Nepal’s announcement of printing the new Rs 100 currency note featuring Indian territories, has reignited discourse over border disputes with India.
Background
The territorial dispute is about a 372-sq-km area that includes Limpiyadhura, Lipulekh, and Kalapani at the India-Nepal-China trijunction in Uttarakhand’s Pithoragarh district.
In 2019, Lipulekh, Kalapani, and Limpiyadhura were included in India’s map.
Tensions between both nations emerged after Nepal issued a political map in 2020, which included the same territories.
Controversy over Nepal-India border
Nepal has asserted its claim based on the Sugauli Treaty of 1816, signed between the East India Company and Guru Gajraj Mishra.
Under the Treaty, the Kali River was marked as Nepal’s western boundary with India.
According to Nepal the east of the Kali river should begin at the source of the river which is in the mountains near Limpiyadhura.
India claims the border begins at Kalapani, where the river begins.
The Kali River has changed direction over the years, confusing in defining the border.
Susta Border dispute
Susta is a disputed territory between Nepal and India. It is administered by India as part of West Champaran district of Bihar.
Nepal claims the area is a part of West Nawalparasi District under Susta rural municipality, alleging that over 14,860 hectares of Nepali land in Susta has been encroached upon by India.
India and Nepal Relations
Nepal is important for India in the context of its overall strategic interests in the region. There is an age-old ‘roti beti’ relationship, which refers to cross-border marriages between people of the two countries.
Shared Border: The country shares a border of over 1,850 km with five Indian states – Sikkim, West Bengal, Bihar, Uttar Pradesh, and Uttarakhand.
Land-locked Nepal relies heavily on India for the transportation of goods and services and access to the sea is through India.
The India-Nepal Treaty of Peace and Friendship: Signed in 1950, it forms the bedrock of the special relations that exist between India and Nepal.
Nepalese citizens avail facilities and opportunities on par with Indian citizens by the provisions of the Treaty.
Nearly 8 million Nepalese citizens live and work in India.
Defense Cooperation: India has been assisting the Nepal Army (NA) in its modernization by supplying equipment and providing training.
The ‘Indo-Nepal Battalion-level Joint Military Exercise SURYA KIRAN’ is conducted alternately in India and Nepal.
The Gorkha regiments of the Indian Army are raised partly by recruitment from hill districts of Nepal.
Connectivity and Development Partnership: India has been assisting Nepal in the development of border infrastructure through the upgradation of 10 roads in the Terai area; the development of cross-border rail links at Jogbani-Biratnagar, Jaynagar-Bardibas; and the establishment of Integrated Check Posts at Birgunj, Biratnagar, Bhairahawa, and Nepalgunj.
Energy Cooperation: India and Nepal have had a Power Exchange Agreement since 1971 for meeting the power requirements in the border areas of the two countries.
An Agreement on ‘Electric Power Trade, Cross-border Transmission Interconnection and Grid Connectivity’ between India and Nepal was signed in 2014.
Trade and Economic: India remains Nepal’s largest trade partner, with bilateral trade crossing US$ 7 billion in FY 2019-20.
India’s exports to Nepal have grown over 8 times in the past 10 years while exports from Nepal have almost doubled.
Nepal is India’s 11th largest export destination, up from 28th position in 2014.
In FY 2021-22, it constituted 2.34% of India’s exports. The exports from India constitute almost 22% of Nepal’s GDP.
Mahakali River bridge: Recently, a MoU was signed between India and Nepal for the construction of a motorable bridge across the Mahakali River connecting Dharchula (India) with Darchula (Nepal), under Indian grant assistance.
Operation Maitri & post-earthquake reconstruction assistance: In the wake of the 2015 earthquake in Nepal, GoI was the first responder and carried out its largest disaster relief operation abroad (Operation Maitri).
Issues between India & Nepal
Treaty of Peace and Friendship of 1950: On 31 July 1950, India and Nepal signed a treaty of peace and friendship to “strengthen and develop these ties and to perpetuate peace between the two countries”.
As time passed, Nepal believed the treaty was “incompatible with national self-respect”.
Madhesi Issue: India’s entrenched interests in Nepal suffered a setback in 2015 when a blockade at the borders ensued following protests by Madhesis and some other ethnic groups against the marginalization of their interests in the newly passed Nepalese Constitution.
Chinese Interference: China’s involvement in Nepal’s infrastructure projects through its Belt and Road Initiative poses a threat to Nepal’s role as a buffer state between India and China.
Security challenges with Porous borders: The porous and poorly guarded border between India and Nepal allows terrorist groups to exploit it for smuggling weapons, ammunition, trained members, and fake currency, which poses a significant security risk to India.
Way Ahead
India-Nepal has a long history of cultural connections. Nepal is important for India’s economic and strategic interests. Having a friendly and supportive Nepal will serve as a buffer between India and an assertive China.
To manage border disputes both parties should explore realistic solutions. The successful boundary dispute resolution between India and Bangladesh can serve as a model for the way forward.
