The Republic of India and the Federal Democratic Republic of Nepal initiated relations with the 1950 India–Nepal Treaty of Peace and Friendship and accompanying secret letters that defined security relations between the two countries, and an agreement governing both bilateral trade and trade transiting Indian territory. The relationship between the two nations of India and Nepal is often known as Roti-Beti ka Rishta.
History The Licchavis of Nepal originated from a branch of the Licchavis of Vaishali who ruled in the territories of modern-day Bihar, India.
Parts of modern-day India and Nepal were part of the Maurya Empire.
Narendra Rajya Laxmi Devi, queen consort to King Prithvi Narayan Shah of the Kingdom of Nepal and mother of future King Pratap Singh Shah, was a daughter of Abhiman Singh, a Rajput chief from Varanasi, in present-day India.
Independent political history
1950–1971 The foundation of relations between India and Nepal was laid with the Indo-Nepalese friendship Treaty in 1950. In the 1950s, the Rana rulers of the Kingdom of Nepal welcomed close relations with the newly independent India, fearing a China-backed communist overthrow of their autocratic regime after the success of Communist Revolution in China by the Chinese Communist Party (CPC) and the establishment of the People's Republic of China on 1 October 1949, as a form of Marxist-Leninist government. Rana rule in Nepal however collapsed within three months of signing the 1950 Indo-Nepal Treaty of Peace and Friendship, to be replaced by the only pro-Indian party of the time – Nepali Congress. In 1951, following the entry of the People's Liberation Army (PLA) into Tibet, the Tibetan government signed the Seventeen Point Agreement on 23 May 1951, which acknowledged Chinese sovereignty over the region, where Tibet became annexed with Communist China in October 1951. As the number of Indians living and working in Nepal's Terai region increased and the involvement of India in Nepal's politics deepened in the 1960s and after, so too did Nepal's discomfort with the special relationship. India's influence over Nepal increased throughout the 1950s. The Nepalese Citizenship Act of 1952 granted Indians the right to immigrate to Nepal and acquire Nepalese citizenship without any difficulty, which caused resentment in Nepal. This policy remained in effect until 1962, when several restrictive clauses were added to the Nepalese constitution. Further, in 1952, an Indian military mission was established in Nepal, which consisted of a Major General and 20 other Indian army personnel, which was later extended to 197 in total. At the same time, Nepal's Royal family's dissatisfaction with India's growing influence began to emerge. As a consequence, overtures to China were initiated by Nepal as a counterweight to India.
The Treaty of Trade and Commerce between the two countries was ratified in October 1950, wherein India acknowledged Nepal's right to import and export commodities through the Indian territories and ports. As per the treaty, customs duties could not be levied on commodities that were in transit through India.
Following the 1962 Sino-Indian border war, the relationship between Nepal and India thawed significantly. India suspended its support to India-based Nepalese opposition forces, opposing the dissolution of democratic government by King Mahendra. The defeat of Indian forces in 1962 in a border war with China, provided Nepal with the much-needed breathing space and Nepal extracted several concessions in trade with India. In exchange, through a secret accord concluded in 1965, similar to an arrangement that had been suspended in 1963, India won a monopoly on arms sales to Nepal.
In 1969, relations between both countries again became stressful as Nepal challenged the existing mutual security arrangement and asked that the Indian security checkposts and liaison group be withdrawn. Resentment also was expressed against the 1950s TPF. India withdrew its military check-posts and liaison group consisting of 23 military personnel in 1970 from all but Kalapani area of Nepal, although the treaty was not abrogated.
Tensions further increased in the mid-1970s, when Nepal pressed for substantial changes in the trade and transit treaty and openly denounced Sikkim's 1975 annexation by India. In 1975 King Birendra Bir Bikram Shah Dev against the backdrop of Indian annexation of Nepal's close neighbor the Kingdom of Sikkim proposed Nepal to be recognized internationally as a 'Zone of Peace' where military competition would be off limits. Nepal's proposal immediately received support from Pakistan and China, but not from India. In New Delhi's view, if the king's proposal did not contradict the 1950 treaty that the-then Indian government had signed with the Rana rulers of Nepal, it was unnecessary; if it was a repudiation of the special relationship, it represented a possible threat to India's security and could not be endorsed. In 1984 Nepal repeated the proposal, but there was no reaction from India. Nepal continually promoted the proposal in international forums and by 1990 it had won the support of 112 countries including the US, the UK, and France.
1970–1990 In 1978 India agreed to separate trade and transit treaties, satisfying a long-term Nepalese demand. However, much to the annoyance of Nepalese Royal Palace and in continued violation of the 1950s PFT, India consistently allowed the opposition parties of Nepal to use Indian soil to launch agitation against the Nepalese government and refused to endorse Nepal as a Zone of Peace. In 1988, when the two treaties were up for renewal, Nepal refused to accommodate India's wishes for a single trade and transit treaty stating that 'it violates the principle of freedom to trade'. Thereafter, both India and Nepal took a hard-line position that led to a serious crisis in bilateral relations. Nepalese leaders asserted the position that as per the UN charter, transit privileges were "a fundamental and a permanent right of a land-locked country" and thus India's demand for a single treaty was unacceptable. After two extensions, the two treaties expired on 23 March 1989, resulting in a virtual Indian economic blockade of Nepal that lasted until late April 1990.
Over the years, Indian economic sanctions over Nepal steadily widened. For example, preferential customs and transit duties on Nepalese goods entering or passing through India (whether imports or exports) were discontinued. Thereafter India let agreements relating to oil processing and warehouse space in Calcutta for goods destined for Nepal expire. Aside from these sanctions, India cancelled all trade credits it had previously extended to Nepal on a routine basis.
To withstand the renewed pressure from India, Nepal undertook a major diplomatic initiative and presented its case on trade and transit matters to the world community.
In 1989, Nepal decoupled its rupee from the Indian rupee which had been circulating in Nepal freely. This further strained the relationship between the two countries. India retaliated by denying port facilities in Calcutta to Nepal, thereby preventing delivery of oil supplies from Singapore and other source countries. In historian Enayetur Rahim's view, "the economic consequences of the dispute... were enormous. Nepal's GDP growth rate plummeted from 9.7% in 1988 to 1.5% in 1989. This had a lot to do with the decreased availability of goods. Shortly after the imposition of sanctions, Nepal experienced serious deficiencies of important goods such as coal, fuel, oil, medicine and spare parts. Nepal also suffered economically from higher tariffs, the closure of border points and the tense political atmosphere. From one of the most thriving economies in Asia, Nepal was now quickly finding itself in the league of World's poorest nation." Although economic issues were a major factor in the two countries' confrontation, Indian dissatisfaction with Nepal's decision to impose work permits over Indians living in Nepal and Nepal government's attempt to acquire Chinese weaponry in 1988 played an important role. India linked security with economic relations and insisted on reviewing India–Nepal relations as a whole. After failing to receive support from wider international community, Nepalese government backed down from its position to avoid the worsening economic conditions. Indian government, with the help of Nepalese opposition parties operating from India, managed to bring a change in Nepal's political system, in which the king was forced to institute a parliamentary democracy. The new government, led by pro-India parties, sought quick restoration of amicable relations with India.
1990s The special security relationship between New Delhi and Kathmandu was re-established during the June 1990 New Delhi meeting of Nepal's prime minister Krishna Prasad Bhattarai and Indian prime minister V.P. Singh, after India ended its 13-month-long economic blockade of Nepal. During the December 1991 visit to India by Nepalese prime minister Girija Prasad Koirala, the two countries signed new, separate trade and transit treaties and other economic agreements designed to accord Nepal additional economic benefits.
Indian-Nepali relations appeared to be undergoing still more reassessment when Nepal's prime minister Man Mohan Adhikary visited New Delhi in April 1995 and insisted on a major review of the 1950 peace and friendship treaty which Nepal believed was enabling an ongoing demographic shift in Nepal's Terai region. In the face of benign statements by his Indian hosts relating to the treaty, Adhikary sought greater economic independence for his landlocked nation while simultaneously striving to improve ties with China.
In June 1990, a joint Kathmandu-New Delhi communique was issued pending the finalisation of a comprehensive arrangement covering all aspects of bilateral relations, restoring trade relations, reopening transit routes for Nepal's imports, and formalising respect of each other's security concerns.
The communiqué announced the restoration of the status quo ante along with the reopening of all border points. Nepal agreed to various concessions regarding India's commercial privileges. Kathmandu announced that it factored in the lower cost while purchasing arms and personnel carriers from China. Nepal was advising China to withhold delivery of the last shipment. As per the declaration made by the communiqué, both countries would cooperate in the industrial development and waters coming from their common rivers would be harnessed for mutual benefit for both the countries, while also protecting and managing the environment.
2000s In 2005, after King Gyanendra took over, Nepalese relations with India soured. However, even after the restoration of democracy, in 2008, Prachanda, the Prime Minister of Nepal, visited India, in September 2008 only after visiting China, breaking the long-held tradition of Nepalese PM making India as their first port-of-call. When in India, he spoke about a new dawn, in the bilateral relations, between the two countries. He said, "I am going back to Nepal as a satisfied person. I will tell Nepali citizens back home that a new era has dawned. Time has come to effect a revolutionary change in bilateral relations. On behalf of the new government, I assure you that we are committed to make a fresh start."