The Prime Minister congratulated Mr. Balendra Shah on being sworn in as the Prime Minister of Nepal expressing intent to deepen India–Nepal friendship and cooperation.
Importance of Nepal for India
- Strategic & Security Significance: Acts as a buffer between India and China and secures India's northern border.
- Under the “Neighbourhood First” policy, Nepal is vital for regional stability and cooperation, shaping India’s engagement with BIMSTEC.
- Regional Economic Influence: India is Nepal’s largest trading partner making it essential for India's regional economic influence.
- Water Resource Management: Nepal’s rivers are crucial for India’s water security, influencing water management and flood control in northern states.
- Military Integration: The Indian Army’s Gorkha regiments, with about 32,000 Nepali soldiers, reflect strong military cooperation and trust between the two nations.
- Cultural & People-to-People Links: Deep historical and cultural bonds exist, characterized by the "Roti-Beti" relationship
Challenges in Relations
- Boundary Disputes: Unresolved issues over Kalapani, Lipulekh, Limpiyadhura and Susta.
- China Factor: Nepal’s growing proximity to China and BRI engagement.
- Water Sharing Disagreements: Issues over Mahakali, Koshi and Gandak treaties
- Hydropower Project Delays: Pancheshwar, Arun III, Upper Karnali, etc.
- Open Border Issues: Challenges of illegal trade, trafficking and security concerns.