India–Nepal Relations: Over the Years and Way Forward

Abstract

India–Nepal relations are deeply anchored in shared civilizational heritage, religious traditions of Hinduism and Buddhism, cultural linkages, and an open border governed by the historical 1816 Treaty of Sugauli and the seminal 1950 Treaty of Peace and Friendship. This paper provides a comprehensive overview of the historical evolution and bilateral dynamics between India and Nepal across various Indian administrative tenures—from Jawaharlal Nehru’s security-centric paradigm to Narendra Modi’s Neighbourhood First initiative. It examines key strategic, political, and economic challenges, including the Kalapani and Susta territorial disputes, trade asymmetry, growing Chinese influence, and the impact of India’s Agnipath military recruitment scheme on Gorkha enlistment. Furthermore, the paper analyzes the recent generational shift in Nepal’s leadership under Prime Minister Balendra (Balen) Shah and his assertive ‘Nepal First’ foreign policy. The study emphasizes the necessity of sustained, sensitive diplomacy, mutual cooperation, and pragmatic dialogue to address emerging frictions and ensure long-term regional stability.