Answer: India, through its Neighbourhood First policy, strives to build cordial and synergetic relations with its South Asian neighbors in various areas such as economy, science and technology, research, and education, among others. Though India has used this policy for cordial relations with Nepal (like the India-Nepal treaty of trade in 2009, Vaccine Maitri, etc.), there remain certain roadblocks in the Indo-Nepal relationship, highlighted below:

• Perception of Big Brother attitude: There are arguments that Nepal perceives India as having a ‘big brother attitude’ in its neighborhood. The unrevised Treaty of Peace and Friendship, 1950, and India’s perceived intervention in Nepal’s Constitution-making is seen as an unequal relationship between the two countries.
• Kalapani boundary issue: While 98% of the India-Nepal boundary was demarcated, two areas, Susta and Kalapani remained in limbo. Nepal expanded the Kalapani area dispute by raising nationalist sentiment, and ultimately it soured relations with India and added a new and emotive irritant.
• 2015 economic blockade: An economic blockade in 2015 in the Terai region along India’s border with Nepal, which led to acute shortages of fuel, cooking gas, etc., and also a price rise in land-locked Nepal has made Nepal more apprehensive towards its dependency on India for trade routes.
• Role of China: China is investing heavily in Nepal. Nepal also supports China’s Belt and Road Initiative (BRI). China has also given access to Nepal to use its port for trade, which reduces Nepal’s dependence on India. China’s growing role is a cause of concern for India’s strategic interest in the neighborhood.
• Transboundary water conflicts: Agreements on major rivers like Kosi, Gandak, etc. have been signed; however, there are disputes, which keep arising as fuelled by floods in the Kosi region. Nepal and India disagree on various construction projects on these rivers. Both India and Nepal are lacking in effort and political will to translate potential into reality.

In this context, India needs to be a sensitive and generous partner to Nepal and improve the ties by incorporating the following measures:

• It is argued by Some that India should try to shed its image of big brother in the neighborhood and revisit the 1950 Indo-Nepal Treaty of Peace and Friendship in order to reflect changes and new realities of contemporary bilateral ties.
• India and Nepal have long historical and cultural ties, which must be leveraged and more people-to-people engagements should be focused upon to reduce the trust deficit that has increased over the period.
• India and Nepal must chalk out their border issues in a formal and friendly manner, to avoid other disputes, such as the one over the Kalapani area.
• India should offer a ready and dynamic market for Nepal’s hydropower generating resources. Further, an integrated water management system for the transnational rivers of India and Nepal could also be outlined in the long run.
• China is winning hearts and minds in Nepal through generous strategic charity. Therefore, the way forward for India is to depart from its exclusively traditional security angle and be proactive with innovative strategies and policies.

The need today is to avoid rhetoric on territorial nationalism and lay the groundwork for quiet dialogue where both sides display sensitivity as they explore what is feasible.