Dynamics of India-Nepal Relations with reference to China Factor

Abstract

India and Nepal are two neighboring countries, located in South Asian region. In the wake of central geographical location in the South Asia, previously India was the only player, who was enjoying privileges in the whole region. A friendship treaty was signed between the both in 1950, imposed restriction on latter in defence sector. This treaty laid some provisions, according to which Kathmandu could not purchase any kind of weaponry and ammunition from any third party. Nepal as a buffer state between two Asian giants India and China shares common social, cultural similarities, which is casting shadow on relationship of both. India and Nepal signed friendship treaty in 1950 and diplomatic relations between China and Nepal were underlie in 1955. First, China resolved border issue with Nepal in 1960 so that neutrality of latter can be ensured on any lateral conflict with India and Tibet. Hence, construction of a road from Tibet to Nepal is another major step taken by China, which effected balance of power in Himalayan region in favor of China. China has become major source of foreign direct investment for Nepal and Chinese investment reached to 174 million US dollars in 2013-14 in Nepal. Both India and China are providing huge amount of money in the form of economic as well as military aid to Nepal in order to enhance their leverage in the country. Nepal is a country located in the Himalayas, which now providing inroads to China to enter in the South Asia, which is a serious cause of concern for India from strategic point of view.