India's Neighbourhood First Policy and Nepal
India's "Neighbourhood First" policy, articulated since 2014, prioritises relations with South Asian neighbours through connectivity, development assistance, and people-to-people ties. Nepal is a critical component given the open border, Hindu-cultural affinities, shared river systems, and Nepal's strategic location as a buffer state between India and China.
- India and Nepal share an approximately 1,850 km open border under the Indo-Nepal Treaty of Peace and Friendship (1950), allowing free movement of people and goods without passports or visas.
- Nepal is India's second-largest development partner by aid volume; India has financed projects including the Arun-3 hydropower project, the Raxaul-Kathmandu railway project, and cross-border petroleum pipelines.
- The Eminent Persons Group (EPG), set up bilaterally in 2016 to review the 1950 Treaty, submitted its report in 2018 but Nepal has not officially shared it with India — a persistent diplomatic irritant.
- China's BRI (Belt and Road Initiative) investments in Nepal and CPEC adjacency create a triangular dynamic that India watches closely.
● Tracked since March 09, 2026 · last seen March 13, 2026 · updates as the daily brief publishes
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