India-Nepal relations

India-Nepal relationship is shaped by the centuries old social-cultural, historical and geographic linkages. Extensive people-to-people contacts permeate all aspects of the lives of the people of India and Nepal and transcend borders and governments. Welfare of the people of the two countries is interlinked and developments in one country invariably have an impact on the other. Few other sovereign states in the world can take pride in a relationship as wide-ranging and multi-faceted as that shared between India and Nepal.

Beginning with the 12-Point Understanding reached between the Seven Party Alliance (SPA) and the Maoists in Delhi in November 2005. Government of India welcomed the roadmap laid down by the historic Comprehensive Peace Agreement of November 2006 towards political stabilization in Nepal through peaceful reconciliation and inclusive democratic processes, India has consistently responded with a sense of urgency to the needs of the people and Government of Nepal in ensuring the success of the peace process and institutionalization of multi-party democracy through the framing of a new Constitution by a duly elected Constituent Assembly.

India was the first country to welcome the restoration of democracy in Nepal. India has also provided material assistance to strengthen the government machinery in Nepal and for successful CA elections. Overall, over Rs.170 crores of assistance in the form of supply and equipment has been extended as part of India’s support to the peace process in Nepal in response to requests from the Government of Nepal.

The visit of Prime Minister Hon’ble Mr. G.P. Koirala to India one month after the restoration of multi-party democracy in Nepal saw India extend a comprehensive package of assistance to help Nepal tide over immediate financial needs and support peace, democracy and stability. A comprehensive economic package worth Rs.1000 crores was announced during the visit. A soft credit line of USD 100 million for infrastructure development projects was extended, and outstanding dues on defence purchases worth NRs. 1.6 billion waived. Government of India also agreed to doubling the number of GOI scholarships for Nepalese students and to supply of 25,000 metric tons of fertilizers to Nepal at subsidized prices.

Prime Minister Hon’ble Pushpa Kamal Dahal ‘Prachanda’ paid an official visit to India from 14-17 September 2008, and met President, Vice President, Prime Minister, and External Affairs Minister as well as Chairperson of UPA and the Leader of Opposition. A Joint Press Statement was issued at the conclusion of the visit, reiterating the special features of the bilateral relationship and committing both sides to work towards further improving relations. India agreed to implement the Naumure hydro-electric project on Rapti river besides the Rs. 20 crores assistance for Kosi breach relief. Credit of up to Rs 150 crores was also provided to GON to ensure uninterrupted supplies of petroleum products. We have also permitted export of 10,000 tonnes of wheat and 15,000 tonnes of rice to Nepal, along with lifting of ban on other food items. PM Prachanda visited India again from November 12-14, 2008 to attend the BIMSTEC Summit.

The Foreign Minister of Nepal Hon’ble Mrs. Sujata Koirala visited India from 5-10 August 2009 where she held fruitful discussions with their counterparts. Foreign Secretary of India visited Nepal on 14-15 September 2009 to exchange views on the future course of cooperation between the two countries.

Prime Minister Hon’ble Mr. Madhav Kumar Nepal paid an official visit to India from August 18 – 22, 2009 at the invitation of the Prime Minister of India. The two leaders had also met earlier on the sidelines of the XVth NAM Summit in Sherm-el-Sheikh, Egypt. The two Prime Ministers expressed their satisfaction on the age-old, close, cordial and multifaceted relations between Nepal and India and agreed to expand them further. India expressed full support for the ongoing peace process and the efforts to bring about economic transformation in Nepal. The two Governments decided to reinvigorate bilateral relations by ensuring effectiveness of all established institutional mechanisms. The two sides also agreed to enhance bilateral trade on a sustainable basis. To facilitate Nepalese foreign trade, India agreed to utilization of Vishakhapatanam port for movement of transit traffic to and from Nepal. A MoU was signed for continuation of Indian grant assistant for “Goiter Control Programme” in Nepal. Nepal assured India that it will not allow its territory to be used for any activity against India and India also gave the same assurance to Nepal. A number of projects with Government of India assistance with a total outlay of over Rs. 1600 Crores were agreed upon including, construction of National Police Academy in Nepal, construction of poly-technique at Hetauda, construction of two integrated check-posts, construction of 660 kilometres of roads in the Terai region, construction of two cross-border rail-lines and continuing provision of Indian faculty to B.P. Koirala Institute of Health Sciences, Dharan. The two Governments also agreed to take up preventive measures and consultations to address the problem of inundation to border areas between Nepal and India. The Government of India also agreed, in principle, to double the number of scholarships offered to Nepalese students and to increase the number of slots offered for training of Nepalese Government officials. The two sides also agreed to facilitate increased Indian public and private sector involvement to harness Nepalese hydro-power potential. It was also decided to cooperate bilaterally in areas such as culture, science and technology, tourism and sports and to facilitate contact and cooperation among the parliamentarians of the two countries.

The Minister of External Affairs of India (EAM), H.E. Mr. S.M. Krishna paid an official visit to Nepal from January 15 – 17, 2010 at the invitation of Hon’ble Deputy Prime Minister and Minister of Foreign Affairs of Nepal Ms. Sujata Koirala. During his visit, EAM called on Rt. Hon. Dr. Ram Baran Yadav, President of Nepal and Rt. Hon’ble Mr. Madhav Kumar Nepal, Prime Minister of Nepal. He conveyed to them the greetings of the Indian leadership and reiterated that India attaches the highest priority to its relations with Nepal. EAM also called on Rt. Hon’ble Mr. Subas Chandra Nembang, Chairman of the Constituent Assembly and held an interactive discussion with Parliamentarians representing the different political parties in the Constituent Assembly. He also met senior political leaders representing various political parties of Nepal. During his visit, EAM held official talks with the Deputy Prime Minister and Minister for Foreign Affairs of Nepal on all aspects of bilateral relations and issues of mutual interest. The two Ministers expressed their satisfaction regarding the age-old, multifaceted relations that exist between Nepal and India and agreed to expand these further. They also reviewed the implementation of the decisions taken during the official visit of the Prime Minister of Nepal, Rt. Hon. Madhav Kumar Nepal to India from 18 – 22 August 2009. A total of four MoUs for various projects to be conducted with Government of India’s assistance were signed that included (i) MoU for construction of Terai roads with an estimated cost of IRs. 805 Crores; (ii) MoU for construction of a Science Learning Centre at an estimated cost of IRs 16.6 Crores; (iii) MoU between Nepal Stock Exchange Limited (NEPSE) and Central Depository Services (India) Ltd. (CDSIL), India at an estimated cost of IRs. 9.2 Crores; and (iv) MoUs for electrification of five different VDCs in Nepal at a total cost of IRs. 6.3 Crores.

In keeping with the tradition of regular high-level exchange of visits between India and Nepal, President, Hon’ble Dr. Ram Baran Yadav, first President of Nepal, paid a state visit to India from 15-18 February 2010 at the invitation of our President. He was accompanied by Mr. Sharat Singh Bhandari, Minister for Tourism and Civil Aviation and a high-level official delegation. During the visit he met the President. The Vice President, the Prime Minister, Minister of Finance, External Affairs Minister, Minister for Home Affairs, the Chairperson of UPA and the Leader of Opposition and the Foreign Secretary called upon the visiting President. He also visited Haridwar and met a cross section of political leaders in India. During the visit of President of Nepal to India (15-18 February 2010) four MoUs/agreements were signed in the presence of the President of Nepal and our Prime Minister. These included (i) Air Services Agreement between India and Nepal; (ii) MoU for extension of railway lines to five cross border points along the India Nepal border; (iii) MoU on establishment of Nepal-Bharat Maitree Polytechnique at Hetauda and (iv) MoU on establishment of Nepal Bharat Maitri Sabhagraha in Birgunj. In response to Nepal’s request for supply of food items, our Prime Minister announced that India will supply 50,000 metric tones of wheat, 25,000 metric tones of rice and 10,000 metric tones of pulses to Nepal. Our willingness to supply an additional 200 thousand metric tones of wheat, if required, was also conveyed. To facilitate economic and infrastructure development in Nepal, Prime Minister also announced the extension of a new concessional Line of Credit for US $ 250 million.

India remains steadfast in its commitment to extend assistance for Nepal’s economic development and political stabilization. India’s support continues to be in accordance with the wishes and priorities of the people and Government of Nepal. India Nepal Economic Cooperation stands to be further strengthened with the ushering in of a new era of hope and peace in Nepal.

• 2009-08-22 - India- Nepal Joint Statement
• 2009-09-15 - Opening Remarks by FS
• 2010-01-17 - Joint Press Statement on the Official visit of H.E. Shri S.M. Krishna, Minister of External Affairs of India to Nepal