India Nepal Bilateral Relations
26-08-2023
12:35 PM
1 min read
What’s in today’s article?
- Why in news?
- India Nepal bilateral relations
- Dfferent aspects of Bilateral Relations between India and Nepal
- Economic cooperation between India and Nepal
- Indian Investment in Nepal
- Connectivity and Development Partnership between India and Nepal
- Cooperation in the power sector & energy between India and Nepal
- Defence Cooperation between India and Nepal
- Nepal Earthquake 2015 and Indian response
- News Summary: Official Visit of Prime Minister of Nepal to India
- Key highlights of the Official Visit of Prime Minister of Nepal to India:
- Key highlights of PM Modi’s speech
Why in news?
- Pushpa Kamal Dahal ‘Prachanda’, Prime Minister of Nepal is on an official visit to India from 31 May 2023 to 03 June 2023.
- This is the first bilateral visit abroad by the PM of Nepal after assuming office in December 2022.
India Nepal bilateral relations
- As close neighbours, India and Nepal share a unique relationship of friendship and cooperation characterized by open borders and deep-rooted people-to-people contacts of kinship and culture.
- The India-Nepal Treaty of Peace and Friendship of 1950 forms the bedrock of the special relations that exist between India and Nepal.
- Under this Treaty, the Nepalese citizens enjoy unparalleled advantages in India, availing facilities and opportunities at par with Indian citizens.
- Nearly 6 million Nepali citizens live and work in India.
Different aspects of Bilateral Relations between India and Nepal
Economic cooperation between India and Nepal
- India is the largest trading partner of Nepal. Nepal is also India’s 11th largest export destination, up from 28th position in 2014.
- Total bilateral trade in 2021-22 reached US$ 11,005.10 million.
- In 2021-22, while Nepal’s exports to India stood at US$ 1,371.04 mn, India’s exports to Nepal were US$ 9,634.06 mn.
Indian Investment in Nepal
- India is the largest source of investment into Nepal, accounting for more than 32% of the total FDI stock of Nepal, which is worth nearly USD 520 million, as per NRB data until mid-2020.
Connectivity and Development Partnership between India and Nepal
- India’s development assistance to Nepal is a broad-based programme focusing on creation of infrastructure at the grass-roots level.
- Various projects have been implemented in the areas of infrastructure, health, water resources, education and rural & community development.
- The total economic assistance earmarked under ‘Aid to Nepal’ budget in FY 2022-23 was Rs 6.8 billion.
Cooperation in the power sector & energy between India and Nepal
- Nepal exports more than 450 MW of electricity to India.
- India has built several hydroelectric projects, like Pokhara (1 MW), Trisuli (21 MW), Western Gandak (15 MW), and Devighat (14.1 MW) etc.
- The first high-capacity 400 kV Muzaffarpur (India) - Dhalkebar (Nepal) cross-border power transmission line was completed in 2016 with Indian funding.
- Two additional 132 kV cross-border transmission lines between Kataiya (India) - Kusaha (Nepal) and Raxaul (India) - Parwanipur (Nepal), built with GoI grant assistance, were completed in 2017.
- South Asia’s first cross-border petroleum products pipeline, constructed and funded by Indian Oil Corporation Ltd., connecting Motihari in India to Amlekhgunj in Nepal was inaugurated in September 2019.
Defence Cooperation between India and Nepal
- A number of defence personnel from Nepal Army attend training courses in various Indian Army training institutions.
- The Joint Military Exercise SURYA KIRAN is conducted alternately in India and in Nepal.
- Since 1950, India and Nepal have been awarding each other’s Army Chief with the honorary rank of General in recognition of the mutual harmonious relationship between the two armies.
- The Gorkha regiments of the Indian Army are raised partly by recruitment from hill districts of Nepal.
Nepal Earthquake 2015 and Indian response
- A devastating 7.8 magnitude earthquake struck Nepal on 25 April 2015.
- India was the first country to respond by dispatching National Disaster Response Force (NDRF) teams and special aircrafts with rescue and relief materials to Nepal.
- The total Indian relief assistance to Nepal amounted to over US$ 67 million. Later, India announced a post-earthquake reconstruction package of US$ 1 bn.
News Summary: Official Visit of Prime Minister of Nepal to India
- PM Modi and his visiting Nepalese counterpart held wide-ranging talks focusing on boosting India-Nepal cooperation in several areas including energy, connectivity and trade.
Key highlights of the Official Visit of Prime Minister of Nepal to India:
- Projects launched
- Handing over of Kurtha-Bijalpura section of railway line.
- Inaugural run of an Indian railway cargo train from Bathnaha (India) to Nepal Customs Yard which is the newly constructed rail link under Indian grant.
- Inauguration of Integrated Checkposts (ICPs) at Nepalgunj (Nepal) and Rupaidiha (India).
- Ground breaking ceremony of ICPs at Bhairahawa (Nepal) and Sonauli (India).
- Ground breaking ceremony of phase-II facilities under Motihari-Amlekhgunj Petroleum Pipeline.
- Ground breaking ceremony of Indian portion of Gorakhpur-Bhutwal Transmission Line.
- MoUs/agreement exchanged
- Treaty of Transit between the Government of India and the Government of Nepal;
- MoU between the Government of India and the Government of Nepal for cooperation in the field of Petroleum Infrastructure;
- MoU between India and Nepal for the development of infrastructure at Dodhara Chandani check post along India-Nepal Border;
- MoU between NPCIL & NCHL, Nepal for cross border payments;
- Project Development Agreement of Lower Arun Hydroelectric Project;
- MoU for the development of Phukot- Karnali Hydroelectric Project.
Key highlights of PM Modi’s speech
- Transformation of relationship from HIT to Super HIT
- In 2014, during his first visit to Nepal, PM Modi had given a 'HIT' formula for India-Nepal relations - Highways, I-ways, and Trans-ways.
- He said that today's agreements would help that relationship become a 'super HIT'.
- He also said that we will continue to strive to take India-Nepal ties to Himalayan heights.
- Highlighted various accomplishments in the bilateral relationship in past 9 years
- Nepal's first ICP was made in Birganj.
- The first Cross-Border Petroleum Pipeline of our region was built between India and Nepal.
- The first Broad-Gauge rail line has been established between us.
- Gave glimpse of agreements signed during the current visit
- Transit Agreement has been concluded.
- In this, along with new rail routes for the people of Nepal, provision has also been made for the facility of India's inland waterways.
- To boost connectivity to the far western region of Nepal, two more bridges will be built at Shirsha and Jhulaghat.
- Economic connectivity will be strengthened by the construction of three "ICPs”.
- Taking this forward, a long-term Power Trade Agreement has been signed between India and Nepal.
- Under this Agreement, India has set a target of importing 10,000 MW of electricity from Nepal in the coming ten years.
- Cooperation in the power sector has been further strengthened by agreements on the Phukot-Karnali and Lower Arun Hydro-Electric Projects.
- In view of the positive impact of Motihari-Amlekhganj petroleum pipeline, it has been decided to take this pipeline up to Chitwan.
- Besides this, another new pipeline will also be constructed from Siliguri to Jhapa in eastern Nepal.
- Simultaneously, new storage terminals will also be set up at Chitwan and Jhapa.
- Both sides have also agreed on mutual cooperation to set up a fertilizer plant in Nepal.
- Transit Agreement has been concluded.
Q1) What is India-Nepal Treaty of Peace and Friendship of 1950?
The India-Nepal Treaty of Peace and Friendship of 1950 is a bilateral treaty signed between the governments of India and Nepal. It is an important treaty that governs the relationship between the two neighboring countries. The treaty consists of ten articles and covers various aspects of the bilateral relationship, including peace, friendship, and cooperation between India and Nepal.
Q2) What is a Integrated Check Post (ICP)?
An Integrated Check Post (ICP) is a facility established at border crossings or checkpoints to facilitate the movement of goods, vehicles, and people across international borders. It serves as a comprehensive infrastructure setup that integrates various government agencies and their respective processes involved in customs clearance, immigration, security checks, and other regulatory procedures.
Source: English translation of Press Statement by Prime Minister Shri Narendra Modi during the visit of Prime Minister of Nepal | MEA | Hindustan Times | Indian Embassy in Nepal