UPSC CURRENT AFFAIRS – 03rd April 2025
India, Nepal ink 10 MoUs worth Nepalese Rs.625 million for community development projects
Why in News?
India and Nepal signed 10 MoUs under the High Impact Community Development Projects (HICDPs).
Introduction
- India and Nepal have signed 10 Memorandums of Understanding (MoUs) on April 1, 2025, for the development of education, health, and cultural sectors in Nepal.
- These projects, funded by Indian assistance amounting to Nepalese Rs. 625 million, are part of the High Impact Community Development Projects (HICDPs) under the Nepal-India Development Cooperation initiative.
Key Highlights of the Agreement
- Total Projects Signed: 10
- Total Indian Assistance: Nepalese Rs. 625 million
- Sectors Covered: Education, Health, and Culture
- Major Projects:
- Construction of three schools
- Establishment of one monastery
- Development of one e-library at a school
- Construction of two health post buildings
Significance of HICDPs
- Strengthens India-Nepal bilateral relations through developmental cooperation.
- Enhances education, healthcare, and cultural infrastructure for Nepalese citizens.
- Reflects India’s continued commitment to Nepal’s socio-economic growth.
- Builds on the 573 HICDPs undertaken by India in Nepal since 2003, of which 495 projects have been completed.
India-Nepal Relations
- India and Nepal share deep-rooted historical, cultural, economic, and strategic ties. Their relationship is guided by geographical proximity, open borders, and strong people-to-people connections.
- Both countries collaborate across multiple sectors, including trade, security, energy, infrastructure, and development assistance.
Key Aspects of India-Nepal Relations
- Historical and Cultural Ties
- Nepal and India share centuries-old civilizational and cultural linkages, including Hinduism and Buddhism.
- Ramayana and Mahabharata linkages: Janakpur (Sita’s birthplace) and Pashupatinath Temple in Nepal are revered by Indians.
- Strong people-to-people ties due to intermarriages and social exchanges, especially in the Terai region.
- Political and Diplomatic Relations
- India was among the first countries to recognize Nepal’s sovereignty.
- The 1950 Treaty of Peace and Friendship allows for free movement of people and economic cooperation.
- High-level visits strengthen ties, such as PM Modi’s multiple visits to Nepal and Nepalese leaders’ visits to India.
- Economic and Trade Relations
- India is Nepal’s largest trade partner, accounting for over 60% of Nepal’s total trade.
- Major Exports from Nepal to India: Agriculture products, jute goods, textiles.
- Major Imports from India to Nepal: Petroleum products, machinery, food items.
- India provides development assistance under schemes like High Impact Community Development Projects (HICDPs).
- Infrastructure and Connectivity
- India supports road, rail, and air connectivity projects in Nepal.
- Notable projects:
- Raxaul-Kathmandu Railway (proposed).
- Integrated Check Posts (ICPs) for smoother border trade.
- Motihari-Amlekhgunj Petroleum Pipeline – Nepal’s first cross-border pipeline.
- Hydroelectric Projects for energy security.
- Water and Energy Cooperation
- India and Nepal share transboundary rivers like the Ganga, Kosi, Gandak, and Mahakali.
- Hydropower agreements:
- Upper Karnali Hydroelectric Project.
- Arun III Hydropower Project (900 MW) developed by India’s SJVN.
- Cross-border electricity trade under the India-Nepal Energy Agreement.
- Security and Defense Cooperation
- Nepal and India share an open border, and security cooperation is crucial.
- Indian and Nepalese Armies have close ties – India recruits Gorkha soldiers into the Indian Army.
- Regular bilateral military exercises, such as SURYA KIRAN.
- India supports Nepal’s disaster management and defense infrastructure development.
- Development Assistance
- India has undertaken over 573 High Impact Community Development Projects (HICDPs) in Nepal.
- Sectors covered: education, health, infrastructure, culture.
- Example: Construction of schools, hospitals, and monasteries in Nepal.
Conclusion
- The signing of these MoUs reinforces India’s development partnership with Nepal, focusing on grassroots-level impact.
- By augmenting Nepal’s infrastructure in key sectors, these projects contribute to the long-term well-being of the Nepalese people and further
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