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New tie-ups in Nepal, concern in India

GS Paper 2

Syllabus: India and Neighbourhood countries


Source: Indian Express

Context: Pushpa Kamal Dahal “Prachanda” was sworn in as Nepal’s new Prime Minister after he switched sides to join hands with a bitter foe, the former prime minister Kharga Prasad Oli.

Delhi views Oli as pro-China, and the coming together of Communist forces to form the government is a turning back of the clock from its point of view. After the bitterness in ties during Oli’s terms in office from 2015-2016 and 2018-2021, India-Nepal relations improved after Deuba became PM in 2021.

 The issues/reasons for the bilateral relations slide apart between India and Nepal are:

Territory claims issues at the Lipulekh pass

  • The Treaty of Sugauli signed by Nepal and the British East India Company in 1816, defined River Mahakali as the western border of Nepal.
  • However, India claims that the river begins in Kalapani as this is where all its tributaries merge. But Nepal claims that it begins from LipuLekh Pass, the origin of most of its tributaries

The ‘China card’

Trade agreements carrying vestiges of old rules

  • India-Nepal trading agreements still carry vestiges of old rules. For example, Nepali traders cannot import products from India that are not manufactured in India 

Recalibration of ties, for better future India-Nepal relations:

  • The boundary dispute should be resolved on affirmative lines
  • Sensitizing Towards Nepal: India should engage more proactively with Nepal in terms of people-to-people engagement, bureaucratic engagement as well as political interactions.
  • Investments from India


Insta Link:

India Nepal Relations

Prelims Link: UPSC 2016

Consider the following pairs:

Community sometimes mentioned in the newsIn the affairs of

Which of the pairs given above is/are correctly matched?

(a) 1 and 2
(b) 2 only
(c) 2 and 3
(d) 3 only

Ans: (c)

Mains Link:

Q. The Nepal-India relationship has never been free of controversy as the perspectives of both sides are yet to change, in this context discuss the need for recalibrating their ties.