India & Nepal
Relations in New Light
India - Nepal relations are ‘unique’ for reasons ranging from
geographical contiguity to close cultural ties, and extensive institutional and
social relationships. Cultural, economic and geographical factors along with the
common bond of a shared religion have had a great influence on bilateral
relations. As two sovereign nations,
both India and Nepal are naturally guided by their national interests.
These interests are related to cultural, economic and security areas. Despite
some turbulence in the past, India- Nepal relations have remained close, stable
andmutually beneficial. Cultural bond provides moral strength to the
relationship, while respect for each
others political identity as independent, sovereign countries provides the
political base for meaningful interaction. Nepal recognizes and admires India’s
position as the largest democracy and an emerging economic and strategic
power which is striving to find its rightful place in the comity of nations.
article-india & nepal It
appreciates the support accorded to Nepal in the spirit of Panchsheel. There
exist vast areas of complimentarity and mutuality of benefits between the two
countries.
Economic reforms in both countries have opened up new avenues of cooperation in
trade and commerce, investment and joint collaboration projects. Nepal can
benefit tremendously from such bilateral interaction. Greater creativity is
required, however, to take full advantage of the complimentarity of economies
between the two countries. Security issues are the most vital questions that
determine the tenor and content of the relationship between the two countries at
present. It determines the trust, endurance and sustainability of the
relationship. There have been strong commitments to each other in the past like
assurances not to allow their territory to be used for undertaking unlawful
activities against the other. Formation of governmental committees and
frequent consultations aim at bettering the security scenario. Despite these
efforts, perceptions about Nepal not being adequately appreciative of India’s
sensitivities has caused sufferings to Nepal in the form of criticism and lack
of help at times. As a result, mutual trust and confidence are sometimes shaken
and put to stress. Promoting regional cooperation is another way of
indirectly improving bilateral relations. A few areas marked for the purpose
include trade and transit, energy, water resources, investment and combating
terrorism. The biggest problem troubling the Himalayan kingdom is the
Maoist insurgency. There are diverse opinions depending upon ones vantage point
about where the blame lies for the present crisis. A number of measures are
urgently needed to tackle the present situation. Security related establishments
have to be strengthened to tackle the rising tide of Maoist attacks and to
maintain the fabric of the State. But this should not be misconstrued as
remilitarization of Nepal. The move is solely for the
purpose of facing the Maoist threat forcefully and adequately. The Maoist
problem is not a problem of Nepal alone. It has ramifications on India as well
in the form of growing linkages with the Naxals in India and even Bangladesh.
Ever since the confrontation between the Maoist-led government and the Nepal
Army in 2009 led to the resignation of Mr. Prachanda as Prime Minister, India
has been dead-set against the Maoists leading any kind of coalition government
in Kathmandu. Indeed, the officials running India’s Nepal policy made it clear
the Maoists should ideally not even be allowed to join a coalition headed by
someone else, that they be “punished” — a word Indian diplomats in Kathmandu
have used with their counterparts from other countries — for having dared to
presume they could call the shots in the wake of their victory in the April 2008
CA elections. During the wasted year of Madhav Kumar Nepal’s premiership, which
India backed to the hilt, New Delhi hoped the Maoists would either split or come
under pressure to accept a unilateralist reading of theTwelve Point
Understanding and theComprehensive
Peace Agreement — two documents which paved the way for the constitutional and
political transformation of Nepal. Though the Maoists see themselves as creating
a new mainstream, India wants them to stick to the old mainstream and abandon
the hope of restructuring the Nepali state and its institutions in any
fundamental way. This Maoists are not prepared to do.
Historical Background
Nepal’s trade with India continued till 1923 without having a
trade agreement with British India. Prior to the signing of this trade
agreement, British East India Company was interested to have trade relations
with Nepal, for expansion of its own exports. The opening of direct India -
Tibet route via Gyantse routes further
promoted Nepal to develop trade with India. Moreover, the development of good
transportation system and the creation of many trade centers in the northern
India further helped to enhance the trade turnover between Nepal and India.
India Nepal Trade Treaty 1923
The Article VI of the first Trade Treaty between Nepal and
India signed in 1923 provided that “No customs duty shall be levied at British
Indian Ports as goods imported on behalf of the Nepal government for immediate
transport to that country.” Provision of this Article in Trade Treaty 1923 led
to the development of Nepal-British trade freely through the port of British
India for Nepal could not import goods from other overseas countries.
Nepal was compelled to purchase
goods manufactured in Britain Nepal was very much isolated from other countries,
especially from the developed Western countries prior to the political change of
1951.
