Context: Nepal signed a long-term agreement for the export of 10,000 MW power to India in the next 10 years and an MoU for cooperation in renewable energy .

Status of India-Nepal Relations:

Defense Cooperation:

- India supports Nepal Army in modernization through equipment, training, and joint military exercises.

- The Gorkha regiments of the Indian Army recruit soldiers from Nepal, with around 32,000 Gorkha soldiers serving in the Indian Army.

Disaster Management:

- India provided rapid assistance during the 2015 earthquake, including rescue teams, relief materials, and medical support.

- Total relief assistance exceeded $67 million, and India announced a $1 billion post-earthquake reconstruction package.

Infrastructure Development:

- India actively contributes to Nepal's development in infrastructure, health, water Resources, education, and rural development.

- Collaboration on border infrastructure, roads, and rail links is significant, and Indian companies are major investors in Nepal.

Water Resources Cooperation:

- Agreements for power exchange and transmission exist, with India supplying around 600 MW of power to Nepal.

- Mechanisms for discussing water Resources and hydropower cooperation are established.

Education:

- India contributes to human Resource development in Nepal, offering scholarships and seats for various courses.

Cultural Exchange:

- Cultural exchanges and people-to-people initiatives are integral, with agreements between Indian and Nepalese cultural and media organizations.

Challenges:

1. Issues with Peace and Friendship Treaty.

2. Territorial Disputes in areas like Kalapani.

3. Chinese Influence.

4. Security Threats due to a porous border.

5. Trust Deficit over project delays and perceived interference.

Way Forward:

- Resolve water issues through diplomatic talks based on international law.

- Increase investments and expedite project completion for a positive image.

- Counter China's influence by addressing economic cooperation challenges.

- Explore realistic solutions for the border dispute, drawing lessons from India-Bangladesh resolution.

Conclusion:

India-Nepal's historic ties are crucial for economic and strategic interests. A friendly Nepal acts as a buffer between India and China. Constructive engagement and enhanced cooperation are vital for long-term mutual benefits.