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Nepal to issue new Rs 100 note with disputed Indian territories
Why in the News?
Nepal cabinet introduces new Rs 100 note featuring disputed territories, drawing criticism from India.
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- New currency note shows the disputed territories of Lipulekh, Limpiyadhura and Kalapani of Uttarakhand state of India.
- It was termed as artificial enlargement and untenable by India.
About India-Nepal Relations
- Nepal shares a border of over 1,850 km with five Indian states – Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand.
Treaty of Sugauli (1815-16): The Treaty of Sugauli was a border treaty signed between the British East India Company and the Kingdom of Nepal in 1816 following the Anglo-Nepalese War of 1814-16. Under the treaty, Nepal ceded areas west of the Kali River up to the Sutlej River, as well as the Tarai region in the south.
India and Nepal share a robust partnership characterised by close cultural ties, open borders, and extensive cooperation across various sectors.
- Political Engagement: Both countries engage in cooperation within international forums and organisations, advocating for their shared interests and addressing collective concerns.
- In forums such as SAARC and BIMSTEC, India and Nepal collaborate on regional issues.
- Economic collaboration: They collaborate on trade, investment, and infrastructure projects, including road, rail, and port development.
- In the fiscal year 2020-21, the volume of bilateral trade between India and Nepal reached over US $ 7.34 billion.
- Ecological cooperation: Both nations undertake joint initiatives to reduce solid waste and plastic pollution in shared areas, promoting environmental cleanliness and safeguarding water bodies and ecosystems.
- The Zero Waste Himalaya initiative aims to foster waste reduction and responsible waste management practices across the Himalayan region.
- In 2024, Nepal and India signed a power trade agreement for Kathmandu to export 10,000 megawatts (MW) of hydroelectricity to India over the next 10 years, drawing a new arena of collaboration in cross-border renewable energy.
- Humanitarian Assistance: Both nations offer mutual aid during natural disasters and crises, extending assistance and support to each other.
- In November 2023, India supplied Nepal with essential medical and auxiliary supplies following a 6.4 magnitude earthquake in Jajarkot, Nepal.
Challenges in India-Nepal Relations
- Land Dispute: Border incidents between India and Nepal, frequently linked to disputes, have resulted in tensions and confrontations among security forces.
- In May 2020, Nepal unveiled a new political map asserting territorial claims over Kalapani, Limpiyadhura, and Lipulekh in Uttarakhand.
- Hydropolitics: Change in river course changing land demarcation has also been a major bone of contention between the two countries (say, Gandak, Kali, etc.)
- Cross-border criminal activities: It is frequently utilised for illicit purposes, such as smuggling goods, human trafficking, and engaging in cross-border criminal endeavours.
- As per the 2022 National Human Rights Report, approximately 40,300 Nepalis, predominantly women and girls, were trafficked in the last two years.
- Madhesi issue: Minority insecurity involves tensions over political representation and rights for the Madhesi people in Nepal’s Terai region, bordering India.
- This has led to protests and occasional diplomatic tensions between Nepal and India, highlighting complexities in ethnic politics and cross-border relations.
- China issue: India sometimes raises concerns about a perceived strategic encirclement due to the increasing influence of China in Nepal.
- In 2017, Nepal officially became a part of China’s Belt and Road Initiative (BRI).
Way forward
- China issue: Both countries ought to work together to foster mutual trust and present a unified response to China’s diplomatic actions.
- Transboundary water dispute: Both nations should seek practical solutions to border disputes, like Kalapani, through diplomatic dialogue guided by international law on transboundary water disputes.
- Border Management: Both India and Nepal must collaborate to enhance the management and regulation of their open border, which is vulnerable to exploitation by terrorist and criminal organisations.
- Strengthen Economic Ties: Enhancing trade agreements, increasing investment, and collaborating on development projects can provide mutual economic benefits and deepen interdependence.
