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India and Nepal have agreed to enhance their bilateral cooperation in various fields, including trade, connectivity, energy, and defence. The two countries also reviewed the progress of several development projects funded by India in Nepal. These outcomes were achieved during the recent high-level visits and dialogues between the two neighbours, which have aimed to restore trust and goodwill after a period of strained relations due to border disputes and political differences.
What are the key areas of cooperation between India and Nepal?
India and Nepal share a unique and special relationship, rooted in centuries of cultural, historical, and religious ties. The two countries have an open border, allowing free movement of people and goods. India is Nepal’s largest trading partner, accounting for about 60% of Nepal’s total trade. India is also the largest source of foreign direct investment, tourism, and remittances for Nepal. India has been providing development assistance to Nepal in various sectors, such as infrastructure, health, education, agriculture, and hydropower. India has also been supporting Nepal’s post-earthquake reconstruction efforts, with a commitment of $1 billion.
Some of the key areas of cooperation between India and Nepal are:
- Trade and connectivity: India and Nepal have agreed to expedite the implementation of several bilateral projects, such as the Integrated Check Posts, the cross-border rail links, the inland waterways, and the air routes. India and Nepal have also agreed to enhance their trade facilitation measures, such as the electronic cargo tracking system, the integrated customs system, and the mutual recognition of standards and certifications. India and Nepal have also agreed to review and update the bilateral trade treaty, the transit treaty, and the rail service agreement to reflect the changing realities and aspirations of both sides.
- Energy and hydroelectricity: India and Nepal have agreed to cooperate in the field of energy and hydroelectricity, which has immense potential for mutual benefit. India and Nepal have agreed to expedite the completion of the 900 MW Arun-III project, which is being developed by an Indian company with an investment of $1.4 billion. India and Nepal have also agreed to expedite the construction of the 132 kV Kushaha-Kataiya and the 220 kV Raxaul-Parwanipur cross-border transmission lines, which will enhance the power exchange between the two countries. India and Nepal have also agreed to explore the possibility of developing more hydroelectric projects in Nepal with Indian participation, under the framework of the Power Trade Agreement signed in 2014.
- Defence and security: India and Nepal have agreed to strengthen their defence and security cooperation, which is based on mutual trust and respect. India and Nepal have agreed to enhance their joint training and exercises, exchange of visits and expertise, and procurement of defence equipment and platforms. India and Nepal have also agreed to coordinate and consult on issues of regional and international security, such as terrorism, cyber security, and maritime security. India and Nepal have also agreed to work together to combat the Covid-19 pandemic, and to cooperate in the development and distribution of vaccines and medicines.
Why is the improvement of India-Nepal relations important?
The improvement of India-Nepal relations is important for several reasons. First, it reflects the common desire and commitment of both sides to overcome the past differences and to move forward with a positive and constructive agenda. Second, it enhances the mutual trust and confidence between the two countries, which is essential for the stability and prosperity of the region. Third, it creates new opportunities and synergies for cooperation and collaboration in various fields, such as trade, connectivity, energy, and defence. Fourth, it reaffirms the shared values and interests of both countries, such as democracy, pluralism, and peace.
What are the challenges and opportunities for the future of India-Nepal relations?
The future of India-Nepal relations will face several challenges and opportunities. Some of the challenges are:
- To resolve the outstanding issues, such as the boundary dispute, the citizenship issue, and the Madhesi agitation, through dialogue and consultation, and in accordance with the historical treaties and agreements.
- To balance the interests and expectations of the domestic constituencies and the external partners, and to avoid any interference or influence in each other’s internal affairs.
- To address the asymmetry and disparity in the size, population, and economy of the two countries, and to ensure that the cooperation is based on mutual respect, equality, and benefit.
- To cope with the emerging threats and challenges, such as climate change, natural disasters, pandemics, and cyber attacks, and to enhance the resilience and capacity of both countries.
Some of the opportunities are:
- To leverage the complementarity and diversity of the two countries, and to tap into the potential of the youth, the diaspora, and the civil society.
- To harness the opportunities and benefits of the regional and sub-regional initiatives, such as the SAARC, the BIMSTEC, the BBIN, and the SASEC, and to contribute to the regional integration and connectivity.
- To engage with the global community and the multilateral institutions, such as the UN, the WTO, the IMF, and the World Bank, and to voice the common concerns and aspirations of the developing countries.
- To foster a strategic partnership and a long-term vision for the future of India-Nepal relations, and to celebrate the achievements and milestones of the bilateral cooperation.
Conclusion
India-Nepal relations have entered a new chapter of friendship and cooperation, after a period of turbulence and uncertainty. The two countries have agreed to enhance their bilateral cooperation in various fields, including trade, connectivity, energy, and defence. The two countries have also reviewed the progress of several development projects funded by India in Nepal. These outcomes have been achieved through the recent high-level visits and dialogues between the two neighbours, which have aimed to restore trust and goodwill. The future of India-Nepal relations will depend on the ability and willingness of both sides to overcome the challenges and seize the opportunities, and to work together for the common good of both countries and the region.
1. What is the name of the hydroelectric project in Nepal that is being developed by an Indian company with an investment of $1.4 billion?
(A) Arun-III
(B) Koshi
(C) Karnali
(D) Pancheshwar
Answer: (A) Arun-III
2. What is the name of the agreement that enables the power trade between India and Nepal, signed in 2014?
(A) Power Trade Agreement
(B) Power Cooperation Agreement
(C) Power Sharing Agreement
(D) Power Exchange Agreement
Answer: (A) Power Trade Agreement
3. What is the name of the cross-border transmission line that is being constructed to enhance the power exchange between India and Nepal, with a voltage of 220 kV?
(A) Kushaha-Kataiya
(B) Raxaul-Parwanipur
(C) Muzaffarpur-Dhalkebar
(D) Tanakpur-Mahendranagar
Answer: (B) Raxaul-Parwanipur
4. What is the name of the bilateral project that aims to facilitate the movement of people and goods across the India-Nepal border, by building integrated facilities for customs, immigration, and security?
(A) Integrated Check Posts
(B) Integrated Border Management
(C) Integrated Border Crossing
(D) Integrated Border Development
Answer: (A) Integrated Check Posts
5. What is the percentage of Nepal’s total trade that is accounted for by India, as per the information given?
(A) 40%
(B) 50%
(C) 60%
(D) 70%
Answer: (C) 60%
