Nepal PM Pushpa Kamal Dahal's visit to India strengthens age-old bonds
Since taking office in December 2022, Prachanda has emphasised that the new administration is dedicated to fostering an international one with India that is characterised by stability and dependability, without pondering any significant changes from the present strategy.
The four-day official visit by Nepali Prime Minister Pushpa Kamal Dahal 'Prachanda' to New Delhi, which began on May 31, was an impressive diplomatic achievement.
The Prime Minister of Nepal assumed office in December 2022. Opting for India as his inaugural foreign destination signifies the deep-rooted historical relations between the two nations and represents a departure from his previous stance. Despite being perceived as a pro-China figure by many, Prachanda's visit to India conveys a significant message, underscoring the enduring and robust partnership between Nepal and its closest ally.
Since coming to office in December 2022, Prachanda has continuously emphasised the determination of the new administration to forge an amicable and reliable diplomatic alliance with India. The strategy chosen by the government guarantees that there won't be any substantial changes in their attitude towards any of the two nations, keeping a fair and consistent posture.
Among the first to congratulate Pushpa Kumar Dahal on establishing the administration, Prime Minister Narendra Modi reaffirmed the cordial ties between the two nations. Both sides expressed delight for working closely together and moving forward as a unit, realising the natural affinity and unique strength of their bilateral ties.
By highlighting the steadfast commitment to respect, collaboration, and sovereign equality between the two countries, Prime Minister Dahal of Nepal hopes to deepen the long-standing and complex connections between them. Deeply ingrained historical, religious, cultural, economic, and political ties exist between India and Nepal.
In addition to having open borders, India and Nepal have promoted a culture of unfettered travel that has made it possible for citizens of both countries to form marriage and family ties. India has historically viewed its relationship with Nepal from a wider perspective, realising that the bilateral relationships cover much more than just strategic calculations. This is done while appreciating the tremendous strategic relevance Nepal bears in India's geopolitical and security concerns.
Instead, India's interaction with Nepal has been governed by its core belief that "the world is one family" and its "Neighbourhood First" policy. In line with this strategy, India has given support and grants for infrastructure development, the promotion of cultural ties, the improvement of human development indicators, and assistance to Nepal in times of need like the 2015 earthquake as a top priority.
India and Nepal are actively working together on a number of development initiatives. The Ramayana Circuit, which effectively connected several important locations in both countries, is one outstanding project. Prime Minister Narendra Modi lay the cornerstone for an Indian monastery on his earlier visit, which was a key turning point for bilateral relations.
Notably, several infrastructure initiatives as well as other cooperative projects are also progressing significantly. India has received a proposal from Nepal to take up the problematic West Seti hydroelectric project. IIT Madras and Kathmandu University have successfully collaborated in the area of education, leading to the creation of a combined degree programme. Further solidifying links in the cultural and academic arenas is the agreement to create the Dr. Ambedkar Chair for Buddhist Studies between Lumbini Buddhist University and the Indian Council of Cultural Relations (ICCR).
It is thought that one of the most important areas of collaboration between India and Nepal is the hydropower industry, which has emerged as a vital motivator for improving bilateral relations. India has emphasised this sector's growth more recently because it sees the potential for it to generate success for both countries and improve ties between them.
The 900 MW Arun III hydropower project is moving forward at an expedited rate and is being constructed by a Satluj Jal Vidyut Nigam (SJVN) subsidiary. India has taken additional action to support Nepal by signing a contract for the development of the 750 MW West Seti project between Nepal and India's National Hydro Electric Power Corporation Private Limited (NHPC Ltd). Due to a Chinese company's claim of financial feasibility, this project has experienced standstill. Additionally, an Indian company, GMR, has taken on the development of the 900 MW Upper Karnali Project, signalling increased cooperation in the hydropower industry.
In recent developments, Nepal has resumed exporting electricity to India, taking advantage of the surplus power generated during the Monsoon season. Since last Saturday, Nepal has been exporting approximately 600 MWh of electricity to India on a regular basis. This marks a positive stride in the energy cooperation between the two nations and capitalizes on Nepal's capacity to generate excess electricity during this period.
It is worth highlighting that Nepal has achieved significant earnings of NPR 11 billion from June to December 2022 through the export of hydropower to India. In a bid to enhance efficiency and certainty in power trade, Nepal has put forward a proposal for a 25-year bilateral agreement to replace the existing annual renewal system. This proposed agreement aims to establish a more stable and predictable framework for power trade between the two countries, ultimately fostering a conducive environment for long-term collaboration and mutual benefits.
In response to the growing trade deficit between Nepal and India, Prime Minister Prachanda of Nepal has raised the issue and made a request for non-reciprocal market access for Nepal's agricultural products, along with simplified Rules of Origin for other goods. This request aims to address the trade imbalance between the two countries and create a more favorable trade environment for Nepalese exports, particularly in the agricultural sector. By seeking these measures, Nepal aims to enhance its trade prospects and foster a more balanced and mutually beneficial economic relationship with India.
During the discussions, both leaders explored the potential establishment of testing laboratories and the formalization of arrangements for the mutual recognition of test certificates. Prime Minister Pushpa Kamal Dahal further urged for the removal of the anti-dumping duty imposed on Nepali jute products, emphasizing the significance of fostering a favorable trade environment. These discussions reflect the shared commitment to enhancing trade facilitation measures and creating a conducive atmosphere for bilateral trade between the two nations.
Prior to his visit to India, Dahal granted approval for the Draft Project Development Agreement, paving the way for the third project on the Arun River, following the 900 MW Arun-III and 695 MW Arun-IV hydroelectricity projects. These three projects collectively will generate nearly 2,300 MW of electricity from the river, located in the Sankhuwasabha district.
The relationship between India and Nepal extends beyond conventional diplomatic ties; it is founded upon principles of mutual respect, sovereign equality, and a shared history, as well as robust cultural connections. India's unwavering commitment to a policy of non-reciprocity with Nepal further underscores the enduring civilizational and traditional bonds between the two nations.
The recent visit of Foreign Secretary Vinay Kwatra to Nepal underscores India's unwavering commitment to fostering and strengthening the bilateral relationship. It highlights the utmost priority that India places on nurturing ties with Nepal. As the journey of collaboration and cooperation between the two nations progresses, India and Nepal are poised to navigate the future together, cultivating a bond that is not solely driven by strategic interests but also by the shared values and aspirations of their people-to-people connections.