The relationship between India and Nepal is complex, marked by deep cultural and economic ties, but also strained by territorial disputes, most notably concerning Lipulekh, the Kali River, and Kalapani. Recent developments, including agreements between India and China regarding border trade routes via Lipulekh without Nepal's consultation, have further complicated the situation. Against this backdrop, the appointment of Sushila Karki as Nepal's interim Prime Minister introduces a new dynamic, potentially influencing how these issues are addressed.

The Core Issues

• Lipulekh Pass: This is a high-altitude pass near the India-China-Nepal trijunction. India and China agreed to reopen border trade through Lipulekh, which has angered Nepal, who claims the pass as part of its territory. Nepal views any bilateral arrangements concerning Lipulekh without its consent as a violation of its sovereignty.
• Kali River: The Treaty of Sugauli in 1816 established the Kali River as the boundary between India and Nepal. However, disagreements persist regarding the river's origin, leading to conflicting territorial claims. Nepal asserts that the river originates further north at Limpiyadhura, thus including Kalapani and Lipulekh within its borders. India, however, maintains that the river originates at Kalapani.
• Kalapani: This is a 35 square kilometer area near the Lipulekh Pass, which has been a point of contention since the mid-1990s. Nepal claims the area east of the Kali River's source, while India asserts that its border runs along the watershed. India has maintained a security presence in Kalapani since the 1962 war with China.

Recent Developments

The latest dispute surrounding Lipulekh was reignited after India and China agreed to reopen border trade routes, including Lipulekh, without consulting Nepal. This move prompted Nepal to send protest notes to both countries, reaffirming its claim over Limpiyadhura, Lipulekh, and Kalapani as integral parts of Nepali territory, as reflected in its official map. India has dismissed Nepal's claims as "untenable" and lacking historical basis, asserting that border trade through Lipulekh has been ongoing for decades. China has told Nepal that the Lipulekh dispute is a bilateral matter between India and Nepal, and urged Kathmandu to resolve the issue directly with New Delhi.

Sushila Karki's Role

Sushila Karki's appointment as Nepal's interim Prime Minister comes at a critical juncture. She is seen as a figure of integrity and neutrality, potentially capable of stabilizing the nation and restoring public trust. Karki's understanding of the complexities of the India-Nepal relationship and her ability to foster consensus will be crucial in navigating the existing challenges.

Karki has expressed warmth towards India and Prime Minister Narendra Modi, recalling her positive experiences studying at Banaras Hindu University and emphasizing the strong people-to-people connections between the two countries. She has acknowledged that while government-to-government relations may experience friction, the underlying goodwill and affection between the people of Nepal and India remain strong.

Given the existing complexities and the recent escalation of the Lipulekh dispute, Karki may approach the situation by:

• Prioritizing Dialogue: Encouraging constructive dialogue and diplomatic engagement with India to address the outstanding boundary issues.
• Seeking Mutually Acceptable Solutions: Working towards finding mutually acceptable solutions that respect the sovereignty and territorial integrity of both nations.
• Leveraging Historical and Cultural Ties: Utilizing the strong historical and cultural connections between Nepal and India to foster a conducive environment for negotiations.
• Maintaining Neutrality: Actively trying to resolve the issue through diplomatic means.

It is important to note that Karki's tenure is interim, focused on stabilizing the nation, restoring public trust, and preparing for parliamentary elections in March 2026. This may limit the extent to which she can directly address the long-standing border disputes. However, her leadership can set the tone for future negotiations and contribute to a more constructive dialogue between India and Nepal.