Overview

India and Nepal share a relationship deeply rooted in historical, cultural, and geographical ties. This relationship has evolved significantly from the early 20th century through the 21st century, marked by cooperation and conflict. Both countries have navigated a complex interplay of diplomacy, security, and economics, influenced by their historical context and contemporary developments. This article by Academic Block will looks into the intricate dynamics of India-Nepal relations, exploring their historical roots, key milestones, and the current state of affairs.

Historical Context

Early 20th Century

The early 20th century was a period of transformation for Nepal and its relationship with India. During British colonial rule, Nepal maintained a unique status as a semi-independent kingdom under British suzerainty. India’s relationship with Nepal was relatively indirect, influenced by the broader context of British imperial interests in the region. Despite this indirect relationship, the proximity and cultural ties between the two nations laid the groundwork for future interactions.

Post-Independence Era (1947-1960s)

The end of British rule in 1947 marked the beginning of a new era for India and Nepal. With India's independence, the bilateral relationship took on a more direct and formal dimension. The 1950 Indo-Nepal Treaty of Peace and Friendship was a cornerstone of this new phase. The treaty established a framework for cooperation in defense, trade, and political matters, reflecting the close ties and mutual interests between the two countries.

However, the treaty also reflected India's significant influence over Nepal. The political landscape in Nepal began to shift with the rise of democratic movements and the end of the Rana regime. Nepal’s transition from a monarchy under the Rana rule to a democratic monarchy in 1951 created new dynamics in its relations with India.

The 1960s to 1980s: Growth and Challenges

Political Shifts and Diplomatic Developments

The 1960s and 1970s were marked by significant political changes in Nepal. The country experienced a shift from a democratic monarchy to a more centralized monarchy under King Mahendra’s regime. During this period, Nepal’s foreign policy was largely influenced by India’s geopolitical stance. India’s support for Nepal in the face of external pressures, particularly from China, was a key aspect of their relationship.

In the 1980s, Nepal continued to navigate its relationship with India amidst domestic political changes. The rise of popular movements for democratic reforms within Nepal, coupled with India's increasing involvement in South Asian politics, created a complex environment for bilateral relations. India’s support for democratic movements in Nepal was a significant factor, reflecting its broader regional policy goals.

Economic and Strategic Cooperation

Economic and strategic cooperation between India and Nepal grew during this period. India played a crucial role in Nepal’s development by providing economic aid and support for infrastructure projects. The establishment of trade agreements and joint ventures further strengthened the economic ties between the two nations. Nepal’s reliance on India for trade and transit, given their shared border, was a fundamental aspect of their economic relationship.

The 1990s: A New Phase of Cooperation and Conflict

Democratic Transition in Nepal

The 1990s marked a pivotal period in Nepal’s history with the transition from a constitutional monarchy to a federal democratic republic. The end of the Panchayat system and the establishment of a multiparty democracy in 1990 brought significant changes to Nepal’s political landscape. This transition had profound implications for India-Nepal relations.

India supported Nepal’s democratic transition and maintained a close relationship with the new government. However, the relationship also faced challenges, particularly regarding Nepal’s internal political dynamics and its relations with other regional powers. India’s perceived influence over Nepal’s political processes occasionally led to tensions and accusations of interference.

Maoist Insurgency and Its Impact

The rise of the Maoist insurgency in Nepal in the late 1990s and early 2000s introduced new challenges to India-Nepal relations. The insurgency, led by the Communist Party of Nepal (Maoist), posed a threat to Nepal’s stability and had implications for regional security. India, concerned about the potential spread of insurgency and its impact on its own security, closely monitored the situation.

During this period, India’s support for the Nepalese government and its efforts to combat the insurgency were significant aspects of their relationship. The Maoist insurgency highlighted the complexities of India-Nepal relations, with security concerns and regional stability playing a central role.

21st Century: Evolving Dynamics

Post-Maoist Era and Political Developments

The early 21st century saw significant political developments in Nepal, including the abolition of the monarchy and the establishment of a federal democratic republic in 2008. The political transition and the drafting of a new constitution in 2015 marked a new phase in Nepal’s political evolution. India played a supportive role during these transitions, emphasizing its commitment to Nepal’s democratic process.

However, the relationship between India and Nepal faced strains during this period. The 2015 blockade, which Nepal accused India of orchestrating in response to the new constitution, was a major point of contention. The blockade led to a humanitarian crisis in Nepal and strained diplomatic relations between the two countries.

Economic Cooperation and Regional Integration

Economic cooperation continued to be a cornerstone of India-Nepal relations in the 21st century. India remained a major trading partner and provider of development aid to Nepal. The countries worked on various projects, including infrastructure development, energy cooperation, and trade facilitation.

Regional integration also became a focus of bilateral relations. India supported Nepal’s participation in regional organizations such as the South Asian Association for Regional Cooperation (SAARC) and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). These platforms provided opportunities for enhanced cooperation and dialogue between India and Nepal.

Border Disputes and Diplomatic Tensions

Border disputes and diplomatic tensions have periodically affected India-Nepal relations. Disagreements over the demarcation of borders, particularly in areas such as Kalapani and Lipulekh, have led to diplomatic spats and public protests. These disputes highlight the ongoing challenges in managing bilateral relations and the complexities of historical and geographical factors.

Cultural and Social Ties

India and Nepal share profound cultural, religious, and linguistic affinities. Hinduism and Buddhism serve as strong cultural connectors, with millions of pilgrims traveling between the two countries to visit sacred sites like Pashupatinath Temple in Kathmandu and the birthplace of Lord Buddha in Lumbini.

The open border policy allows citizens to move freely, fostering interpersonal relationships and trade. Intermarriages between Indian and Nepali families have further strengthened these ties, creating a unique socio-cultural dynamic that transcends national boundaries. The shared festivals, rituals, and languages underscore the deeply intertwined nature of their societies.

Water Resources and Hydropower Cooperation Between India and Nepal

Water resources and hydropower cooperation have long been integral to the India-Nepal relationship due to the countries' shared river systems. The Himalayas' snow-fed rivers, such as the Ganga, Koshi, Gandaki, and Mahakali, flow from Nepal into India, creating opportunities for mutual benefit in irrigation, flood control, and energy generation. However, these shared resources have also been sources of contention, requiring careful diplomatic and technical management.

Significance of Shared Rivers

Nepal, with its vast hydropower potential of over 83,000 megawatts, is often referred to as the "water tower" of South Asia. The shared rivers are lifelines for millions of people in both countries, supporting agriculture, drinking water, and energy needs. For India, these rivers are crucial for irrigation in northern states such as Uttar Pradesh and Bihar, while Nepal views them as vital for its economic development through hydropower exports.

Key Agreements and Treaties

1. Koshi Agreement (1954) : The Koshi River is one of the major transboundary rivers. The 1954 Koshi Agreement facilitated the construction of the Koshi Barrage in Nepal to manage flood control and irrigation in India. While the project has benefitted Indian farmers, Nepali stakeholders have often criticized the agreement for not adequately addressing their interests, such as compensation and local benefits.

2. Gandak Agreement (1959) : The Gandak Treaty enabled the construction of a barrage to manage water distribution for irrigation and hydropower. Like the Koshi Agreement, this treaty has been contentious, with Nepali parties expressing concerns over its unequal benefits.

3. Mahakali Treaty (1996) : One of the most significant agreements, the Mahakali Treaty, governs the equitable utilization of the Mahakali River. It covers projects such as the Tanakpur Barrage and the proposed Pancheshwar Multipurpose Project. The treaty aims to ensure mutual benefits in hydropower generation, irrigation, and flood control. However, delays in implementing the Pancheshwar Project have hindered the treaty’s full potential.

Hydropower Projects

1. Arun III Hydropower Project : A major success in India-Nepal cooperation, this 900 MW project is being developed by India’s Satluj Jal Vidyut Nigam Limited (SJVN). It represents a milestone in harnessing Nepal’s hydropower potential and facilitating energy exports to India.

2. Upper Karnali Hydropower Project : This project, involving Indian companies, is another example of cooperation. It aims to generate 900 MW of electricity, with Nepal expected to benefit from free energy and royalties.

3. Budhi Gandaki and Other Proposed Projects : Nepal has explored additional projects with Indian investments, highlighting the potential for deeper collaboration.

Security and Counter-Terrorism Cooperation

Security and counter-terrorism cooperation form a critical pillar of India-Nepal relations. The open border, shared geopolitical vulnerabilities, and the rise of transnational threats necessitate robust collaboration to address mutual security concerns. Over the years, both nations have worked together to enhance their security mechanisms, strengthen intelligence-sharing, and combat cross-border crimes.

Open Border and Security Challenges

The 1,800-kilometer open border is both a symbol of trust and a potential vulnerability. While it fosters people-to-people ties and economic activity, it has also been exploited by criminal networks for smuggling, human trafficking, and illegal trade. Moreover, the porous nature of the border creates challenges in monitoring the movement of extremist elements and preventing infiltration by anti-national groups.

Addressing Cross-Border Crimes

India and Nepal have engaged in coordinated efforts to tackle cross-border crimes. Joint security mechanisms, such as border security coordination meetings between the Indian Border Security Force (BSF) and Nepalese Armed Police Force (APF), have been institutionalized to address these issues. Enhanced border patrols and regular exchanges between local officials aim to curb illegal activities while maintaining the open border's sanctity.

Counter-Terrorism Collaboration

Counter-terrorism has gained prominence in bilateral relations due to the growing threat of extremist groups operating across South Asia. India has raised concerns about the potential use of Nepalese territory by anti-India elements, including insurgent groups and terror organizations. In response, Nepal has committed to ensuring that its territory is not used for activities that threaten India's security.

Both countries actively share intelligence on terrorist activities, coordinate law enforcement actions, and conduct joint operations against organized crime. Notable efforts include cracking down on terror financing, arms smuggling, and sleeper cells operating in border regions.

The Role of Gurkhas

The Gurkha regiments in the Indian Army are a unique symbol of the deep-rooted trust and respect between India and Nepal. Thousands of Nepalis serve in the Indian Army under a tradition dating back to the colonial era. This arrangement provides Nepalese citizens with stable employment and income while contributing to India's security. The pensions and other benefits received by retired Gurkhas form a significant economic link between the two nations.

However, the Gurkha issue has occasionally sparked domestic debates in Nepal, with some questioning its impact on Nepal’s sovereignty. Yet, the overwhelming sentiment remains one of pride in the contributions of Gurkhas to India’s defense.

Geopolitical Sensitivities

The proximity of Nepal to China adds a layer of complexity to its security policies. India has encouraged Nepal to balance its relationships with regional powers while remaining vigilant against external influences that could destabilize the region. The growing role of China in Nepal's security infrastructure, including training programs and equipment supply, has been a point of concern for India.

Capacity Building and Training

India has played a significant role in strengthening Nepal’s security capabilities. Through programs like the Indian Technical and Economic Cooperation (ITEC), Nepalese police and armed forces receive training in counter-terrorism, border management, and intelligence analysis. India also provides assistance in upgrading Nepal’s security infrastructure, such as surveillance systems and communication networks, to bolster its capacity to address modern security threats.

Significance of Cooperation

Security and counter-terrorism collaboration is essential for regional stability. By addressing shared challenges, India and Nepal can ensure the safety of their populations, secure their borders, and prevent external actors from exploiting vulnerabilities. Continued cooperation in this area will not only strengthen bilateral ties but also contribute to the broader security architecture of South Asia.

Current State of Affairs and Future Prospects

Recent Developments and Bilateral Initiatives

In recent years, India and Nepal have worked to address challenges and strengthen their bilateral relationship. Diplomatic engagements, high-level visits, and collaborative projects have aimed at improving ties. The countries have focused on resolving border disputes through dialogue and enhancing economic cooperation.

The COVID-19 pandemic also impacted India-Nepal relations, with both countries collaborating on health-related issues and supporting each other during the crisis. The pandemic highlighted the importance of cross-border cooperation and the need for continued dialogue and collaboration.

Future Directions

Looking ahead, the future of India-Nepal relations will likely be shaped by several factors. Addressing border disputes, fostering economic cooperation, and enhancing regional integration will be crucial for strengthening ties. The evolving geopolitical landscape in South Asia, including the roles of other regional powers, will also influence the dynamics of India-Nepal relations.

Both countries have a shared interest in maintaining stability, promoting economic growth, and enhancing cooperation in various fields. The relationship will benefit from continued dialogue, mutual respect, and a commitment to addressing challenges collaboratively.

Final Words

India-Nepal relations have undergone significant transformations from the early 20th century to the present. The historical, cultural, and geographical ties between the two countries have played a fundamental role in shaping their relationship. While the bilateral relationship has faced challenges and tensions, it has also demonstrated resilience and cooperation.

As India and Nepal navigate the complexities of the 21st century, their relationship will continue to evolve. Addressing historical grievances, fostering economic cooperation, and enhancing regional integration will be key to strengthening their ties and building a mutually beneficial partnership. The future of India-Nepal relations will depend on the ability of both countries to manage their differences, seize opportunities for collaboration, and work together for the common good of their peoples. We would love to hear your thoughts in the comments below to help us make this article better. Your feedback is important to us. Thank you for Reading!