India-Nepal Relations: SSB Lecturette Topic

India-Nepal Relations: SSB Lecturette Topic

1. Nepal has always been of strategic importance to New Delhi and its scenario
merits serious considerations.

2. Like Bhutan, it is a buffer state between China and India. With this buffer
state gone, the Chinese and Nepal Maoists will be sitting on Indo-Nepal border.

3. Nepalese Prime Minister Mr Sher Bhadur Deuba vis India during third week
of Mar 2002.

4. Home Minister Mr LK Advani offered India’s assistance to control the
insurgency in Nepal. He also called upon updating the extradition treaty.

5. India has also offered sharing of information and corporation between the
intelligence agencies of the two countries. India is concerned about ISI’s growth in Nepal as it could destabilize the strategic Siliguri border that connects the North East with the rest of the country.

6. He felt other areas also have growth possibilities like energy- intensive
industries, tourism, IT, agro enterprises, horticulture, sericulture, herbal and
livestock products, pharmaceutical and service sector industries such as health care

7. Following agreements were agreed upon: 

(a) Clamp down any activity in their territory against the other country.
(b) Nepal acknowledged Pakistan’s ISI working in Nepal and has
undertaken to crackdown on its activities directed against India.
(c) Sharing of intelligence.
(d) Border patrolling.
(e) Anti dumping duties
(f) Greater access to Indian market.
(g) Early completion of Raxaul-Birgunj Railway Line.
(h) More teeth to Extradition Treaty.
(j) India placed a point about floods in areas of UP and Bihar caused by
the rivers flowing from Nepal.
(k) Nepal showed its worries on inundation of parts of Nepal due to
construction of dams on the Indian side.
(l) Boundary Committee to complete its work very soon. Special attention
is to be given in Kalapani area at the trijunction of China, India and Nepal.

8. Relations with Nepal have traditionally been good but security lapses in the
Kathmandu Airport Administration, which caused hijacking of IC-814 in 2000 

Renewal of Trade Treaty

9. India is Nepal’s largest economic partner and accounts for more than 40% of
its trade. India has suggested some changes in the treaty, which are as follows: -
(a) Curb the import of Nepali hydrogenated cooking oil, acrylic yarn,
copper wires, steel pipes and zinc oxide as this is hurting domestic
(b) India has complained about cheap Chinese goods entering India
through Nepal, a charge that Nepal denies.

Area of disputes

10. Security concerns: - New Delhi is concerned about the use of Nepali
soil by the Pakistani agency ISI for subversion activities in India.
11. Boundary dispute:- The Boundary Committee to prepare ‘Strip Maps’
of the boundary areas.
12. The treaty of 1950:- Nepal is keen on reviewing some of the security
clauses of the 1950 treaty.

13. Extremist activities :- India and Nepal have decided to intensify the
crackdown on cross-border terrorist.
14. Water dispute: - It was decided to complete the detailed project report on
the construction of the 6000 MW Pancheswar Dam on the Mahakali River.

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