INDIA - NEPAL RELATIONS – INTERNATIONAL

News: Stabilising ties with Nepal in uncertain times

 

What's in the news?

       The electoral verdict in Nepal’s recent elections was credible. It reflected a clear emergence of voter preference for more responsive governance and an impatience with traditional political power games that ignore the aspirations of the youth and the disadvantaged.

       It also reconfirmed the successful ‘taking root’ of democracy in the Himalayan country whose transition from a Hindu monarchy to a secular republic happened after great struggle, sacrifices and ideological adjustments across the political spectrum.

       India will be able to take the unexpected recent developments and prospect of instability in Nepal in its stride, and even find ways to scale up bilateral cooperation.

 

India-Nepal Ties:

         Founded on the age-old connection of history, culture, tradition and religion, these relations are close, comprehensive, and multidimensional and are pronounced more in political, social, cultural, religious, and economic engagements with each other.

 

1. Historical backdrop:

       India and Nepal share similar ties in terms of Hinduism and Buddhism with Buddha’s birthplace Lumbini located in present day Nepal.

       The two countries not only share an open border and unhindered movement of people, but they also have close bonds through marriages and familial ties, popularly known as Roti-Beti ka Rishta.

       The India-Nepal Treaty of Peace and Friendship of 1950 forms the bedrock of the special relations that exist between India and Nepal.

 

2. Trade and Economy:

       India is Nepal’s largest trade partner and the largest source of foreign investments, besides providing transit for almost the entire third country trade of Nepal.

       Himalayan rivers flowing through Nepal can be used for Hydroelectric power projects which will benefit border states of UP, Bihar and other adjacent areas.

       There are three major water deals between Nepal and India, namely the Kosi Agreement, the Gandak Treaty and the Mahakali Treaty. India also exports Power to Nepal.

       Also, Nepal is the largest borrower of Indian Currency in South Asia.

       Nepal has an escalating trade deficit with India. Nepal and India have concluded bilateral Treaty of Transit, Treaty of Trade and the Agreement of Cooperation to Control Unauthorized Trade.

3. Connectivity:

       Nepal shares a border with 5 Indian states - Uttarakhand, Uttar Pradesh, West Bengal, Sikkim, and Bihar. Hence an important point of cultural and economic exchange.

       Nepal being a landlocked country many MOUs have been signed between both governments for better connectivity. For instance, laying an electric rail track linking Kathmandu with Raxaul in India.

4. Defence Cooperation:

       Nepal is a buffer state between India and China.

       The Gorkha Regiments of the Indian Army are raised partly by recruitment from hill districts of Nepal.

       India from 2011, every year undertakes a joint military exercise with Nepal known as Surya Kiran.

5. Cultural:

       There have been initiatives to promote people-to-people contacts in the area of art & culture, academics, and media with different local bodies of Nepal.

       Religion is perhaps the most important factor and plays a predominant role in shaping the cultural relations between these two countries, marked by a cross country pilgrimage on Char Dham Yatra, Pashupatinath Temple and some Buddhist sites.

       India has signed three sister-city agreements for the twinning of Kathmandu-Varanasi, Lumbini-Bodhgaya and Janakpur-Ayodhya.

       A considerable section of Nepalese comprises Madhesi population which has familial & ethnic ties with states of Bihar, UP.

6. Humanitarian Assistance:

       Nepal lies in the sensitive ecological fragile zone which is prone to earthquakes and floods causing massive damage to both life and money, whereby it remains the biggest recipient of India’s humanitarian assistance.

7. Multilateral Partnership:

       India and Nepal share multiple multilateral forums such as BBIN (Bangladesh, Bhutan, India, and Nepal), BIMSTEC (Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation), Non-Aligned Movement, and SAARC (South Asian Association for Regional Cooperation) etc.

 

Why is Nepal Important to India?

1. It acts as a strategic buffer against the aggression of China.

2. The Pakistan factor - Peddling of FICN, drugs and terrorism through the Indo-Nepal border. It makes the cooperation of Nepal important.

3. India and Nepal share common culture - There are huge Nepali communities in Darjeeling and Sikkim. Many marital relations across the border exist.

4. National Security - There is a lot of interdependence. Gurkha Regiment in the Indian Army is known for its valiance.

5. Nepal could play in the hands of China which could be detrimental to Indian interests. Hence they need to be kept as close as possible.

6. Ministry of External Affairs term India-Nepal Relation as “Roti-Beti ka Rishta” (Relation of food and marriage)

7. Energy Security: Nepal has the potential of 80 GW of hydroelectricity. But only 600 MW potential has been realized so far. Nepal’s lack of cooperation in this regard has hindered development. The surplus could be used for Indian border states.

 

Concerns in India-Nepal Relations:

1. Nepali nationalism and Anti-India sentiments:

       Anti-India Sentiment in Nepal is largely politically motivated as it is wrongly perceived as India’s backing to Monarchy.

       The widening gap in understanding each other’s concerns has helped feed Nepali nationalism and create a dense cloud of distrust and suspicion between the two countries.

       The gap widened after India chose to impose an economic blockade in response to Nepal’s sovereign decision to promulgate a democratic constitution.

2. China factor:

       Increasing Chinese presence in Nepal is one of the major concerns for India. China’s move to extend the rail link to its border with Nepal can reduce its dependence on India.

       Fundamentally these Chinese agencies are building up anti-India sentiments in Nepal.

       Nepal’s assent for the ‘One Belt One Region’ (OBOR) initiative of China is viewed by India with suspicion.

       Nepal has been slowly falling prey to China’s inroad debt trap policy.

3. India has ignored the changing political narrative for long:

       The reality is that India has ignored the changing political narrative in Nepal for far too long.

       For too long India has invoked a “special relationship”, based on shared culture, language and religion, to anchor its ties with Nepal.

       The 1950 Treaty of Peace and Friendship which was sought by the Nepali authorities in 1949 is viewed as a sign of an unequal relationship, and an Indian imposition.

4. Internal Security:

       The issue of open borders has also been a point of debate in Nepal in recent years- Nepalese people argue that India is benefiting more from it than Nepal.

       It has an open border with India which leads to problems such as illegal migrants, counterfeit currency entry, drug and human trafficking.

5. Madhesis Issue:

       Madhesis share extensive cross-border ethnic and linguistic links with India. India’s involvement in Nepali politics and the upsurge in Madhesi have deep roots in history and unless resolved.

       Madhesis protest and India’s blockade soured the relations for the worst.

6. Border issues:

       Nepal and India have some contentious issues relating to the border, including the two major areas of dispute at Susta and Kalapani (India-China-Nepal tri-junction).

       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.

7. Big Brother attitude:

       There is a widespread perception in Nepal that India does not respect the country’s sovereignty and that it often intervenes in Nepal’s domestic affairs.

       India has been perceived to be playing a role of big brother in the region.

 

WAY FORWARD:

1. Dialogues for Territorial Disputes:

       In the best spirit of friendship, Nepal and India should restart the water dialogue and come up with policies to safeguard the interests of all those who have been affected on both sides of the border.

       India needs to be a sensitive and generous partner for the neighbourhood first policy to take root.

       The dispute shall be negotiated diplomatically under the aegis of International law on Trans-boundary Water Disputes.

2. Sensitising Towards Nepal:

       The onus is on India to rethink on a long-term basis how to recalibrate its relationship with Nepal provided Nepal should not ignore its relations with India.

       It should maintain the policy of keeping away from the internal affairs of Nepal, meanwhile, in the spirit of friendship, India should guide the nation towards more inclusive rhetoric.

 

3. Strengthening Economic Ties:

       The power trade agreement needs to be such that India can build trust in Nepal. Despite more renewable energy projects (solar) coming up in India, hydropower is the only source that can manage peak demand in India.

       For India, buying power from Nepal would mean managing peak demand and also saving the billions of dollars of investments that would have to be invested in building new power plants, many of which would cause pollution.

4. Investments from India:

       The Bilateral Investment Promotion and Protection Agreement (BIPPA) signed between India and Nepal needs more attention from Nepal’s side.

       The private sector in Nepal, especially the cartels in the garb of trade associations, are fighting tooth and nail against foreign investments.

       It is important that Nepal conveys this message that it welcomes Indian investments

5. Mutual Empathy:

       The will of the political class across party lines, bureaucracies, and civil society on either side of the border to understand what the world looks like from the other side.

       Empathy is an urgent necessity more than ever before, as a factor for sustainable friendly ties.

 

Thus, India should maintain the policy of keeping away from internal affairs of Nepal, meanwhile in the spirit of friendship India should guide the nation towards more inclusive rhetoric. With its immense strategic relevance in the Indian context as Indian security concern, stable and secure Nepal is one requisite which India can’t afford to overlook.