PM Visit to Lumbini: India-Nepal Relations

In News

• The Prime Minister of India is on a trip to Nepal to further strengthen bilateral relations between the two countries.

About

• The PM visited Lumbini on the eve of Budhha Purnima, citing the commonalities of faith and traditions of both sides.
• He along with the Prime Minister of Nepal laid the foundation of the India International Centre for Buddhist Culture and Heritage in the Lumbini Monastic Zone. 
• Both the PMs discussed various issues and inked Notable MoUs and Agreements.

Notable MoUs and Agreements inked

• Arun-4 hydropower project:  
  • Satluj Jal Vidyut Nigam (SJVN) Ltd and the Nepal Electricity Authority (NEA) inked a pact for the development and implementation of 490.2 megawatts Arun-4 hydropower project. 
  • The project is expected to generate electricity for Nepal, India as well as Bangladesh and has the potential to emerge as a major source of energy in the south Asia region. 
  • The SJVN has a 51% share and the NEA has 49% of the project. 
• Dr. Ambedkar Chair for Buddhist Studies: 
  • Agreement between Indian Council of Cultural Relations (ICCR) and Lumbini Buddhist University on the establishment of Dr. Ambedkar Chair for Buddhist Studies.
• ICCR Chair of Indian Studies: 
  • Memorandum of Understanding between Indian Council of Cultural Relations (ICCR) and CNAS, Tribhuvan University on the establishment of ICCR Chair of Indian Studies.
• Joint degree program at Master’s level: 
  • Letter of Agreement (LoA) between Kathmandu University (KU), Nepal and Indian Institute of Technology (IITM), India.

India-Nepal Relations

• Historical Relations:

• Multifaceted linkages: India has always shared close ties with Nepal because of historical, geographical, cultural and economic linkages.
• Religions: Both countries share Hinduism and Buddhism with Buddha’s birthplace Lumbini in Nepal.
• Roti-Beti ka Rishta: Both countries share an open border with the unhindered movement of citizens. People of the two countries have close bonding through marriages and familial ties. 
• India-Nepal Treaty of Peace and Friendship of 1950:The treaty is the foundation of the relationship between both countries.

• Economic Relations:

• India is Nepal’s largest trade partner and the biggest source of foreign investments. India also provides trade transit to Nepal.

• Connectivity:

• Many Connectivity projects have been taken up to augment people-to-people contact driving economic growth and development.
• MOUs have been signed between both governments for laying an electric rail track linking Kathmandu with Raxaul in India.
• India is involved in developing inland waterways for the movement of cargos within the framework of trade and transit arrangements, providing additional access to the sea to Nepal.

• Defence Cooperation:

• India provides  assistance to Nepal Army in terms of training and modernizing its infrastructure.
• Esteemed Gorkha Regiment in the Indian Army also draws its soldiers from Nepal.
• Both countries have a joint military exercise named Surya Kiran.

• Cultural Relations:

• Efforts have been taken in the area of art & culture, academia and media to synergise the efforts between the stakeholders of the two nations.
• Both countries have inked three sister-city agreements for Kathmandu-Varanasi, Lumbini-Bodhgaya and Janakpur-Ayodhya.

• Disaster relief:

• Nepal is susceptible to earthquakes, and floods as it lies in the ecologically sensitive zone. India has always been the first country to come up with humanitarian aid.

• Multilateral Platforms: Both countries are members of the same multilateral forums; 

• BBIN (Bangladesh, Bhutan, India, and Nepal)
• BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation)
• Non-Aligned Movement
• SAARC (South Asian Association for Regional Cooperation)

Irritants in Relationship

• China’s Role:

• India has had long historical ties with Nepal and its citizens receive near Indian treatment (they can sit in Civil services exam, get into Indian Military). But of late, Nepal started getting away from India because of the internal politics of the country. China filled the vacuum with investments, aid and loans.
• Nepal is China’s partner in its Belt and Road Initiative (BRI), which is geo-strategically a threat to India.
• There is a threat of Nepal gradually transitioning to a satellite state of China from a buffer state between India and China. 

• Border Dispute:

• Release of a new political map claiming Kalapani, Limpiyadhura and Lipulekh of Uttarakhand as part of Nepal’s territory created a furore in the Indian establishment. 
• The Susta region of Bihar was also seen on the Nepal side of the map. India strongly reacted to the claim and cited it against the Treaty of Sagauli.

Way Forward

• India should cautiously tread the diplomatic path to resolve the boundary dispute with Nepal institutionally so that in future too such issues do not arise.
• India should be more proactive to scale up the people to people contact and enhance the engagements of civil society, academia and bureaucracy.
• The projects related to the hydropower, and education sector along with infrastructure projects like electric trains between the two countries can counter the Chinese BRI.
• India should not be seen as flexing muscle and giving out big brotherly treatment by its smaller neighbours. It should be seen by them as equal partners in regional growth.
• Small differences shall not snowball into disputes and both the countries should resolve the differences amicably.