India And Nepal


 
 
Concept Explanation
 

India And Nepal

India And Nepal: India has maintained friendly relations with Nepal the Himalayan nation to its north. India helped Nepal in the construction of bridges, hospitals and railway lines. Nepal is a land-locked country and has no ports for overseas trade. Both countries have, therefore, signed a Treaty of Trade and Transit for manual cooperation. For Indians, travelling to and from Nepal is easy, with no restrictions.

  • Border dispute
  • The territorial disputes of India and Nepal include Kalapani 400 km2 at India-Nepal-China tri-junction in Western Nepal and Susta140 km2 in Southern Nepal. Nepal claims that the river to the west of Kalapani is the main Kali river; hence the area should belong to Nepal.
  • But India claims that the river to the west of Kalapani is not the main Kali river, and, therefore the border there should be based on the ridge lines of the mountains Om parvat to the east of the river.
  • The river borders the Nepalese province of Sudurpaschim and the Indian state of Uttarakhand. The Sugauli Treaty signed by Nepal and British India on 4 March 1816 locates the Kali River as Nepal's western boundary with India.
  • Subsequent maps drawn by British surveyors show the source of the boundary river at different places. This discrepancy in locating the source of the river led to boundary disputes between India and Nepal, with each country producing maps supporting their own claims.
  • Trade
  • India is Nepal's largest trade partner and the largest source of foreign investments, besides providing transit for almost entire third country trade of Nepal.
  • India accounts for over two-thirds of Nepal's merchandise trade, about one-third of trade in services, one-third of foreign direct investments.
  • Almost 100% of petroleum supplies, and a significant share of inward remittances on account of pensioners, professionals and workers working in India In the year 2017–2018.
  • Nepal's total trade with India was about US$8.2 billion; Nepal's exports to India were about US$446.5 million; and imports from India were about US$7.7 billion.
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