India has welcomed the formation of Nepal's new interim government, led by former Chief Justice Sushila Karki. The Ministry of External Affairs (MEA) released a statement expressing hope that this development would foster peace and stability in the neighboring country. Karki was sworn in as Nepal's interim Prime Minister on Friday.
The formation of the interim government follows a period of political turmoil in Nepal, triggered by widespread protests. These protests, led by the younger generation, were sparked by a controversial ban on social media platforms, as well as deeper grievances related to corruption and governance. The unrest resulted in the resignation of former Prime Minister K. P. Sharma Oli and the dissolution of Parliament.
India, as a close neighbor, fellow democracy, and long-term development partner, has affirmed its commitment to working closely with Nepal for the well-being and prosperity of both nations. This commitment reflects India's "Neighbourhood First" policy, which prioritizes strong relations with its neighbors.
India and Nepal Relations
India and Nepal share deep-rooted historical, cultural, and economic ties. The two countries share a 1,751 km long border, and their relationship is characterized by open borders and close people-to-people connections. This is further strengthened by commonalities in religion, language, and culture. A unique aspect of this relationship is the tradition of awarding the Rank of Honorary General to each other's Chief of Army Staff.
The India-Nepal Treaty of Peace and Friendship in 1950 forms the foundation of their special bond. Under this treaty, Nepalese citizens enjoy facilities and opportunities equivalent to those of Indian citizens.
India is Nepal's largest trade partner, contributing to over two-thirds of its merchandise trade. Indian firms also constitute a significant portion of foreign direct investment in Nepal. Furthermore, the Nepali rupee is pegged to the Indian currency, and landlocked Nepal relies on Indian ports for trade.
India has also been actively involved in Nepal's socioeconomic development since the 1950s. India's development assistance is focused on large-scale infrastructure projects.
In the power sector, India supplies approximately 600 MW of power to Nepal. The two countries have a Power Exchange Agreement since 1971 to meet power requirements in border areas. They have also collaborated on the construction of hydroelectric projects in Nepal.
Challenges and Future Prospects
Despite the strong relationship, there have been instances of tension and differing perspectives. In recent years, Nepal has seen a shift towards a pro-China policy. The "Greater Nepal" theory, which involves merging parts of Indian territory into Nepal, has also been a source of contention.
Looking ahead, India's focus on Nepal includes non-partisan support for inclusive economic development, interdependence, communication links, and capitalizing on economic complementarities, particularly in the hydropower sector.
The formation of the interim government in Nepal is a significant step towards restoring stability and holding fresh parliamentary elections. India's continued support and cooperation will be crucial in ensuring a peaceful and prosperous future for Nepal.
