Indo-Nepalese relations
Encyclopedia
Relations between India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

 and Nepal
Nepal
Nepal , officially the Federal Democratic Republic of Nepal, is a landlocked sovereign state located in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India...

are close yet fraught with difficulties stemming from geographical location, economics, the problems inherent in big power-small power relations, and common ethnic, linguistic and cultural identities that overlap the two countries' borders. New Delhi
New Delhi
New Delhi is the capital city of India. It serves as the centre of the Government of India and the Government of the National Capital Territory of Delhi. New Delhi is situated within the metropolis of Delhi. It is one of the nine districts of Delhi Union Territory. The total area of the city is...

 and Kathmandu initiated their intertwined relationship with the 1950 Indo-Nepal Treaty of Peace and Friendship‎ and accompanying letters that defined security relations between the two countries, and an agreement governing both bilateral trade and trade transiting Indian soil. The 1950 treaty and letters stated that "neither government shall tolerate any threat to the security of the other by a foreign aggressor" and obligated both sides "to inform each other of any serious friction or misunderstanding with any neighboring state likely to cause any breach in the friendly relations subsisting between the two governments." These accords cemented a "special relationship" between India and Nepal that granted Nepal preferential economic treatment and provided Nepalese in India the same economic and educational opportunities as Indian citizens. Jayant Prasad
Jayant Prasad
Jayant Prasad was born on June 5, 1952 and educated in Delhi University and Jawaharlal Nehru University. After lecturing on modern Indian history for two years at St...

 is India's ambassador to Nepal.

1950- 1970

In the 1950s, Nepal welcomed close relations with India, but as the number of Nepalese living and working in India increased and the involvement of India in Nepal's economy deepened in the 1960s and after, so too did Nepalese discomfort with the special relationship. Tensions came to a head in the mid-1970s, when Nepal pressed for substantial amendments in its favor in the trade and transit treaty and openly criticized India's 1975 annexation of Sikkim
Sikkim
Sikkim is a landlocked Indian state nestled in the Himalayan mountains...

 which was considered as part of Greater Nepal
Greater Nepal
Greater Nepal is a concept referring to the state of Nepal extending beyond present boundaries to include territories ceded to the British East India Company under the Sugauli Treaty that ended the Anglo-Nepalese War in 1814–16...

. In 1975 King Birendra Bir Bikram Shah Dev
Birendra of Nepal
Birendra Bir Bikram Shah Dev was a King of Nepal. The son of King Mahendra, whom he succeeded in 1972, he reigned until his death in the 2001 Nepalese royal massacre...

 proposed that Nepal be recognized internationally as a zone of peace; he received support from China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

 and Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...

. In New Delhi's view, if the king's proposal did not contradict the 1950 treaty an extension of nonalignment, it was unnecessary; if it was a repudiation of the special relationship, it represented a possible threat to India's security and could not be endorsed. In 1984 Nepal repeated the proposal, but there was no reaction from India. Nepal continually promoted the proposal in international forums and by 1990 it had won the support of 112 countries.

1970- 1980

In 1978 India agreed to separate trade and transit treaties, satisfying a long-term Nepalese demand. In 1988, when the two treaties were up for renewal, Nepal's refusal to accommodate India's wishes on the transit treaty caused India to call for a single trade and transit treaty. Thereafter, Nepal took a hard-line position that led to a serious crisis in India-Nepal relations. After two extensions, the two treaties expired on March 23, 1989, resulting in a virtual Indian economic blockade of Nepal that lasted until late April 1990. Although economic issues were a major factor in the two countries' confrontation, Indian dissatisfaction with Nepal's 1988 acquisition of Chinese weaponry played an important role. Treaties and letters exchanged in 1959 and 1965, which included Nepal in India's security zone and precluded arms purchases without India's approval. India linked security with economic relations and insisted on reviewing India-Nepal relations as a whole. Nepal had to back down after worsening economic conditions led to a change in Nepal's political system, in which the king was forced to institute a parliamentary democracy. The new government sought quick restoration of amicable relations with India.

1990s

The special security relationship between New Delhi and Kathmandu was reestablished during the June 1990 New Delhi meeting of Nepal's prime minister Krishna Prasad Bhattarai
Krishna Prasad Bhattarai
Krishna Prasad Bhattarai was a Nepalese political leader. As a leader of the Nepali Congress Party, he made his position by transitioning Nepal from an absolute monarchy to a democratic multi-party system.Bhattarai was twice the Prime Minister of Nepal, once heading the Interim Government from 19...

 and Indian prime minister V.P. Singh. During the December 1991 visit to India by Nepalese prime minister Girija Prasad Koirala
Girija Prasad Koirala
Girija Prasad Koirala was a Nepalese politician and the President of the Nepali Congress, a major political party. He was Prime Minister of Nepal for four times, serving from 1991 to 1994, 1998 to 1999, 2000 to 2001, and from 2006 to 2008; he was also Acting Head of State from January 2007 to July...

, the two countries signed new, separate trade and transit treaties and other economic agreements designed to accord Nepal additional economic benefits.

Indian-Nepali relations appeared to be undergoing still more reassessment when Nepal's prime minister Man Mohan Adhikary visited New Delhi in April 1995 and insisted on a major review of the 1950 peace and friendship treaty. In the face of benign statements by his Indian hosts relating to the treaty, Adhikary sought greater economic independence for his landlocked nation while simultaneously striving to improve ties with China.

21st Century

Nepal remains poor and deprived in 21st century while India has acquired a central place in the world with a very high development rate.In 2005, after King Gyanendra took over, Nepalese relations with India soured. However, after the restoration of democracy
Democracy
Democracy is generally defined as a form of government in which all adult citizens have an equal say in the decisions that affect their lives. Ideally, this includes equal participation in the proposal, development and passage of legislation into law...

, in 2008, Prachanda
Prachanda
Puspa Kamal Dahal ; born Chhabilal Dahal on 11 December 1954, also known as Prachanda ]]. Prachanda led CPN as it launched an insurgency on 13 February 1996. In 2008 the ensuing civil war culminated in the overthrow of the Shah dynasty in favor of a communist...

, the Prime Minister of Nepal, visited India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

, in September 2008. He spoke about a new dawn, in the bilateral relations, between the two countries. He said, "I am going back to Nepal as a satisfied person. I will tell Nepali citizens back home that a new era has dawned. Time has come to effect a revolutionary change in bilateral relations. On behalf of the new government, I assure you that we are committed to make a fresh start." He met Indian Prime minister, Manmohan Singh
Manmohan Singh
Manmohan Singh is the 13th and current Prime Minister of India. He is the only Prime Minister since Jawaharlal Nehru to return to power after completing a full five-year term. A Sikh, he is the first non-Hindu to occupy the office. Singh is also the 7th Prime Minister belonging to the Indian...

, and Foreign Minister, Pranab Mukherjee
Pranab Mukherjee
Pranab Kumar Mukherjee is the current Finance Minister of India and leader of the current Lok Sabha.Mukherjee is a senior member of the Cabinet Committees on Economic Affairs, Infrastructure, Parliamentary Affairs, Political Affairs, Prices, Security, Unique Identification Authority of India,...

. He asked India to help Nepal
Nepal
Nepal , officially the Federal Democratic Republic of Nepal, is a landlocked sovereign state located in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India...

 frame a new constitution, and to invest in Nepal's infrastructure, and its tourism industry.

In 2008, Indo-Nepali ties got a further boost with an agreement to resume water
Water
Water is a chemical substance with the chemical formula H2O. A water molecule contains one oxygen and two hydrogen atoms connected by covalent bonds. Water is a liquid at ambient conditions, but it often co-exists on Earth with its solid state, ice, and gaseous state . Water also exists in a...

 talks after a 4 year hiatus. The Nepalese Water Resources Secretary Shanker Prasad Koirala said the Nepal-India Joint Committee on Water Resources meet decided to start the reconstruction of breached Kosi embankment
Kosi embankment
The Kosi embankments were built in late 1950s to retain the Kosi River which is a transboundary river between Nepal and India and is one of the largest tributaries of the Ganges....

 after the water level goes down. During the Nepal PM's visit to New Delhi
New Delhi
New Delhi is the capital city of India. It serves as the centre of the Government of India and the Government of the National Capital Territory of Delhi. New Delhi is situated within the metropolis of Delhi. It is one of the nine districts of Delhi Union Territory. The total area of the city is...

 in September the two Prime Ministers expressed satisfaction at the age-old close, cordial and extensive relationships between their states and expressed their support and cooperation to further consolidate the relationship.

The two issued a 22-point statement highlighting the need to review, adjust and update the 1950 Treaty of Peace and Friendship
1950 Indo-Nepal Treaty of Peace and Friendship
The Indo-Nepal Treaty of Peace and Friendship of 1950 is a bilateral treaty between Nepal and India establishing a close strategic relationship between the two South Asian neighbors. The treaty was signed on July 31, 1950 by the then-Prime Minister of Nepal Mohan Shamsher Jang Bahadur Rana and...

, amongst other agreements. India would also provide a credit line of up to 150 crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....

 rupees to Nepal to ensure uninterrupted supplies of petroleum products, as well as lift bans on the export of rice, wheat, maize, sugar and sucrose for quantities agreed to with Nepal. India would also provide 20 crore as immediate flood relief.
In return, Nepal will take measures for the "promotion of investor friendly, enabling business environment to encourage Indian investments in Nepal."

In 2010 India extended Line of credit worth $ 250 millions & 80,000 tonnes of foodgrains.Furthermore, a three-tier mechanism at the level of ministerial, secretary and technical levels will be built to push forward discussions on the development of water resources between the two sides. Politically, India acknowledged a willingness to promote efforts towards peace in Nepal. Indian External affairs minister Pranab Mukherjee promised the Nepali Prime Minister Prachanda
Prachanda
Puspa Kamal Dahal ; born Chhabilal Dahal on 11 December 1954, also known as Prachanda ]]. Prachanda led CPN as it launched an insurgency on 13 February 1996. In 2008 the ensuing civil war culminated in the overthrow of the Shah dynasty in favor of a communist...

 that he would "extend all possible help for peace and development."http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=&id=c4a73df7-358d-4aab-87f0-39f8aee6c811&&Headline=India+to+help+restore+peace+in+Nepal

In 2008, the Bollywood film Chandni Chowk to China
Chandni Chowk To China
Chandni Chowk to China , shortened as CC2C is a Hindi film which released on 16 January 2009. It is directed by Nikhil Advani and stars Akshay Kumar and Deepika Padukone in the lead roles, with Hindi cinema veteran Mithun Chakraborty and Hong Kong action cinema veteran Gordon Liu among the co-stars...

was banned in Nepal, because of a scene suggesting the Gautama Buddha
Gautama Buddha
Siddhārtha Gautama was a spiritual teacher from the Indian subcontinent, on whose teachings Buddhism was founded. In most Buddhist traditions, he is regarded as the Supreme Buddha Siddhārtha Gautama (Sanskrit: सिद्धार्थ गौतम; Pali: Siddhattha Gotama) was a spiritual teacher from the Indian...

was born in India. Some protesters called for commercial boycott of all Indian films.
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