Date : 14/06/2023
Relevance: GS Paper 2; Bilateral Relationship
Main Points: Pancheshwar Multipurpose Project (PMP), National Payments Corporation of India, India - Nepal Treaty 1950.
Context -
- Prime Minister Pushpa Kamal Dahal Prachanda's recent visit to India signifies a commitment to addressing challenges, exploring opportunities, and reviewing various aspects of bilateral cooperation.
Realistic Handling of Irritants
- Prachanda's Political Courage: Despite facing challenges at home, Prachanda displayed political courage by pursuing a visit to India, showcasing his commitment to building a better future for Nepal.
- Focusing on Opportunities: Prachanda's approach involved prioritizing opportunities for cooperation, rather than being swayed by political noises. This pragmatic stance aims to resolve long-standing irritants like the 1950 Treaty, border differences, and the Eminent Persons Group (EPG)report.
The Treaty of Peace and Friendship of 1950
- The treaty talks about the reciprocal treatment of Indian and Nepali citizens in the two countries, in residence, property, business, and movement.
- It also establishes national treatment for both Indian and Nepalese businesses (i.e., once imported, foreign goods would be treated no differently than domestic goods).
- It also gives Nepal access to weaponry from India.
Significance of Nepal for India
- Buffer state: Nepal acts as a buffer state against any possible aggression from China.
- Internal Security: Curbing cross-border infiltrations and drug trade with help of Nepal.
- Diaspora: Nepali diaspora in India and Indian workforce in Nepal.
- Energy security: India and Nepal share many transboundary Himalayan rivers with huge hydropower potential.
Towards Economic Integration
- Identifying Game Changers: The visit emphasized key areas for transforming the economic landscape, such as hydropower projects, infrastructure development, river transport access, innovative tourism circuits, and improved connectivity. There was an unprecedented cross-party consensus when the Mahàkali Treaty, identifying the Pancheshwar Multipurpose Project (PMP), was negotiated, signed, and received parliamentary ratification a few years ago, despite political changes in both countries.
- Renewed Commitment: Post-COVID-19, both countries expressed a renewed commitment to bilateral cooperation, aiming for improved deliveries and collaboration in multiple sectors.
- Power Sector Cooperation: Collaboration in the power sector, including the trilateral power transaction from Nepal to Bangladesh through India, is poised to enhance energy security and prosperity in the sub-region.
Cooperation for Payment and Technology
- Digital Financial Connectivity: The MoU between the National Payments Corporation of India and the Nepal Clearing House Ltd. facilitates cross-border digital payments, contributing to regional cooperation and economic integration.
- Space Technology Cooperation: India's offer to provide satellite services, ground stations, and technology assistance to Nepal creates opportunities for cooperation in telecommunication, telemedicine, e-governance, and disaster response.
Major Issues between India - Nepal
Addressing Challenges
- Depoliticizing Cooperation: Nepal's challenge lies in depoliticizing cooperation with India, particularly in water resources management, while focusing on improving governance and combating corruption.
- Perception and Ownership: India needs to address the perception in Nepal that it is no longer a foreign policy priority, ensuring a sense of ownership, equality, and credit for major collaborative initiatives across the political spectrum.
Conclusion:
Despite opposition criticism, a consistent focus on development can enable Nepal to receive India's support in meeting its needs and expectations. By adopting a pragmatic approach, addressing irritants, and nurturing cooperation in various sectors, India and Nepal can forge stronger ties for the mutual benefit of both nations.
Probable Questions for Mains Exam-
- Question 1: Evaluate the role of economic integration in enhancing bilateral relations between India and Nepal, focusing on critical sectors such as hydropower, infrastructure, and connectivity. (10 marks, 150 Words)
- Question 2: Critically examine the potential benefits and challenges of digital financial connectivity between India and Nepal and its impact on regional cooperation. (10 Marks, 150 Words )
Source ; The Hindu
