Ranjit Rae, former Indian Ambassador to Nepal, says this relation is characterized by shared civilization: “[Nepali and Indian] societies have been nurtured and nourished by the same mountains and rivers.”
Open borders, he says, has led to a seamless movement of people, goods and services, contributing to fraternal relationships between the two countries and their peoples. Despite fluctuating relations at the political level, the development partnership between the two countries is ever-expanding. The key areas of partnership between Nepal and India are connectivity, health, education, energy, education, defense and infrastructure projects. Nepal occupies a special place in India’s ‘neighborhood first’ policy. In his Independence Day message, Indian Ambassador to Nepal Naveen Srivastava spoke of how common cultural tradition remains the pillar of development partnership between India and Nepal. Lok Raj Baral, former Nepali ambassador to India, agrees that Nepal-India bond is special, one that cannot be disturbed by disagreements at the political level. There has been no substantive change in our bilateral relations in the past 75 years, he notes. “The substance and structure of our relationship remains the same,” he adds. CPN-UML leader Deepak Prakash Bhatta says it is the people-to-people connections that keep the ties between Nepal and India strong even in the face of disagreements between the two governments. For example, the 1950 Peace and Friendship Treaty has long been a bone of contention between them, for example and the issue of its amendment has cropped up time and again, to no avail. Making changes to the bilateral arrangements, which have been in place for the past 75 years was among the recommendations made by the Eminent Persons’ Group (EPG), a joint body of the two countries formed to update bilateral treaties. But India has yet to officially accept the report to take matters forward. Many doubt India will ever consider reviewing its treaties with Nepal. Bhatta says that in all negotiations with India since 1950, Nepal’s position has always been weak, which has led to unequal agreements. There are also boundary disputes in Kalapani, Lipulekh and Limpiyadhura areas. The issue is being discussed bilaterally, but without much progress. But former ambassador Rae believes issues between the two countries can be resolved through dialogue and negotiation “while keeping in mind the concerns and interests” of both the sides. India’s sustained influence over Nepal’s internal politics has also been a widely discussed and criticized subject. Yes, India had supported Nepali political parties during major political movements, but it is also true that New Delhi has sometimes tried to dictate Nepal’s internal politics. Rae says India has always backed the aspiration of the Nepali people for a multiparty democracy. He disagrees that India meddles in Nepal’s internal affairs. “India has been closely associated with each phase of Nepal’s political and economic transformation,” he says. From the Delhi pact of 1950 to the first Janandolan of 1989-90, Rae points out, “from the peace process that began in 2005 to an agreement between Nepal government and Madhes-based parties in 2007.” Nepal has always tried to decrease its dependence on India, mainly on trade, and thereby temper India’s clout. Baral, former Nepali ambassador to India, says Nepal adopted the policy of trade diversification but instead of boosting domestic productivity it led to further increase in imports. Nepal’s economy became weak as a result and dependence on India only increased. Nepal has also signed the Transit and Transport Treaty with China but, again, to no visible benefit for the Himalayan country. UML leader Bhatta partly blames India for the swelling trade imbalance. “As a close neighbor India has a certain responsibility to settle tariff and non-tariff barriers along with offering quotas for Nepali products—which it has not done.” A lot has changed in the past seven decades. India’s influence in South Asia has waned with the rise of China, another close neighbor of Nepal. China and India are the two major players in South Asia, as well as regional rivals, and each wants Nepal on its side. A senior Indian government official says New Delhi’s major concern is China’s growing influence in Nepal’s internal politics. The historical Nepal-India ties stand at a crossroads, particularly given the tense relations between India and China. Of late, the US has also increased its activities in Nepal in a bid to counter China. India is closely watching the growing US-China competition in Kathmandu. But Rae is optimistic “The future of Nepal-India relations,” Rae adds, “will certainly be better than what they were in the past.”
