1. Historical Background

Ancient & Cultural Ties: Shared Hindu and Buddhist heritage, open borders, inter-marriages.
1950 Treaty of Peace and Friendship: Free movement of people and goods, close defence and economic cooperation.
Shared Geography: Long open border (~1,770 km) with deep socio-economic links.

2. Major Disputes

Border Disputes: Kalapani–Limpiyadhura–Lipulekh region claimed by both; Susta region also disputed.
Constitutional Issues: India expressed concerns over Nepal’s 2015 Constitution (Madhesi issue).
Trade Blockade (2015): Nepal accused India of imposing unofficial blockade.

3. Cooperation & Agreements

Economic Cooperation: India is Nepal’s largest trade partner, transit provider, and investor.
Hydropower Projects: Arun III, Upper Karnali, Pancheshwar Multipurpose project.
Defence Cooperation: Gurkhas in Indian Army; joint exercises like ‘Surya Kiran’.
Connectivity Projects: Roads, railways, Motihari–Amlekhgunj petroleum pipeline.
Cultural Links: Pashupatinath Temple, Janakpur–Ayodhya religious circuit.

4. Current Status (2015–2024)

2015 Constitution and blockade strained ties.
2020 Nepal Map Amendment (Kalapani, Lipulekh, Limpiyadhura) created tensions.
High-level visits since 2021 improving ties.
China’s growing influence is a concern.
People-to-people ties remain strong.

5. Challenges

Border disputes (Kalapani, Susta).
China’s presence in Nepal.
Domestic politics in Nepal.
Perception of Indian interference.

6. Way Forward

Dialogue to resolve border disputes.
Strengthen economic and connectivity projects.
Respect Nepal’s sovereignty.
Enhance cultural and educational ties.
Balance China’s influence through engagement.