International Relations GS 2 In the news 14 times

India-Nepal Relations

Complexities in a "Special Relationship"

India and Nepal share what is often described as a "special relationship" — defined by geography (Nepal is a landlocked country nearly surrounded by India), culture (shared Hindu and Buddhist heritage), and the 1950 Treaty. But the relationship has also been marked by periodic tensions.

Key details

Nepal is landlocked and depends on India for transit access to ports — primarily Kolkata (Haldia) and Vizag (Visakhapatnam) for trade. Nepal's extreme trade dependence on India (about 65% of trade) gives India significant leverage.
The 2015 Nepal blockade: Following Nepal's adoption of a new constitution (which Madhesi communities in the Terai protested), India was accused of imposing an undeclared blockade for five months, straining bilateral relations sharply.
China-Nepal engagement: Frustrated by India's perceived interference, Nepal has actively courted Chinese investment — the Belt and Road Initiative (Nepal signed in 2017), Chinese hydropower investment, and a cross-border railway project (Kerung-Kathmandu). However, most Chinese projects have moved slowly.
The Eminent Persons' Group (EPG) on India-Nepal relations produced a report (2018) recommending revision of the 1950 Treaty, but India has not acted on it.
Boundary disputes: India and Nepal have an unresolved boundary dispute over Kalapani-Lipulekh-Limpiyadhura, which came to a head in 2020 when Nepal issued a revised political map claiming the area.

In the news

● Tracked since February 27, 2026 · last seen May 04, 2026 · updates as the daily brief publishes

04 May '26

Nepal objects to Mansarovar Yatra via Lipulekh; India says unjustified