Download Learnerz IAS app from the Play Store now! Download



India-Nepal Relations UPSC NOTE


India-Nepal relations

  • India and Nepal experienced friendly and cordial bond with each other.

  • India-Nepal Treaty of Peace and Friendship, 1950

    • Bilateral treaty establishing a close strategic relationship.

    • This treaty allows free movement of people and goods between the two nations and a close relationship and collaboration between the two countries on matters of defence and foreign policy.

Trade and Economy:

  • Nepal shares a border with 5 Indian states. Hence an important point of trade and economic exchange.

  • India is the largest trading partner of Nepal.

  • India is the largest source of FDI in Nepal.

  • Indian firms engaged in manufacturing, services (banking, insurance, dry port), power sector and tourism industries etc.


  • Nepal being a landlocked country, it needs freedom of transit.


  • India provides transit for almost the entire third country trade of Nepal.

  • Since 2022, the Jaynagar-Bardibas railway started with India providing technical support.

  • India has also handed over the Solu Corridor, a 90-km, 132 kV power transmission line which will help bring electricity to several remote districts in northeastern Nepal.

  • Nepal has signed an MoU with India for Kathmandu-Raxaul railway link.

  • Sagarmatha to Sagar: India is looking to develop the inland waterways to Nepal and providing sea access for Nepal.

Defence cooperation:

  • Nepal acts as a buffer state against any possible aggression from China.

  • Curbing cross-border infiltrations and drug trade with help of Nepal.

  • India provides assistance to the Nepalese Army in its modernization through the provision of equipment and training.

Defence cooperation:

  • The Gorkha Regiments of the Indian Army are raised partly by recruitment from hill districts of Nepal.

  • Joint military exercise: Surya Kiran

Cultural cooperation:

  • Sister cities: India has signed three sister-city agreements for Kathmandu-Varanasi, Lumbini-Bodhgaya, and Janakpur-Ayodhya.

  • India laid the foundation for construction of the India International Centre for Buddhist Culture and Heritage in the Lumbini, Monastic Zone, Lumbini, Nepal.

Cultural cooperation:

  • The Ramayana Circuit train: It includes major pilgrimage sites from India and Nepal that are related to the Ramayana.

Energy cooperation:

  • India and Nepal share many transboundary Himalayan rivers with huge hydropower potential.

  • Hydroelectric projects: Arun III Project, Pancheshwar Multipurpose Project.

  • In 2019, the long-awaited Motihari-Amlekhgunj oil pipeline was inaugurated. 

  • India and Nepal have a Power Exchange Agreement since 1971 for meeting the power requirements in the border areas.

  • Nepal also invited Indian companies to invest in the West Seti hydropower project in Nepal.


  • Developmental assistance: The GoI provides development assistance to Nepal in the areas of infrastructure, health, water resources, and education and rural & community development.

  • Humanitarian assistance: due to its ecological fragility.

  • Vaccine diplomacy

Multilateral forums: 

  • BBIN (Bangladesh, Bhutan, India and Nepal), BIMSTEC, NAM, and SAARC.

What are the newly signed agreements?

  • A long-term Power Trade Agreement - set a target of importing 10,000 MW of electricity from Nepal in the coming years.

What are the newly signed agreements?

  • New pipeline will be constructed from Siliguri to Jhapa in eastern Nepal.

  • An MoU between NHPC and VUCL (Vidyut Utpadan Company Ltd.) of Nepal, for the development of Phukot Karnali Hydroelectric Project.

  • Project Development Agreement for Lower Arun Hydroelectric Project between SJVN (India) and Investment Board of Nepal.

  • Agreed to “achieve tangible and time-bound progress on the Pancheshwar multipurpose project”.

  • The two countries signed the revised Treaty of Transit under which Nepal will get to access to India’s inland waterways.

  • India facilitate export of hydropower from Nepal to Bangladesh through India.

  • Inaugurated cargo train from Bathnaha in India to Nepal Customs Yard. The rail link was built with an Indian grant.

  • Inaugurated integrated checkposts (ICPs) at Nepalgunj in Nepal and Rupaidiha on the Indian side.



Amritsar,1,April 2024,171,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,54,February 2024,228,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,67,Govt Schemes,2,GST,1,History,2,Home,3,IAS Booklist,1,Important News,71,Indian Economy,46,Indian History,2,Indian Polity,56,International Organisation,12,International Relations,58,Invasive Plant,1,January 2024,240,July 2023,281,June 2022,6,June 2023,268,March 2024,238,May 2022,17,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,66,September 2023,205,UPSC CSE,111,
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: India-Nepal Relations UPSC NOTE
India-Nepal Relations UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content