Nepal-India RelationsExcellencies,L

Nepal-India Relations
Excellencies,
Ladies and gentleman,
Let me start by expressing my pleasure for having the opportunity of sharing my views at this gathering of eminent personalities. I also take this opportunity to express my sincere thanks to the organizers.
Mr.Chairman
Nepal and India are two neighbours having unique relations dating back to antiquities perhaps even before the dawn of human civilization .In course of bilateral relations spread over such a long period, culture and history, tradition and politics, religion and mythology, language and literature, trade and commerce, matrimonial linkage and migration have bound the two countries which have close proximity with open borders and freedom of movements. The geographical, historical, economic and socio-cultural factors have shaped our relations, both formally and informally, in such a manner that the two countries are bound to maintain a closer cooperations and understanding.
India always supported the democratic movements in Nepal. Had there been no support from India, it would have been difficult for the democratic forces in Nepal to succeed, abolish Monarchy and to establish Federal Democratic Republic of Nepal.
After India had achieved independence in 1947, Nepalese-Indian relation continued to based on the Treaty which had been signed with government of British India in 1925. Beginning in 1950, however relations were based on two treaties under the Treaty of Peace and Friendship, ratified in July 1950,where each government agreed to acknowledge and respect the other’s sovereignty, territorial integrity, and independence; to continue diplomatic relations, and , on matters pertaining to industrial and economic development to grant rights equal to those of its own citizen to the nationals of the other residing in its territory. And an agreement governing both bilateral trade and trade transiting Indian soil. The 1950 treaty and letters stated that “ neither government shall tolerate any threat to the security of the other by a foreign aggressor” and obligated both sides “to inform each other of any serious friction or misunderstandings with any neighboring state likely to cause any breach in the friendly relations subsisting between the two governments” These accords cemented a ‘special relationship’ between India and Nepal that granted Nepal preferential economic treatment and provided Nepalese in India the same economic and educational opportunities as Indian citizens.
Exchange of high level visits has been the hallmark of Nepal-India relations during the past five decades. Indian economic assistance has played a key role in Nepal’s development in the past. There are tremendous possibilities of further developing bilateral relationship in various fields. Nepal remains an important place for India’s large-scale investments in capital, technology and expertise.
On the river waters issue Indian side agreed to send a technical team to Nepal to study the Bagmati civilization project, satisfaction was expressed over timely completion of the technically challenging task of the closure of the breach of Koshi embankment. To accelerate the implementation of Puncheshwar multi-purpose project, Joint ministerial commission on water resources should expedite finalisation of terms of reference for Pancheshwar development authority and the detailed project report of the Pancheshwar project. Progress on the Sapta Koshi High Dam and Sunkoshi diversion project and the Naumure project as per bilateral discussion is to be expedited.
On security front the Bilateral Consultative Group on security issues , the both countries should meet frequently to enhance bilateral cooperation to effectively address all issues concerning security including cross-border crime. One of the major concerns India has with Nepal is the flow of fake Indian currency to India through Nepal. The other two concerns are Nepal being used for terrorist activities directed at India for anti-Indian activities. India's allegation has been that Nepal has not respected its sensitivities. A mutually accommodative attitude taking care of India's security interest, while fully respecting Nepal's sovereignty , is the only way out to put Nepal- India relations on a sound footing. Actually Nepal should not allow its territory to be used against any of its neighbours. It is essential to examine future prospects of
Nepal-India relations from strategic and economic perspective. Nepal's economic development has been inextricably linked with India. India is the largest single partner in Nepal's foreign trade and Nepal's dependence upon India for essential commodities has been immense. It can be said that Nepal provide lot of scope for the establishment of joint ventures in large number of identified areas such as leather and skins, jute carpet industries, cement, textiles, herbs, sports and hiking goods, pharmaceuticals, milk products, climate change and tourism, hydro -power, education and health care, food products, etc. A number of policy initiatives taken by India such as trade liberalization, utilization of river water, transit facilities, etc. indicate India's positive attitude towards Nepal. India's emphasis on sub-regional cooperation seems to be a departure from its insistence upon bilateral cooperation. Such an approach will help building confidence among smaller neighbours of India. India's initiatives should be taken in a positive direction by the neighbours like Nepal. Nepal will have to take measures for the promotion of investors friendly, enabling business environment to encourage Indian investments in Nepal. India has to pay more concentration for peace, friendship and cooperation, stability, economic development, socio-cultural relations. Nepal and India have to work together to protect our people by the adverse effect of climate change in this region, poverty reduction, food security, social security, employment generation and resources mobilization with creating conducive environment for peace, stability and development in this region. Due to India's immense politico-strategic interests in the Himalayas, Nepal's small power psychology, its landlocked nature and excessive economic dependency upon India, a number of problems also arise in their bilateral relations. The two neighbors bear potentials for long-term and mutually beneficial cooperation as well as strains and conflicts. How to prevent the areas of suspicion and conflict and encourage spheres of cooperation and partnership has been a major challenges before the leaders of the two countries.
In the context of the evolution of SAARC as an important regional organization, the south Asian nations have much stronger basis for closer regional friendship and cooperation. Nepal and India can work together with better coordination in international organizations like United Nations, NAM, SAARC, BIMSTEC etc. for the better future of the people of the both countries and the world. The European nations with strong ethnic, cultural and linguistic differences and a history of bitter wars and hatred, have been able to rise above their past animosities to promote cooperation. It is imperative on the part of south Asian countries to learn from such rare vision and statesmanship for promoting tangible cooperation. Nepal and India with so many commonalities have to take bold initiatives interms of economic and technical cooperation so as to directly benefit the people of the two countries. This is the only way to uplift the living standards of our people, majority of whom are still denied even the basic needs of health, education, employments and shelter.
Thank you for your kind attention.