India and Nepal shares cultural, religious, historical as well as geographical ties. Himalayan range divides at the same time it binds us. Nepal being a land locked country needs India’s serious help in regards with trade. India provides a major route for trade to Nepal.
India is Nepal’s largest trading associate and the largest source of foreign investment. There are several hydroelectricity projects running between Nepal and India like Kosi-gandaki, Arun-3 and Pancheshwar Multipurpose dam projects etc Both countries have a free trade agreement with each other.
Both countries share cultural ties, in terms of having a large number of Hindu populations. Almost 80% of Nepal’s population is Hindu. The Nepal has great ties with Indian states like Bihar and Uttar Pradesh.
Nepal considers kalapani as part of Darchula district of Nepal. This spot specially Lipulekh pass lies on tri-junction of India- Nepal and China border and thus have strategic significance. In 2015 China recognised India’s sovereignty over this pass. And recently India has started building a new road on this pass to connect India and China. But Nepal is protesting this construction. The act of India to remove the actual name of Kali River from its map put Nepal in distress, though there was no ulterior intention from the part of India. The conflict rests in the source of Kali River. Geographically the river course changes with time. The Treaty of Sugauli, 1816 between British India and Nepal claims that, Nepal cannot abridge its territory beyond river kali. Though the course of river is not static, the source of such river gain prime importance and there is no consensus between both countries regarding a particular source of the river.
Recently Nepal has brought a constitutional amendment and changed the map of Nepal (Cartographic Assertion) depicting Kalapni area as a part of Nepal.