A reset in India–Nepal relations | East Asia Forum
In his first visit to India, Nepal’s prime minister focused on the economy rather than thorny political issues. The two prime ministers also inaugurated a petroleum pipeline to be constructed between India and Nepal. Border disputes between two countries are another contentious. Two thirds of Nepal's total trade are with India only. Not only that, more than 90 percent of landlocked Nepal's exports and imports transit. The fourth summit of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) was successfully held at.
This brought the Maoists to power and saw the emergence of the Madhesi community as a political force.
A year-old monarchy was abolished. The constitutional drafting process was meant to be completed in two years but remained unfinished untilwhen the Supreme Court intervened. Fresh elections were held for a new Constituent Assembly in Nepal has been traditionally ruled by individuals from the hill elites groups Bahuns and Chhetris largely who constitute 29 per cent of the population. Madhesis inhabit the Terai, the plains bordering India, and constitute 35 per cent of the population.
During the December visit to India by Nepalese prime minister Girija Prasad Koiralathe two countries signed new, separate trade and transit treaties and other economic agreements designed to accord Nepal additional economic benefits. Indian-Nepali relations appeared to be undergoing still more reassessment when Nepal's prime minister Man Mohan Adhikary visited New Delhi in April and insisted on a major review of the peace and friendship treaty which Nepal believed was enabling an ongoing demographic shift in Nepal's Terai region.
In the face of benign statements by his Indian hosts relating to the treaty, Adhikary sought greater economic independence for his landlocked nation while simultaneously striving to improve ties with China.
In Junea joint Kathmandu-New Delhi communique was issued pending the finalisation of a comprehensive arrangement covering all aspects of bilateral relations, restoring trade relations, reopening transit routes for Nepal's imports, and formalising respect of each other's security concerns. Kathmandu also announced that lower cost was the decisive factor in its purchasing arms and personnel carriers from China and that Nepal was advising China to withhold delivery of the last shipment.
However, even after the restoration of democracyinPrachandathe Prime Minister of Nepalvisited Indiain September only after visiting Chinabreaking the long-held tradition of Nepalese PM making India as their first port-of-call.
When in India, he spoke about a new dawn, in the bilateral relations, between the two countries. He said, "I am going back to Nepal as a satisfied person.
India–Nepal relations - Wikipedia
I will tell Nepali citizens back home that a new era has dawned. Time has come to effect a revolutionary change in bilateral relations. On behalf of the new government, I assure you that we are committed to make a fresh start.
The citizenship bill passed by the Nepalese parliament in was the same bill that was rejected by Late King Birendra in  before he along with his entire family was massacred.
Indian government formally expressed sorrow at the death of Late King Birendra of Nepal. InIndo-Nepal ties got a further boost with an agreement to resume water talks after a 4-year hiatus. The two issued a point statement highlighting the need to review, adjust and update the Treaty of Peace and Friendshipamongst other agreements. In return, Nepal will take measures for the "promotion of investor friendly, enabling business environment to encourage Indian investments in Nepal. Furthermore, a three-tier mechanism at the level of ministerial, secretary and technical levels will be built to push forward discussions on the development of water resources between the two sides.
Indian External affairs minister Pranab Mukherjee promised the Nepali Prime Minister Prachanda that he would "extend all possible help for peace and development. Prime Minister of India Narendra Modi visited Nepal in Augustmarking the first official visit by an Indian prime minister in 17 years. During his visit, Indian government agreed to provide Nepal with USD 1 billion as concessional line of credit for various development purposes and a HIT formula, but he insisted that Indian immigrants in Nepal don't pose a threat to Nepal's sovereignty and therefore open border between Nepal and India should be a bridge and not a barrier.
The two-day-long International Buddhist conference in Kathmandu which ran from May 19—20, marked Vesak and the 2,th birthday of the Buddha was also used to promote the Buddha's birthplace which lies in modern-day Nepal.
- Is it the end of India’s special relationship with Nepal?
- India–Nepal relations
- A reset in India–Nepal relations
Oli told the media that the conference, "should help us make clear to the world that Buddha was born in Nepal and that Buddhist philosophy is the product of Nepal".
Multiple Trade and Transit Treaties were signed between India and Nepal as trade ties strengthened between the two countries in the s and the s.
The first being inand in Meanwhile, on the China front, Nepal would not see any significant developments in the s, or the early s, although strong relations would be maintained between China and Nepal throughout this time, as Nepal continued to balance its relations between India and China.
History of India-Nepal Relations
That massive strain would result in the restoration of the parliamentary democracy in Nepal in and after visits and meets in the early 90s between Indian and Nepalese leaders, trade ties would resume again with the signing of new treaties. The s would see the monarchy getting restored under King Gyanendra, only to be overthrown in and abolished inwhen Prime Minister Dahal also known as Prachanda started his first tenure as Prime Minister of Nepal. Under King Gyanendra, China delivered arms to Nepal after India had stopped its weapons supply once the King seized power.
India would normalize its relations with Nepal once again after the King Gyanendra was removed from power. Wary of these developments, China too has has made recent efforts to maintain a presence in Nepal, with investment in the Araniko Highway that connects Kathmandu with the Nepal-China border and facilitates easier trade and movement of goods between the two countries.The Madhesi Issue - Nepal, India-Nepal Relations - UPSC/IAS/PCS
Hundreds of millions of dollars have also been pledged to Nepal by China for infrastructure and even military aid. However, India denied any role in the blockade, stating that internal tensions in Nepal were the cause behind the blockade.