight districts, and ongoing restoration of 28 cultural heritage sites across seven districts. Such projects not only assist in physical reconstruction but also serve to strengthen community resilience and cultural identity.
Additionally, during the global coronavirus pandemic, India once again showcased its commitment to Nepal by sending 1 million doses of vaccines to the country shortly after the vaccine roll-out in India. Under the Vaccine Maitri initiative, India provided an impressive total of nearly 9.5 million vaccine doses to Nepal, reflecting solidarity and support in times of crisis. These efforts represent a broader framework of cooperation and humanitarian assistance that defines the India-Nepal relationship, underscoring the depth of their partnership in addressing both immediate challenges and long-term developmental goals.
Military Cooperation Between India and Nepal
India and Nepal share a robust history of military cooperation that dates back several decades. Since the signing of the Treaty of Peace and Friendship in 1950, both nations have engaged in an esteemed tradition of awarding the honorary rank of General to each other’s Army Chiefs. This gesture symbolizes the mutual respect and camaraderie that underpins the military relations between these two neighboring countries.
India has played a pivotal role in modernizing the Nepali Army (NA) by providing necessary training and equipment. These resources are vital for enhancing the capabilities of the Nepali military, especially in the context of regional security challenges. Furthermore, India's defense cooperation with Nepal transcends mere military training; it includes comprehensive support mechanisms during natural disasters, which are a recurring challenge in the Himalayan region. Joint military exercises and adventure training programs bolster the operational synergies between the two armed forces, enhancing cooperation and interoperability.
In addition to training and disaster assistance, high-level bilateral visits between military leaders of both nations reinforce their strategic partnership. These visits often facilitate discussions on pertinent security issues, fostering a deeper understanding of regional dynamics. Many personnel from the Nepal Army take part in various training courses offered at Indian defense institutions, helping to standardize procedures and enhance skill sets within the Nepali military.
Moreover, the Indian Army's Gorkha battalions have a significant recruitment component from the Nepalese hill districts, reflecting the deep-seated historical ties between the Gorkha community and the Indian Army. Currently, around 32,000 Gorkha soldiers serve in the Indian Army, showcasing the integral role that Nepali citizens play in India's defense forces. This recruiting practice not only strengthens military ties but also serves to blend cultural heritages, given the shared history and traditions of the Gorkhas in both nations. In conclusion, the military relationship between India and Nepal is multifaceted, characterized by collaboration, mutual respect, and a shared commitment to maintaining stability in the region.
Border Disputes and Territorial Claims
India and Nepal have been embroiled in territorial disputes that have historical roots and contemporary implications. The key areas of contention are Kalapani and Susta, spanning approximately 400 square kilometers and 140 square kilometers respectively. These disputes trace back to differing interpretations of the Sugauli Treaty signed on March 4, 1816, which established the Kali river as the western boundary of Nepal. Nepal insists that the river flowing west of Kalapani is the main Kali river and thus, the region should belong to it. Conversely, India rejects this assertion, claiming that the river in question is not the main Kali river, leading to significant tensions. A notable turning point occurred in 2018, when the Indian government led by Prime Minister Narendra Modi modified the official Indian map, removing the full delineation of the Kali river for the first time, an act seen as a significant alteration in the status quo.
The rooted territorial disputes date back even further, with the first signs of disagreement emerging as early as 1997, coinciding with discussions within the Nepalese parliament concerning hydroelectric development treaties on the river. The disagreement centers on the location of the river's source, with both nations producing maps to buttress their claims. Notably, Nepal has referenced an 1856 map from the British India Office as part of its argument. The complexities increase when considering that Kalapani has been under the control of India's Indo-Tibetan Border Police since the Sino-Indian War of 1962. This history has only added layers of complexity to an already intricate dispute. In 2015, tensions flared again when Nepal protested against an agreement between India and China that permitted trade via the Lipulekh Pass, a route located in the contentious Kalapani region, further challenging Nepal's assertion of sovereignty over the territory.
Efforts Toward Demarcation
In light of these disputes, both nations have engaged in various efforts to address and demarcate the Indo-Nepal border. As a preliminary step, survey teams were dispatched to identify and resolve missing boundary pillars along their shared 1,770-kilometer border. According to estimates by the Nepalese government, a significant number of the 8,000 boundary pillars require attention, including over 1,240 missing pillars, 2,500 in need of restoration, and additional construction of at least 400 pillars. The Joint Technical Level Nepal-India Boundary Committee (JTLNIBC), established in 1981, has made considerable progress by delineating 98% of the boundary, barring the disputed areas of Kalapani and Susta. Despite their productive collaboration, the committee's efforts faltered as both nations failed to ratify the delineated maps submitted in 2007. Nepal has insisted that it cannot ratify these maps without resolving the outstanding boundary disputes, while India has simultaneously urged Nepal to endorse them as a confidence-building measure, thus stalling a complete demarcation of the border.
Recent Developments and Strained Relations
The relations between India and Nepal notably escalated in 2020, when India inaugurated an 80-kilometer road connecting the Lipulekh pass to Dharchula in Uttarakhand. The inauguration, led by India's Defence Minister Rajnath Singh on May 8, 2020, was met with a strong reaction from Nepal, which asserted that the road traversed through Nepalese territory. India, however, maintained its stance that the road lay entirely within Indian borders. This incident not only showcased the fragility of the bilateral relationship but also had broader implications for regional dynamics, as nationalistic sentiments surged on both sides. It emphasized the need for diplomatic dialogue and resolution to avoid further escalation of tensions, particularly given the historical complexities of their shared borders. Moving forward, both countries must navigate these disputes carefully to foster a more stable and cooperative relationship, keeping regional security and mutual understanding at the forefront.
Border Crossings and Integrated Check Posts
The border between India and Nepal is characterized by multiple integrated check posts designed to facilitate smooth immigration and customs processes. Key crossings include locations such as Jogbani and Bhitthamore in Bihar, as well as Sonauli and Rupaidiha in Uttar Pradesh. These check posts play a crucial role in ensuring the efficient movement of people and goods between the two neighboring nations. Notably, the Taulihawa-Siddharthnagar crossing is reserved solely for Indian and Nepalese citizens, reflecting the close cultural and familial ties that bind the two countries.
Transportation Initiatives for Enhanced Connectivity
In a bid to bolster relations and improve connectivity, Nepal and India launched a trans-border bus service in 2014, facilitating travel between the capitals of New Delhi and Kathmandu. This initiative not only strengthens the transport link between the two nations but also provides a viable option for travelers seeking a direct route. Operated by the Delhi Bus Corporation along with private travel companies, the service offers several routes including connections from Kathmandu to Delhi, Siliguri, and Varanasi, as well as services from Delhi to Janakpur. These bus services play a vital role in enhancing people-to-people connections, fostering economic interactions, and promoting tourism between India and Nepal.
Religious Tourism and Cultural Exchange
In a significant move towards enhancing bilateral ties and promoting religious tourism, Indian Railways announced in February 2023 the introduction of the Bharat Gaurav Tourist Train. This train service will link two of the most revered pilgrimage sites, Ayodhya in India and Janakpur in Nepal. The initiative not only aims to facilitate easier access for devotees but also underscores the cultural and religious synergies shared by the two countries. By enhancing transportation options for pilgrims, this rail service is expected to boost tourism while fostering closer connections between the communities of both nations. This endeavor reflects a broader strategy to leverage cultural heritage as a means of strengthening diplomatic and economic relations between India and Nepal.
Trade Relations
India has established itself as Nepal's largest trade partner, significantly influencing the economic landscape of the country. A notable aspect of this relationship is the Indo-Nepal Transit Treaty, which allows Nepal to utilize India as a transit route for nearly all of its third-country trade. This agreement plays a crucial role in facilitating trade, enabling Nepal to access global markets efficiently. While India remains the dominant player in Nepal’s trade scenario, it is important to note that China has emerged as the largest source of Foreign Direct Investment (FDI) in Nepal since 2015. Nevertheless, India continues to account for an impressive two-thirds of Nepal's merchandise trade, a third of trade in services, and approximately 30% of FDI into Nepal.
The economic interdependency between the two nations is further underscored by the significant flow of remittances from Nepalese citizens working in India. Annual remittances amount to around $1.2 billion, highlighting the importance of India as a destination for Nepalese labor and a source of economic support for many families back home. Additionally, as Nepal's 9th largest trading partner, it is noteworthy that Nepal stands as the 7th largest source of remittances to India, contributing approximately $3.2 billion each year, as reported by the World Bank.
In the fiscal year 2017-2018, trade figures reflected a stark imbalance, with Nepal's total trade with India reaching about $8.2 billion. Exports from Nepal to India accounted for $446.5 million, while imports from India soared to over $7.7 billion, resulting in a substantial trade deficit of around 1724%. The primary imports from India consist of petroleum products, motor vehicles, medicines, and various machinery. Conversely, Nepal exports items such as jute goods, textiles, and electrical products to India, although the volume of exports remains comparatively limited.
Given the significant proportion of petroleum products in Nepal's imports, discussions between the two governments have been initiated regarding the establishment of new additional pipelines to enhance the supply chain and address the growing demand. In recent developments, 2020 marked a year of considerable trade deficit for Nepal with India, amounting to $6.1 billion. However, on a positive note, 2022 saw Nepal exporting electricity worth Rs10.38 billion to India, spotlighting electricity as one of Nepal's burgeoning export commodities. For the first time in November 2021, Nepal was given authorization to sell over 400MW of electricity in the Indian market through a bidding process, signaling a promising shift in trade dynamics and further strengthening ties between the two nations.
Human trafficking is a critical issue in Nepal, posing significant societal and humanitarian challenges. Estimates suggest that between 100,000 and 200,000 Nepalese individuals are subjected to trafficking in various forms, particularly within neighboring India. This alarming statistic highlights the extent of the problem, where vulnerable individuals, mostly women and children, are lured or coerced into dire situations that often lead to exploitation, forced labor, or sexual slavery. The trajectory of trafficking has far-reaching implications not only for the victims but also for the families and communities left behind.
Sex trafficking has emerged as a particularly egregious issue, with thousands of women and girls falling prey annually. Research indicates that between 5,000 and 10,000 women and girls are trafficked from Nepal to India each year. These victims are often subjected to horrific conditions, stripped of their autonomy, and forced into a life of exploitation in brothels or other forms of sexual servitude. Media coverage, including CNN Freedom Project's documentary titled "Nepal's Stolen Children," has shed light on the harrowing realities faced by these individuals. The documentary presented stark evidence of the epidemic, amplifying awareness and urgency surrounding human trafficking in the region.
Organizations such as Maiti Nepal play a crucial role in combating this crisis. Founded in 1993, Maiti Nepal has been at the forefront of initiatives aimed at rescuing and rehabilitating trafficking survivors. They have successfully rescued over 12,000 children who were victims of sex trafficking. In addition to rescue operations, Maiti Nepal engages in preventive measures, including awareness campaigns and education programs aimed at at-risk communities. By advocating against trafficking and supporting survivors, Maiti Nepal not only addresses the immediate challenges but also works towards creating a more just and equitable society in Nepal.
Governments and non-profit organizations worldwide are increasingly recognizing the need for comprehensive strategies to combat human trafficking. Efforts include international collaborations, stricter law enforcement measures, victim support services, and community education. In Nepal, the government has enacted laws intended to curb trafficking; however, implementation remains a challenge. Ongoing advocacy and community-based initiatives are essential to dismantling the networks that perpetuate this cycle of exploitation and to restore dignity and opportunities for vulnerable populations.
The 2015 Madhesi Crisis
In 2015, Nepal faced a significant political and social upheaval with the promulgation of its new Constitution, a process that sparked widespread discontent among various ethnic groups, particularly the Madheshis, Janajatis, and Tharus. These communities felt marginalized as the new constitutional framework largely ignored their demands for representation and autonomy. The Madheshis, who primarily inhabit the southern Terai region along the border with India, were particularly vocal about their grievances. Their sense of alienation was compounded by the fact that the new constitution failed to adequately address issues such as citizenship, federalism, and political power-sharing. This led to widespread protests, wherein the Madheshis organized demonstrations that later escalated into a blockade of the India-Nepal border.
The Blockade and Humanitarian Concerns
The blockade, initiated by the Madheshis in September 2015, occurred in the wake of a devastating earthquake that had rocked Nepal just months earlier, primarily impacting the hilly regions and exacerbating existing humanitarian challenges. As protests intensified, access to essential goods, including food, fuel, and medical supplies, dwindled, leading to a humanitarian crisis that affected not just the Madheshis but the broader population of Nepal. The Nepalese government perceived this blockade as not just a local struggle but as an orchestrated move with potential backing from India, given the Madheshis' ethnic and cultural ties to Indian territories nearby.
Diplomatic Tensions
As tensions escalated, the Nepalese government accused India of exacerbating the crisis by enforcing a blockade across the entire border, effectively preventing the flow of vehicles and goods even at checkpoints where protests were absent. This accusation emerged from the Nepalese perception that India was leveraging its influence to manipulate the situation for its geopolitical interests. The narrative was fueled by historical ties and kinship between people on both sides of the border, particularly the Gorkhas and Nepali-speaking citizens of Sikkim, which were complex and fraught with emotion. However, the Indian government adamantly denied any involvement, cautioning the Nepali authorities against labeling the Sikkimese people as "oppressed," a term that could ignite further regional tensions.
The Aftermath of the Crisis
The Madhesi crisis and subsequent blockade significantly impacted Nepal-India relations, with both countries grappling to define mutual interests amidst ethnic claims and national identities. The situation underscored the need for the Nepalese government to engage more constructively with marginalized communities to foster a sense of inclusion. For India, the crisis brought forth the necessity of balancing its strategic interests in Nepal with the sensitivities of cross-border ethnic ties. The crisis highlighted larger themes of identity, representation, and rights within Nepal's political landscape, raising questions about governance and coexistence in a complex multi-ethnic society. Through these events, both countries learned the critical importance of dialogue and collaboration to avert similar conflicts in the future.