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Relevance: GS Paper II — International Relations & Neighbourhood Policy Source: The Hindu / MEA Briefings, 2026

1 · What happened

Nepal’s Prime Minister, Balendra Shah, recently told Parliament that both India and Nepal have encroached on each other’s territory. Kathmandu later clarified that he meant cross-border occupation and missing pillars in the Dasgaja (no-man’s land strip).

Nepal also asked the United Kingdom for old colonial-era survey maps to support its claims. India’s MEA rejected any third-party role, saying the boundary is strictly a bilateral matter. Around the same time, Rabi Lamichhane, chief of Nepal’s ruling RSP, held a five-day visit to India.

2 · The Four Pillars of India–Nepal Relations

India and Nepal share an open, porous border of over 1,850 km with five Indian states — Uttarakhand, UP, Bihar, West Bengal and Sikkim. The relationship rests on a treaty, deep social ties, two boundary disputes and a strong China shadow.

The Treaty Anchor
1950 Peace & Friendship Treaty
Allows Nepali citizens equal rights in India — work, property, residence. Combined with the open border, this creates the famous “Roti-Beti ka Rishta”.
Cooperation
Energy & Digital Links
Motihari–Amlekhgunj — South Asia’s first cross-border oil pipeline. The Nepal–India Tech Forum (2026) pushes India’s DPI model and Nepal’s hydropower-powered data centres.
Border Disputes
Kalapani & Susta
West: Kalapani–Limpiyadhura–Lipulekh dispute from the 1816 Treaty of Sugauli — over the source of the Kali river. East: Susta dispute on the Bihar border, driven by the shifting course of the Gandak river.
Strategic Concern
The China Footprint
Nepal’s role in China’s Belt and Road Initiative (BRI) and Chinese infrastructure projects in northern Nepal are watched closely by India for security implications.

Image : India Nepal Border Dispute Areas

  • Boundary Working Group (BWG): Joint technical body of both countries — has already mapped over 97% of the border and is tasked with repairing pillars and clearing encroachments.
  • Eminent Persons Group (EPG): Joint panel set up to review and modernise the 1950 Treaty.
  • Buffer State role: Nepal sits between India and China; its political stability is directly linked to India’s heartland security.
  • Economic linkage: Nepal uses Indian ports for sea trade; India taps Nepal’s clean hydropower for its grid.

UPSC Value Box
Treaty of Sugauli, 1816 Signed after the Anglo-Nepalese War between the East India Company and Nepal. Fixed the Kali river as Nepal’s western border — the source of today’s Kalapani dispute.
1950 Peace & Friendship Treaty Bedrock of India–Nepal ties. Grants reciprocal national treatment — Nepalese citizens can live, work and own property in India.
Dasgaja The 10-yard no-man’s-land strip kept clear on either side of the border to prevent encroachment.
Kalapani Triad Kalapani, Limpiyadhura and Lipulekh — strategic high-altitude area in Pithoragarh, Uttarakhand, contested by Nepal.
Susta Dispute Friction along Bihar caused by the shifting course of the Gandak river, leading to changing land use across the border.
Motihari–Amlekhgunj Pipeline South Asia’s first cross-border petroleum pipeline, carrying refined oil from Bihar to Nepal.
Boundary Working Group Joint technical body for pillar construction, river mapping and clearing of Dasgaja. Has covered 97%+ of the border.
Neighbourhood First India’s foreign-policy doctrine prioritising South Asian neighbours through development partnerships, connectivity and people-to-people ties.

MCQ Practice Question
Q. With reference to India–Nepal relations, consider the following statements:

  1. The Treaty of Sugauli, 1816, was signed between Nepal and the British East India Company and identified the Kali river as Nepal’s western boundary.
  2. India shares an open international border of more than 1,850 km with Nepal, touching the states of Uttarakhand, Uttar Pradesh, Bihar, West Bengal and Sikkim.
  3. The 1950 Treaty of Peace and Friendship was signed between India and Nepal and gives Indian citizens the exclusive right to vote and hold political office in Nepal.

Which of the statements given above is/are correct?
(a) 1 and 2 only    (b) 2 and 3 only    (c) 1 and 3 only    (d) 1, 2 and 3

Answer: (a) 1 and 2 only

  • Statement 1 — Correct: The Treaty of Sugauli (1816) was signed after the Anglo-Nepalese War between Nepal and the British East India Company. It fixed the Kali river as Nepal’s western boundary — the basis of today’s Kalapani–Limpiyadhura–Lipulekh dispute.
  • Statement 2 — Correct: The India–Nepal border is over 1,850 km long and runs along five Indian states: Uttarakhand, Uttar Pradesh, Bihar, West Bengal and Sikkim.
  • Statement 3 — Incorrect (the trap): The 1950 Treaty grants reciprocal national treatment — Nepalese citizens get equal rights in India to work, own property and reside. It does not give Indians the right to vote or hold political office in Nepal; political rights remain sovereign to each country.

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