India and Nepal’s Border Issue

General Studies Paper-2

Context: 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 had been included in India’s map.
• Tensions between both the 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.
  • While India claims the border begins at Kalapani, where the river begins.
• The Kali River has changed direction over the years, causing confusion 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 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 in accordance with 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 modernisation by supplying equipment and providing training.
• The ‘Indo-Nepal Battalion-level Joint Military Exercise SURYA KIRAN’ is conducted alternately in India and in 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 development of border infrastructure through upgradation of 10 roads in the Terai area; development of cross-border rail links at Jogbani-Biratnagar, Jaynagar-Bardibas; and 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 export to Nepal has 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 in an effort 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 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.