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In News
- Recently the Communist Party of Nepal (Maoist Centre) chairman Pushpa Kamal Dahal ‘Prachanda’ was appointed as the new Prime Minister of Nepal for the third time.
More about the news
- About the new PM:
- Prachanda led the decade-long armed struggle from 1996 to 2006 that ultimately ended with the signing of the Comprehensive Peace Agreement in November 2006.
- Relations with India:
- He has in the past said a new understanding with India needed to be developed on the basis of ‘changed scenario’ in Nepal and after addressing all outstanding issues, like revision of the 1950 Friendship Treaty and resolving Kalapani and Susta border disputes.
Issues regarding the treaty of Peace and Friendship of 1950
Kalapani border issue
Susta Border disputes
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India-Nepal Relations
- India & Nepal share close and friendly relations characterised by age-old historical and cultural linkages, open borders and deep-rooted people-to-people contacts.
- Sharing borders:
- The country shares a border of over 1,850 km with five Indian states — Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand.
- Land-locked Nepal relies heavily on India for the transportation of goods and services.
- Trade and economic ties:
- India remains Nepal’s largest trade partner, with bilateral trade crossing US$ 7 billion in FY 2019-20. India provides transit for almost the entire third-country trade of Nepal.
- India’s export to Nepal has grown over 8 times in the past 10 years while exports from Nepal have almost doubled. Despite the difficulties due to the pandemic, India ensured uninterrupted flow of trade and supplies to Nepal.
- Nepal is India’s 11th largest export destination, up from 28th position in 2014.
- In FY 2021-22, it constituted 2.34% of India’s exports. Infact exports from India constitute almost 22% of Nepal’s GDP.
- India remains Nepal’s largest trade partner, with bilateral trade crossing US$ 7 billion in FY 2019-20. India provides transit for almost the entire third-country trade of Nepal.
- Development Partnership:
- Financial and technical assistance:
- GoI provides substantial financial and technical assistance to Nepal for the implementation of large development and infrastructure and connectivity projects, as well as small development projects/high-impact community development projects in key areas of education, health, irrigation, rural infrastructure, livelihood development, etc. all across the country.
- The ‘New Partnership in Agriculture’:
- It was announced in April 2018, which focuses on collaborative projects in Agriculture, Education and R&D.
- Cross-border railway links:
- India is providing financial and technical assistance for construction of two broad gauge cross-border railway links viz Jayanagar-Bardibas and Jogbani-Biratnagar.
- India-Nepal Rail Services Agreement (RSA):
- India and Nepal signed a Letter of Exchange (LoE) to the India-Nepal Rail Services Agreement (RSA), which enabled all authorised cargo train operators including private container train operators to carry Nepal’s container and other freight.
- Mahakali River bridge:
- Recently, a MoU was signed between India and Nepal for the construction of a motorable bridge across the Mahakali River connecting Dharchula (India) with Darchula (Nepal), under Indian grant assistance.
- Financial and technical assistance:
- Operation Maitri & post-earthquake reconstruction assistance:
- In the wake of the 2015 earthquake in Nepal, GoI was the first responder and carried out its largest disaster relief operation abroad (Operation Maitri).
- India extended US$ 1 billion to Nepal as part of its long-term assistance for post-earthquake reconstruction in housing, education, health and culture heritage sectors.
Source: TH
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