Resetting Indo-Nepal relations

By all accounts Narendra Modirsquos Nepal visit the first by an Indian prime minister in 17 years has been a success He has struck the right notes made the right moves and has put across the Indian case without overdoing things In 1997 when Prime Minister Inder Gujral was in Kathmandu he told the Nepalese that they had Indiarsquos ldquopower of attorneyrdquo to rewrite their relationship with India with whatever words they wanted Such a document was not Gujralrsquos to give and made little sense in the context of the civil war that was raging in the country at the timePrime Minister Narendra Modi and his Nepali counterpart Sushil Koirala during the signing ceremony at Chambers PMO Singha Durbar in Kathmandhu Nepal on Sunday PicPTIOn the other hand Modi has gone out of his way to tell the Nepalese political community that India is committed to a policy of noninterference in the countryrsquos political affairs howsoever tangled they may be ldquoIt is not our job to interfere in your internal affairs but to assist you in the path you have chosenrdquo he said in a wellreceived speech to Nepalrsquos Constituent Assembly In addition India a traditional donor to Nepalrsquos development assistance programmes has offered 1 billion line of credit to build power plants and roadsThe agenda for IndoNepal relations is a vast one ranging from readjusting the foundational IndoNepal Treaty of 1950 to living up to the enormous potential offered by the joint development of the Ganga river basinThe occasion of a prime ministerial visit is of course one where nice things are said and high principles and plans outlined However Nepal and India are deeply bound by strategic relations of the closest kind as much a function of geography as history In the past India has sheltered activists protesting the rule of the king and in turn Nepal has been used by forces adverse to India Differences between the two countries have led to a lot of heartburn and prevented the effective exploitation of the Ganga river basin either for irrigation and flood control or hydropowerBut in recent years both sides have learnt to respect each otherrsquos red lines and also understood their respective limitations Nepalese authorities have aided their Indian counterparts to check the activities of terrorists who have often sheltered in NepalThere is a clear sense that the Modi visit lead to a reset of IndoNepal relations The statements of Nepalese leaders across the spectrum from the monarchists to the Maoists suggest that the moment may be now Even Prachanda the leader of the Nepalese Maoists expressed his view that a new chapter appeared to be opening in NepalIndia relations as a result of the visitThe key to good IndiaNepal relations rest in overcoming the problem of asymmetry in their physical economic and geographical circumstances Nepal is a poor agrarian landlocked state while India is a vast subcontinent with a great deal of poverty but also significant pockets of affluence Geography in the form of the high Himalayas lock Nepal into India No matter how many roads and even railroads the Chinese build to link up to Nepal its economic orientation will remain towards India This has been a matter of concern and some resentment in NepalIt is true that India has at times in the past been an overbearing neighbour But some of it has been overstated by Nepalese politicians for their narrow ends after all blaming another country for your ills always plays well in the political street theatre But in recent years after Nepal threw out the monarchy the Nepalese public too has become more aware of the situation and is not easily swayed by Indiabaiters as the Nepalese Maoists learnt to their costThe IndoNepal Treaty of 1950 has been a major target of the Nepalese ire It is thought to symbolise Nepalese inferiority to India Under Article 5 Nepal is committed to import its arms through India Articles 6 and 7 provide same privileges to citizens of either country in the matter of residence ownership of property participation in trade and commerce and movement This enables the Nepali and Indian citizens to move freely across the border without passport or visa live and work in either country and own property or do trade or business in either countryThis is surely a unique relationship not even equalled by that between the US and Canada But it generates resentment in Nepal While it is true that literally millions of Nepalis live and work in India there are far fewer number of Indians doing the same in Nepal because of the economic environment thereWhile Article 5 has become more or less redundant and India is not particularly keen to press Nepal to acquire its arms through its territory and therefore exercise a degree of control over them Articles 6 and 7 are important and benefit Nepal far more than they do India Nepali leaders often speak of rewriting the 1950 treaty but when push comes to shove they back offFor this reason Prime Minister Modi reiterated Indiarsquos willingness to review and rewrite the treaty ldquoMy doors are open I invite you to bring any suggestions to review the 1950 treaty if you so wantrdquo he declared at a banquet hosted by Nepalese Prime Minister Sushil Koirala in Kathmandu on SundayThe new Indian approach to Nepal and to the South Asian region form a core of the Modi governmentrsquos foreign and security policy The goal is to bind them closer to India through a web of economic relationships one which ties Indiarsquos prosperity to their growth as well But to implement this vision Modi needs to offer not just economic carrots but also untangle the political issues that have bedevilled relations between India and themThe writer is a Distinguished Fellow Observer Research Foundation New Delhi