Pragmatic Approach for Strengthening India-Nepal Ties : Daily News Analysis

Date : 14/06/2023

Relevance: GS Paper 2; Bilateral Relationship

Main Points: Pancheshwar Multipurpose Project (PMP), National Payments Corporation of India, India - Nepal Treaty 1950.

Context -

  • Prime Minister Pushpa Kamal Dahal Prachanda's recent visit to India signifies a commitment to addressing challenges, exploring opportunities, and reviewing various aspects of bilateral cooperation.

Realistic Handling of Irritants

  • Prachanda's Political Courage: Despite facing challenges at home, Prachanda displayed political courage by pursuing a visit to India, showcasing his commitment to building a better future for Nepal.
  • Focusing on Opportunities: Prachanda's approach involved prioritizing opportunities for cooperation, rather than being swayed by political noises. This pragmatic stance aims to resolve long-standing irritants like the 1950 Treaty, border differences, and the Eminent Persons Group (EPG)report.

The Treaty of Peace and Friendship of 1950

  • The treaty talks about the reciprocal treatment of Indian and Nepali citizens in the two countries, in residence, property, business, and movement.
  • It also establishes national treatment for both Indian and Nepalese businesses (i.e., once imported, foreign goods would be treated no differently than domestic goods).
  • It also gives Nepal access to weaponry from India.

Significance of Nepal for India

  • Buffer state: Nepal acts as a buffer state against any possible aggression from China.
  • Internal Security: Curbing cross-border infiltrations and drug trade with help of Nepal.
  • Diaspora: Nepali diaspora in India and Indian workforce in Nepal.
  • Energy security: India and Nepal share many transboundary Himalayan rivers with huge hydropower potential.

Towards Economic Integration

  • Identifying Game Changers: The visit emphasized key areas for transforming the economic landscape, such as hydropower projects, infrastructure development, river transport access, innovative tourism circuits, and improved connectivity. There was an unprecedented cross-party consensus when the Mahàkali Treaty, identifying the Pancheshwar Multipurpose Project (PMP), was negotiated, signed, and received parliamentary ratification a few years ago, despite political changes in both countries.
  • Renewed Commitment: Post-COVID-19, both countries expressed a renewed commitment to bilateral cooperation, aiming for improved deliveries and collaboration in multiple sectors.
  • Power Sector Cooperation: Collaboration in the power sector, including the trilateral power transaction from Nepal to Bangladesh through India, is poised to enhance energy security and prosperity in the sub-region.

Cooperation for Payment and Technology

  • Digital Financial Connectivity: The MoU between the National Payments Corporation of India and the Nepal Clearing House Ltd. facilitates cross-border digital payments, contributing to regional cooperation and economic integration.
  • Space Technology Cooperation: India's offer to provide satellite services, ground stations, and technology assistance to Nepal creates opportunities for cooperation in telecommunication, telemedicine, e-governance, and disaster response.

Major Issues between India - Nepal

Addressing Challenges

  • Depoliticizing Cooperation: Nepal's challenge lies in depoliticizing cooperation with India, particularly in water resources management, while focusing on improving governance and combating corruption.
  • Perception and Ownership: India needs to address the perception in Nepal that it is no longer a foreign policy priority, ensuring a sense of ownership, equality, and credit for major collaborative initiatives across the political spectrum.

Conclusion:

Despite opposition criticism, a consistent focus on development can enable Nepal to receive India's support in meeting its needs and expectations. By adopting a pragmatic approach, addressing irritants, and nurturing cooperation in various sectors, India and Nepal can forge stronger ties for the mutual benefit of both nations.

Probable Questions for Mains Exam-

  • Question 1: Evaluate the role of economic integration in enhancing bilateral relations between India and Nepal, focusing on critical sectors such as hydropower, infrastructure, and connectivity. (10 marks, 150 Words)
  • Question 2: Critically examine the potential benefits and challenges of digital financial connectivity between India and Nepal and its impact on regional cooperation. (10 Marks, 150 Words )

Source ; The Hindu