Bryce Young

India and Nepal share a unique and multi-faceted relationship that is characterized by historical, cultural, religious, geographical, and political linkages. From the onset, the relationship between the two countries has been underpinned by common civilizational bonds, open borders, and the deep intermingling of people on both sides. Both India and Nepal, two neighboring countries in South Asia, have been engaged in a relationship that reflects both cooperation and occasional contention, shaped by domestic, regional, and international factors. Over time, this relationship has gone through several phases, yet it has largely remained robust and deeply interconnected. The narrative of India-Nepal relations is a mix of diplomacy, cultural interactions, people-to-people exchanges, and strategic engagement.

Historical Foundations

The India-Nepal relationship dates back to ancient times, with shared religious and cultural heritages rooted in Hinduism and Buddhism. The two nations have had strong connections since the time of Gautama Buddha and Emperor Ashoka. The Lumbini region in Nepal, where Buddha was born, is one of the most important religious and historical sites for Buddhists around the world, and it underscores the ancient cultural ties between the two nations.

Additionally, several Hindu scriptures, including the Ramayana and Mahabharata, mention Nepal as a significant region with connections to India. The marriage of Sita, the daughter of King Janaka of Mithila (in modern-day Nepal), to Lord Rama, is an example of the historical and religious link between the two countries. Moreover, centuries of cross-border migrations, intermarriages, and common practices in art, architecture, and language further solidify these ancient ties.

Political and Diplomatic Relations

The formal diplomatic relationship between India and Nepal began after the latter’s independence from British colonial rule in 1947. India was among the first countries to recognize Nepal’s sovereignty, and it has consistently supported the country's developmental aspirations. The Treaty of Peace and Friendship signed in 1950 laid the cornerstone for the modern relationship between the two nations. This treaty established provisions for open borders, mutual security cooperation, and equal treatment of citizens in each other’s countries. The open border allows people from both countries to travel freely without visas or passports, and millions of Nepali citizens live and work in India, while many Indians have business ties in Nepal.

However, despite the close ties, the Treaty of 1950 has occasionally been viewed as controversial in Nepal, with many segments of Nepalese society and political parties calling for its revision. Some in Nepal have argued that the treaty gives India too much influence in Nepal’s internal affairs, particularly in the realms of security and defense. On the other hand, Indian officials have often highlighted that the treaty is based on mutual respect and benefits both countries equally.

Economic Cooperation and Trade

India has remained Nepal’s largest trading partner and one of its major development partners. Nepal is heavily reliant on Indian imports for essential goods like petroleum products, medicines, and food supplies. Likewise, India is a significant destination for Nepalese exports. The bilateral trade relations are further facilitated by an open border system and deep economic linkages.

Numerous economic agreements have been signed over the years, including trade and transit treaties, as Nepal is a landlocked country that depends on Indian ports for its access to the sea. The geographical proximity and economic interdependence have made trade relations pivotal to the broader bilateral relationship.

Additionally, Indian investments in Nepalese industries, hydroelectric projects, and infrastructure development have been significant. Nepal’s hydropower potential is immense, and India has been a key player in investing and developing this sector, though the progress has been slow due to various political, technical, and financial challenges. Despite the potential for cooperation in energy, including cross-border electricity trade, both countries have struggled to fully capitalize on these opportunities due to bureaucratic delays and mutual mistrust at times.

Cultural and Religious Ties

Culturally, India and Nepal are intertwined through shared religious practices, festivals, and languages. Hinduism and Buddhism dominate the religious life of both countries, and pilgrimage routes across the India-Nepal border highlight the interconnectedness of the two peoples. Religious tourism plays an essential role, with Indian pilgrims visiting important sites in Nepal like Lumbini, Pashupatinath Temple, and Muktinath. Conversely, Nepalese devotees frequently visit India’s religious sites such as Varanasi, Rishikesh, Haridwar, and Ayodhya.

The role of the Indian diaspora in Nepal and the Nepalese diaspora in India further strengthens cultural relations. Marriages between Indian and Nepalese families are common, particularly in the Terai region of Nepal, where cultural practices, languages, and customs are virtually identical to northern Indian states like Bihar and Uttar Pradesh.

Security and Strategic Relations

The open border between India and Nepal has strategic implications, both positive and negative. On one hand, it allows for the free movement of people, but on the other, it poses challenges related to border security, illegal trade, and smuggling. India has always viewed Nepal’s strategic location as important, given its proximity to China. Nepal, positioned between two Asian giants—India and China—has to navigate its foreign policy carefully to avoid being drawn into regional rivalries. India's interest in Nepal's stability is also linked to concerns over terrorism, the infiltration of anti-Indian elements, and insurgencies in its northeastern states, which have occasionally found safe havens in the Nepalese territory.

Over the years, India has provided significant military assistance to Nepal, especially in terms of training and equipment for the Nepalese Army. India’s military engagement with Nepal includes the recruitment of Nepalese citizens into the Indian Army, with the famed Gurkha regiments symbolizing the deep military ties between the two nations. These regiments, known for their valor, have served with distinction in the Indian military and international peacekeeping missions.

However, the security relationship has also seen tensions. In 2015, India imposed an unofficial blockade on Nepal following disagreements over Nepal’s new constitution, which some claimed sidelined the Madhesi ethnic community. The blockade led to widespread anti-Indian sentiment in Nepal, with allegations that India was attempting to interfere in Nepal’s internal politics. This incident is often cited as one of the lowest points in the bilateral relationship.

Geopolitical Challenges: The China Factor

Nepal’s geographical location makes it a significant player in the regional geopolitics of South Asia. Historically, Nepal has tried to maintain a policy of non-alignment, balancing its relations with India and China. However, the competition between India and China in Nepal has become more pronounced in recent years, particularly as China has increased its investments and influence in Nepal under its Belt and Road Initiative (BRI).

China’s growing presence in Nepal’s infrastructure development, such as road, airport, and rail projects, has raised concerns in India about Nepal drifting into China’s sphere of influence. India sees Nepal as falling within its traditional sphere of influence and has often been wary of Chinese involvement in the region. This geopolitical competition has sometimes put Nepal in a delicate position, with its leaders having to skillfully balance both relationships to avoid antagonizing either neighbor.

On the flip side, some in Nepal have viewed China’s involvement as a way to counterbalance India’s influence, especially following events like the 2015 blockade. While Nepal continues to maintain close ties with India, its engagement with China has added a new dimension to its foreign policy.

Water Sharing and Environmental Issues

Water-sharing issues are central to India-Nepal relations due to the many transboundary rivers flowing from Nepal into India. The most notable of these rivers is the Kosi River, which has been the subject of several bilateral agreements aimed at flood control, irrigation, and hydroelectric power generation.

However, water-sharing agreements have often been a source of contention between the two countries. Nepal has, at times, accused India of disproportionately benefiting from these agreements, while India has raised concerns about floods originating from Nepal during the monsoon season. Finding an equitable solution to these water-sharing challenges remains an ongoing issue in bilateral negotiations.

Moreover, environmental concerns such as deforestation, soil erosion, and pollution affect both countries. Given their shared ecosystems, particularly in the Himalayan region, any environmental degradation in one country is likely to have cross-border consequences. As climate change becomes a more pressing global issue, cooperation on environmental conservation, disaster management, and sustainable development has the potential to become a significant area of partnership between India and Nepal.

Recent Developments and the Way Forward

In recent years, the relationship between India and Nepal has seen both positive steps forward and moments of tension. Indian Prime Minister Narendra Modi’s visit to Nepal in 2014 was hailed as a new chapter in bilateral ties, with promises of increased connectivity, trade, and people-to-people relations. Subsequent visits by Nepalese leaders to India, as well as increased cooperation in sectors like energy and infrastructure, have helped improve relations.

However, the territorial dispute over the Kalapani-Lipulekh-Limpiyadhura region, which escalated in 2020, led to renewed tensions. Nepal published a new political map including the disputed region, which India rejected, further straining ties. Despite these challenges, both nations have expressed a desire to resolve issues through dialogue, and recent engagements indicate a willingness to improve relations.

Conclusion

The India-Nepal relationship is complex, shaped by centuries of historical, cultural, and religious bonds, as well as contemporary political, economic, and strategic considerations. While the relationship has seen occasional strains due to geopolitical dynamics, domestic politics, and economic disagreements, the underlying ties between the two nations remain resilient. Moving forward, both India and Nepal will need to address outstanding issues like border disputes, trade imbalances, and security concerns while capitalizing on shared opportunities, particularly in areas like energy cooperation, cultural exchange, and sustainable development. With careful diplomacy and mutual respect, the India-Nepal relationship has the potential to remain strong and enduring in the years to come.