Asian Journal

Asian Research Consortium of Research in

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Asian Journal of Research in Social Sciences and Humanities
Vol. 8, No. 3, March 2018, pp. 133-139. Humanities
ISSN 2249-7315 www.aijsh.com
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DOI NUMBER: 10.5958/2249-7315.2018.00052.7
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India and Nepal Relations : An Analysis of Bilateral

Relationship through the Prism of History

Lubina Sarwar*

*Research Scholar,
Department of Political Science,
University of Kashmir,
Hazratbal, Srinagar, India.
janlubna87@gmail.com

Abstract

Nepal is a tiny landlocked country situated in a strategic location between two of the most powerful
Asian nations-China and India. The most important implication of its location and the crucial factor
influencing the formulation of its foreign policy is that a friendly or dependent Nepal is, for
strategic reasons, a necessity for both India and China. The evolving geopolitical environment in
Nepal is one of the most ponderous and crucial issues which needs immediate attention of the
Indian policymakers. This paper is an endeavor which will systematically analyse the relationship
between the two neighbours and highlight the complexities and changes in the relationship between
two countries since 1950 and its prospects in future.

Keywords: Foreign Policy, India, Nepal, Bilateral, Relations.

Introduction

The relationship between countries is not only guaranteed by formal treaties alone, but many other
elements and determinants shape inter-state relations.* The relationship between two neighboring
countries becomes more significant when they are not restricted to the political and geo-strategic
levels only, but also extends to cultural and ethnic ties between the people of the two countries.

*
Lok Raj Baral, „Nepal-India Relations Formal Treaty and Beyond‟, Think India Quarterly, New Delhi, Vol. 13, No. 4,
2010, p.174.
133
 Sarwar (2018). Asian Journal of Research in Social Sciences and Humanities,
Vol. 8, No.3, pp. 133-139.

Nepal and India fall under this category of relationship.† The relationship between India and Nepal
is unique; one indicator of this uniqueness is that for many centuries these two countries have
maintained largely peaceful and friendly links. They shared extensive trade relations in the ancient
and medieval eras.‡ Religion has also provided a strong and stable foundation for a relationship.
Cultural-social propinquity, geographical contiguity, and political proximity have created a
situation in which for ages the movement of people between India and Nepal has remained free
from restrictions. This freedom of movement had been gifted by the people to one another and is
not a fiat of the rulers, kingdoms in the ancient and medieval ages covered vast areas overlapping
territories which currently form parts of India and Nepal. This explains the movement of the
Sanskrit language, the Gupta script, and architectural design (with Hindu-Buddhist motifs) to
Nepal. Sanskrit appears to have been the language of the court in ancient days, whereas the
language of the masses in modern Nepal, viz, Newari derives 50 percent of its words from
Sanskrit.§

Nepal is landlocked by India on three sides south, east, west. These two South Asian neighbors not
only share1700km of completely open and accessible border without any natural barrier and free
movement of people and goods but both the countries also share the magnificent Himalayas that
have for centuries acted as barriers to the incoming influences and military adventures into India
from the north.**Nepal shares border with five Indian states- Sikkim, West Bengal, Bihar, Uttar
Pradesh, and Uttarakhand. †† It is a unique international border, comparable in several ways to
Canada‟s peaceful border with the United States. Nepalese and Indian citizens can move freely on
either side of the border without being subjected to any restriction. Towards the west, Mahakali
River separates Nepal from the Indian state of Uttar Pradesh, on the south, there is a 600-mile
boundary-line which runs over the Terai (low land) as they merge into the Gangetic plain of Uttar
Pradesh and Bihar,‡‡and on the eastern side, it is separated by Mechi River.§§ To get international
access via land outlet the nearest seaport to Nepal is 1,127 kilometers away in Calcutta, India.
Nepal could potentially use some of Bangladesh‟s ports, but Indian Territory separates Nepal from
Bangladesh. It is separated from Bangladesh by an approximately fifteen kilometer-wide strip of
India's state of West Bengal, and from Bhutan by the eighty-eight-kilometer-wide Sikkim, also an
Indian state. Such a confined geographical position is hardly enviable. Nepal is almost totally
dependent on India for transit facilities and access to the seathatis the Bay of Bengal-even for most
of the goods coming from China. There are hardly any natural barriers between India and Nepal
with the average height of the mountains on the border varying between 610 and 2,200 meters.
Rivers enter India from Nepal through valleys which have a lower height. Nepal„s Terai region
merges into India‟s Gangetic plains and lies approximately 215 meters above the sea level. In
contrast to this 1700 km long India-Nepal border, the 1,414 km long Nepal-China border has
mountains with an average height of 6,100 meters, harsh climate and terrain conditions make

†
NalinikantJha and Pramod Kumar, India and Nepal, Imperatives of a good neighborliness, in South Asia in 21st Century
(ed.), South Asian publishers Pvt Ltd, 2003. p.113.
‡
Jahar Sen, Indo- Nepal Trade, Firma KLM, Calcutta, 1977. pp. 15-17.
§
Shriman Narayan, India and Nepal; An Exercise in open Diplomacy, Orient Paper Backs, Delhi, 1971.pp. 22-23.
**
Lok Raj Baral, „India and Nepal relations; continuity and change‟, Asian Survey, Vol. 32, No. 9, September 1992, p.815.
††
Pramodkumar, „India-Nepal Eco-Political Relations; Retrospect and Prospect‟, World Focus, New Delhi; 2012, p.49.
‡‡
Anil Kumar Jha, „Indo-Nepal foreign policy‟, Read publishing House, New Delhi, 2013, p.47.
§§
Buddhi N. Shrestha, „The natural environment and shifting borders of Nepal‟, Eurasia Border Review, Volume-4, No-2,
2013, p. 2.
134
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Vol. 8, No.3, pp. 133-139.

Nepal‟s border with China not really attractive for human habitation. There cannot thus be an easy
movement of people from Nepal to China. Whereas movement is very easy (and economically
profitable) to the vast population centered on the Indian border.*** The northern border of Nepal
with Tibet Autonomous Region runs through towering ridges of the Himalaya Mountains including
world's highest peak - Mt. Everest, dividing it in half between the two countries.†††Consequently,
Nepal suffers from two geographical handicaps: first it is landlocked, and second it is mountainous.
Because of this situation, this has remained one of the potential key areas of interest in Nepal„s
relations with India.

Nepal and India enjoy very close comprehensive and multidimensional relations, since centuries
they have maintained peaceful and cordial relations.‡‡‡ Besides other factors, Religion has provided
a stable foundation for strong ties between these two countries,§§§ as Nepal was the only official
Hindu kingdom in the world (till 2006). **** Nepal and India have a 2,500-year-long recorded
economic, religious, cultural and political history of friendship. Nepal served as a transit in the
trade with Tibet, Caucasian region, Mongolia and Russia, the Kathmandu Valley and other towns
had developed as dry ports in ancient times. Former Prime Minister of Nepal Babu Ram Bhattarai
has beautifully summed up the relation between India and Nepal in following words;

“Nepal and India share a unique relationship. Nepal is sandwiched between two huge states of India
and China but we are virtually India-locked, as we have an open border on three sides. Most of our
socio-economic interactions take place with India. Two-thirds of our annual trade is with India,
while only 10 percent is with China. Given this historic tilt towards India, our bilateral relationship
is unique.”††††

However, it will be convenient to study India Nepal relations in phases.

1. Phase I - from 1950-1955

The first phase in India-Nepal relations is marked from 1950 to 1955.This formative phase is
marked by convergence of security and economic interests which was in fact the continuation of the
existing historical ties and special relations between the two countries during the British period.
After the independence of India both countries signed „The Treaty of Peace and Friendship‟ in 1950
which forms the bedrock of bilateral relations between the two countries. This treaty laid the
foundation of special relationship as it goes beyond the formal diplomatic standard of relationships
and seeks to concretize a magnificent vision handed down from centuries. The treaty allows for the
free movement of people and goods between the two nations and a close relationship and
cooperation on matters of defense and foreign affairs.‡‡‡‡ While India values the 1950 Treaty as
certificate of special relationship, the treaty on the other hand has become unpopular in many

***
SangeetaThapliyal, „Movement of population between India and Nepal Emerging challenges‟, Strategic Analysis, Vol. 23,
No. 5, 1999, p.778.
†††
Mateusz C wetler, „Between Elephant and the Dragon - Geostrategic situation of Nepal‟, Institute of Foreign Policy
Studies, No.11, 2012.
‡‡‡
Jahar Sen, „Indo-Nepal Trade‟, KLM Firma Calcutta, 1977, p.15.
§§§
Jayanta Kumar Ray, „India‟s Foreign Relations 1947-2007‟, Avantika Printers Pvt. Ltd., New Delhi, 2011, p. 410.
****
V N Khanna, „Foreign Policy of India‟, Vikas Publishing House Pvt. Ltd., 2003, p.139.
††††
BaburamBhattari, „A Vision for Nepal-India Relations‟, The Hindu, October 19, 2011.
‡‡‡‡
Surya. P. Subedi, „Dynamics of Foreign Policy and Law, A Study of Indo-Nepal Relations‟. Op.cit, pp. 24-25.
135
 Sarwar (2018). Asian Journal of Research in Social Sciences and Humanities,
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segments of Nepal which often regards it as a breach of their sovereignty. The relationship in this
period was also shaped by King Tribhuvan‟s pro-Indian approach. During this phase of relationship
the two countries had developed a cordial and friendly atmosphere which was based on the
collective vision of J L Nehru and King Tribhuvan Shah. India's influence over Nepal increased
throughout 1950‟s. As a follow up measure of 1950 Treaty, India and Nepal framed The
Citizenship Act of 1952 which allowed Indians to immigrate to Nepal and acquire Nepalese
citizenship with ease and Nepalese were allowed to migrate freely as well. Also in 1952, an Indian
military mission was established in Nepal. In 1954 a memorandum was signed for the joint
coordination of foreign policy, also in the same year Indian security posts were established in
Nepal's northern frontier.§§§§ In all these developments the two countries could not avoid certain
irritants slowly creeping in their relationship which later on became potent factors of deterioration
between the two. In nutshell this phase was marked by the convergence of security and economic
perceptions between the two countries albeit several contradictions.

2. Phase Second - 1956 to 1970

The second phase began in late 1956 to 1970 and is marked by divergence in security perception
and growing proximity between China and Nepal. After the death of King Tribhuvan Shah in 1955,
King Mahendra succeeded to the throne. King Mahendra continued to pursue a non-aligned policy
begun during the reign of Prithvi Narayan Shah (founder of Nepal) in the mid-eighteenth century.
In the late 1950s and early 1960s, Nepal voted differently from India in the United Nations unless
India's basic interests were involved. The two countries consistently remained at odds over the
rights of landlocked states to transit facilities and access to the sea. King Mahendra adopted an
approach which was aimed to minimize Nepal‟s dependence on India. So for this reason Nepal
gradually became closer to other countries like China and Pakistan to downplay Indian position and
influence in Nepal. Nepal became highly dissatisfied with India's growing influence and tilt
towards China was initiated to counterweight India.***** Following the 1962 Sino-Indian border war
the relationship between Kathmandu and New Delhi softened significantly. As a goodwill gesture
India suspended its support to India-based Nepalese opposition forces and Nepal in turn extracted
several concessions, including transit rights with other countries through India and access to Indian
markets. With Indo-China war of 1962, the China factor became more visibly important in India-
Nepal relations. The growing Nepal-China closeness became a cause of concern for India. China
and Nepal signed a treaty of peace and friendship and many developmental projects were initiated
with exclusively Chinese assistance. China built Kathmandu-Kothari Road in 1965 which provided
a direct strategic link between China and Nepal through Tibet. There were several developments
from Indian side also as there was frequent exchange of visits between high officials of India and
Nepal aimed at emphasizing the long-standing friendship, historical ties and mutual interests of the
two countries. India„s prime concern during this period was its security interests especially in the
context of increasing tension in Sino-Indian relations, the various events in this process eventually
led to a great deal of misunderstanding between India and Nepal. It aroused that aspect of Nepalese
psyche which was trying to move away from Indian influence in order to take an independent stand

§§§§
Nalini Kant Jha and Pramod Kumar, „India and Nepal, Imperatives of a good neighborliness‟ in „South Asia in
21stcentury (ed.), South Asian publishers pvt ltd, 2003, p.115.
*****
A Appadori and M S Rajan, „India‟s Foreign Policy and Relations‟, South Asian Publishers Pvt Ltd., New Delhi,1988,
p.164.
136
 Sarwar (2018). Asian Journal of Research in Social Sciences and Humanities,
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according to its perceived national interests. In all these India was able to conclude an Arms accord
in 1965 by which India won a monopoly on arms sales to Nepal. In 1969 relations between two
neighbours again became stressful as Nepal challenged the existing mutual security arrangement
and asked India for withdrawal of security check posts and liaison groups from border. India
grudgingly withdrew its military check posts and liaison group. The demand for the end of „special
relationship and the beginning of „equal relationship‟ gained momentum during 1960.†††††

3. Phase Third - 1970 to 1980

The third phase began in late 1970‟s to 1980. King Birendra succeeded to the throne after King
Mahendra‟s death in 1972. Like King Mahendra his son, King Birendra wanted to minimize Indian
influence largely as he saw it supportive to pro-democratic forces in the Kingdom or at the very
least those drawing inspiration from India. On the other hand, China supported the autocratic
regime in Nepal as China for its part saw nothing objectionable in an autocratic regime and was
more than willing to lend support to Nepali monarchy. Further, developments in Indian-Nepalese
relations occurred during late 1970‟s as India's credibility as a regional power had increased and
Nepal's vulnerability was reinforced by different major events particularly 1971 Indo-Soviet Treaty
of Peace Friendship and Cooperation, the 1971Indo-Pakistani War which led to the emergence of
an independent Bangladesh, merger of Sikkim into India in 1974 and India's nuclear tests in 1974.
Nepal adopted a vigilant policy of appeasement towards India as it was keen to fortify its economy
and to strengthen its position as an independent nation in the international system to play amore
active role in world affairs. In 1975 in his coronation address, King Birendra called for the
recognition of Nepal as a „Zone of Peace‟ proposal. This proposal was designed by Nepal to
maintain equidistance between India and China. As India regarded peace and security in Nepal
interlinked with the security of India, the then Indian government led by Indira Gandhi rejected the
idea and held that the King Birendra's proposal is contradictory to the 1950 treaty and merely an
extension of non-alignment. The relationship between the two nations remained stable during the
succeeding years till early 1980‟s except for some misunderstanding and communication gaps.
There were Indian aid and cooperation activities in areas such as road building, airport
construction, telecommunication, horticulture, agriculture, health, forestry, education etc.

4. Phase Fourth-1980 to 1990

India and Nepal became founding members of „South Asian Association for Regional Cooperation‟
(SAARC) which was established in 1985.This further strengthened the bilateral relations between
the two sides. But in late 1980‟s a change in the foreign policy of Nepal focused on reducing Indian
influence and for this King Birendra took certain steps like in 1987 it introduced work permit
system for Indians working in Nepal, even though the Nepalese nationals in India were treated at
par with the Indian citizens in matters of securing jobs and purchasing property in accordance with
the provisions of 1950 treaty and purchasing arms from China without consulting India all this led
to a rift between two neighbors. So whenin March 1989, the Nepal-India trade and transit
agreement came up for renewal. India's Prime Minister Rajiv Gandhi refused to extend the
agreement without Nepal‟s a prior agreement to meet India's commercial and defense concerns.

†††††
Shyam Shrestha, „The Maoist insurgency and Nepal-India Relations‟, Op.cit, p.170.
137
 Sarwar (2018). Asian Journal of Research in Social Sciences and Humanities,
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After both sides refused to back down India allowed the agreement to lapse and closed thirteen of
the fifteen border check posts that regulated most of Nepal's trade with the outside world leading to
an economic blockade. The blockade was a severe blow to Nepal because there were no other
reliable transit routes. After fifteen months of economic disruptions and diplomatic retaliations both
sides conciliated and reaffirmed the 1950 treaty and Kathmandu agreed not to purchase defense
items abroad without consulting New Delhi. King Birendra requested China to stop delivery of a
final shipment of air defense equipment. A swift turn in relations took place following the success
of the movement for the restoration of democracy in Nepal in early 1990.

5. Phase Fifth-1990 to 2000

The dawn of a new era of multiparty democracy in Nepal in 1990, opened a new era in India and
Nepal relations.‡‡‡‡‡ Both states re-established their security relationship in June 1990, both signed
many bilateral agreements like Mahakali treaty and Tanakpur Agreement in spite of many
differences in past. §§§§§ The two countries liberalized trade terms than ever before, Nepalese
products were made duty free and quota-free access to Indian markets.****** The exchange of visits
by leaders of both the states substantially improved relations between two states. †††††† But the rise
of Maoists in Nepal led to a rift between two. Nepal blamed India for supporting Maoists in Nepal,
although India denied the allegations. Later India supported fully Nepali government in fighting
against Maoists that India considered a threat to its security perceptions.

6. Phase Sixth -2000 to 2007

During this phase, Nepal was witnessing general resentment against the monarchy. With the
takeover of all powers by King Gyandera India put an arms embargo on Nepal to pressurize king
for the restoration of democratic forces. With the Indian intervention, the 12 point agreement was
concluded between Seven Party Alliance (SPA) and Maoists at New Delhi in November 2005 that
paved way for Comprehensive Peace Agreement that led to political stabilization and peaceful
reconciliation and establishment of democracy in Nepal. India fully supported the ongoing
democratic mass movement (Jana Andolan II). This substantially improved the status of India
Nepal relations.‡‡‡‡‡‡

7. Phase Seventh -2008 to 2014

During this phase a new beginning in relations started, India helped Nepal to conduct constituent
assembly elections. There was a frequent exchange of leadership visits from both the sides that
helped to serve as bonding agent of the bilateral relationship between two countries. An agreement
to resume water talksfurther boosted the relations.

‡‡‡‡‡
R Shola, „New Directions in Nepal India Relations‟,Nirmala Publications. New Delhi, 1995. P. 9.
§§§§§
ShahaRishikesh, „New Directions in Nepal India Relations‟, in BahadurKalim and Mahendra P. Lama –New
Perspectives on India-Nepal Relations. (Ed) HarAnand Publications, New Delhi, 1995. Pp. 71-72.
******
Srivastava,„C.B.P. –India and the World: Changing Scenario‟,KitabMahal, Allahabad, 2001, P 187.
††††††
R Shola, „New Directions in Nepal India Relation‟,Nirmala Publications. New Delhi, 1995. P.13.
‡‡‡‡‡‡
Sandra Dastradi, „India‟s foreign and security policy in south Asia; Regional power strategies‟, Routledge Publications
New York, 2012, p. 109.
138
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Further, during the Nepal PM's visit to New Delhi in September 2008, the two Prime Ministers
expressed satisfaction at the age-old close, cordial and extensive relationships between India and
Nepal. They further expressed their support and co-operation to further consolidate the relationship
and thus paved the way for the continuation of the friendly relations between the two countries.
India extended its support for the establishment of peace and development in Nepal. India and
Nepal relations were thus directed towards a smooth plane were no problem will be for the
establishment of a peaceful and congenial relationship. There were visits and counter visits that
cemented the bilateral relations deeply. In 2014 Indian Prime Minister Narender Modi visited
Nepal that was an important visit as after seventeen years any Indian prime minister paid an official
visit to Nepal. He addressed to the Constituent Assembly of Nepal. This was of historic importance.
He struck a chord when he said that India will not interfere in the internal affairs of Nepal as
previously India is blamed for. He further assured Indian role in the development of Nepal and
helping in the transition process. Thus seemed relations were going towards a stable direction.§§§§§§

8. Phase Eighth -2015 till now

The relations that seemingly were stirred up after Indian Prime Minister‟s visit to Nepal and India‟s
help to Nepal after the earthquake, but got shoddier when Nepal adopted constitution in September
2015. India showed its resentment with the constitution that was not liked by Nepal. Nepal blamed
India for interfering with the sovereignty of Nepal. Madhesis ******* put a blockade on India-Nepal
border and Nepal blamed India for unofficial blockade, though India denounced it but relations
between two got soared. Nepal viewed blockade as an illustration of India‟s strategic use of
economic pressure to pursue political ends in Nepal.†††††††The relations thawed after the Nepalese
Prime Minister, Mr. K.P. Sharma Oli made a State visit to India in February 2016. Thereafter India
and Nepal are moving smoothly towards developing their relations based on democratic values and
sovereign equality.

Conclusion

India and Nepal enjoy very close comprehensive and multidimensional relations since centuries.
Besides other factors Religion has provided a stable foundation for strong ties between these two
countries. Geographically Nepal falls under the Indian Sub-continent. It constitutes a narrow strip
across the northern frontier of India. Given its location in the southern sides of the Himalaya, Nepal
is virtually India-locked, dependent on India for access to the sea and the international market. No
doubt Nepal has a long border with China‟s Tibet region but the border terrain between Nepal and
China makes it too difficult for all practical purposes. Because of these geographical factors Nepal
is dependent on India for its trade and also for international trade and transit matters. From the
present study it can be concluded that India‟s relations with Nepal are close but there is an extreme
sense of distrust, insecurity and perceived domination by India which has slowed down the pace of
understanding and progress.

§§§§§§
Ibid.
*******
Madhesi are the persons of Indian origin settled in terai region of Nepal. Madhesis constitute about one third of
country‟s population. The madhesis were unsatisfied with their inclusion and representation in constitution and they were
protesting against it.
†††††††
RishikaChahun, „The road ahead of India Nepal relations‟, Business line June 2017
139