Why in News?

• Nepal Prime Minister Balendra Shah (Balen) stated that the India–Nepal border dispute is not one-sided, acknowledging overlapping territorial claims.
• Signals a pragmatic approach towards resolving long-standing disputes through diplomatic dialogue rather than political rhetoric.

Key Points

• India and Nepal share a unique civilizational relationship often described as "Roti-Beti ka Rishta".
• Nepal is a key pillar of India's Neighbourhood First Policy.
• Relations are based on:
  • Historical ties
  • Cultural affinity
  • Open borders
  • Economic interdependence
  • Security cooperation

Historical Foundation

Treaty of Peace and Friendship, 1950

Significance

• Forms the bedrock of India–Nepal relations.
• Establishes a special bilateral relationship.

Key Provisions

• Open border between the two countries.
• Free movement of people.
• Citizens can:
  • Live
  • Work
  • Own property
  • Conduct business without passport or visa restrictions.

Geostrategic Importance

Nepal as a Buffer State

• Located between:
  • India
  • China

Strategic Importance

• Acts as a critical Himalayan buffer.
• Important for India's northern security architecture.

Border

Length

• Approximately 1,751 km

Indian States Sharing Border

1. Uttarakhand
2. Uttar Pradesh
3. Bihar
4. West Bengal
5. Sikkim

Nature

• Open and porous border.
• Facilitates trade, tourism and people-to-people contact.

Pillars of India–Nepal Relations

1. Economic Cooperation

Trade

• India is Nepal's largest trading partner.

Investment

• India is among the largest sources of FDI in Nepal.

Transit Access

• Nepal is landlocked.
• Relies heavily on Indian ports for third-country trade.

2. Defence & Security Cooperation

Military Ties

• Deep institutional relationship between armed forces.

Gorkha Recruitment

• Indian Army recruits soldiers from Nepal into:
  • Gorkha Regiments

Joint Military Exercise

Surya Kiran

• Annual India–Nepal military exercise.
• Focus:
  • Counter-terrorism
  • Disaster response
  • Interoperability

Border Security Cooperation

• Coordination against:
  • Smuggling
  • Human trafficking
  • Cross-border crime
  • Terrorist activities

3. Connectivity Cooperation

Physical Connectivity

• Integrated Check Posts (ICPs)
• Cross-border rail projects
• Road connectivity projects

Energy Connectivity

Motihari–Amlekhgunj Petroleum Pipeline

• First cross-border petroleum pipeline in South Asia.

Power Trade

• India imports hydropower from Nepal.
• Nepal is emerging as a regional hydropower hub.

4. Cultural & Civilizational Ties

Shared Heritage

• Hinduism
• Buddhism
• Sanskritic traditions

Religious Links

• Pashupatinath Temple (Nepal)
• Janakpur (Birthplace of Sita)
• Lumbini (Birthplace of Buddha)

People-to-People Relations

• Intermarriages
• Shared festivals
• Migration and employment linkages

Major Challenges in Bilateral Relations

1. Border Disputes

Historical Origin

• Ambiguities in the Treaty of Sugauli (1816).

Major Disputed Areas

Kalapani–Limpiyadhura–Lipulekh Region

• Located near the India–Nepal–China tri-junction.

Susta Region

• Located along the Bihar–Nepal border.

Recent Developments

• Nepal released a revised political map including disputed territories.
• Periodic tensions over border infrastructure and occupation claims.

2. China Factor

Growing Chinese Presence

• Belt and Road Initiative (BRI) projects.
• Infrastructure investments.
• Airport and telecom projects.

Indian Concerns

• Strategic influence of China in Nepal.
• Security implications in the Himalayan region.

3. Review of the 1950 Treaty

Nepal's Concerns

• Treaty perceived by some groups as:
  • Unequal
  • Outdated
  • Favouring India

Demand

• Revision to reflect contemporary realities.

4. Domestic Political Factors

Anti-India Sentiment

• Occasionally used by political parties in Nepal for domestic mobilization.

Impact

• Creates fluctuations in bilateral relations.
• Delays diplomatic engagement.

Significance for India

Security Importance

• Stability along Himalayan frontier.
• Strategic balancing against Chinese influence.

Economic Importance

• Trade and energy cooperation.
• Access to hydropower resources.

Regional Diplomacy

• Critical component of:
  • Neighbourhood First Policy
  • SAGAR Vision
  • Regional integration efforts

Cultural Diplomacy

• Deep civilizational links strengthen soft power.

Way Forward

Diplomatic Engagement

• Continue high-level political dialogue.
• Resolve disputes through established mechanisms.

Boundary Resolution

• Joint survey and mapping exercises.
• Scientific and evidence-based approach.

Connectivity Expansion

• Rail links.
• Road corridors.
• Energy transmission networks.

Hydropower Cooperation

• Expand power trade agreements.
• Joint investments in hydropower projects.

People-Centric Relations

• Promote educational, cultural and tourism exchanges.
• Strengthen local border-area cooperation.

Important Places & Locations

Border Disputes

• Kalapani
• Limpiyadhura
• Lipulekh
• Susta

Connectivity Projects

• Motihari–Amlekhgunj Pipeline

Religious Sites

• Pashupatinath
• Janakpur
• Lumbini

Prelims Facts

• Treaty of Peace and Friendship → 1950
• Treaty of Sugauli → 1816
• India–Nepal Border Length → 1,751 km
• Joint Military Exercise → Surya Kiran
• Petroleum Pipeline → Motihari–Amlekhgunj
• Nepal borders 5 Indian States
• Nepal is a landlocked country between India and China