India-Nepal relations are marked by close cultural ties and cooperation, but also face periodic tensions. While both countries collaborate in areas like trade, hydropower, defense, and disaster relief, issues such as border disputes, China's growing influence, and security concerns have strained the relationship.

Areas of Conflict:

• Border Disputes: Regions like Kalapani and Susta remain contested.

• China’s Influence: Nepal’s growing ties with China raise Indian concerns.

• Security Risks: The open border allows illegal activities and poses threats.

• Trust Deficit: Perceived Indian interference and slow project execution affect ties.

• 1950 Treaty: Nepal seeks revision of the Treaty of Peace and Friendship.

Areas of Cooperation:

• Trade & Investment: India is Nepal’s largest trade partner and investor.

• Hydropower: Growing cooperation in energy, with India buying Nepalese power.

• Defense Ties: Joint military exercises and shared traditions.

• Disaster Relief: India has aided Nepal during major natural disasters.

• Cultural Links: Open borders support strong people-to-people contact.

Challenges & Opportunities:

• Balancing China’s Role while preserving strong India-Nepal ties.

• Water resource management and flood control cooperation.

• Addressing citizenship, economic, and cultural issues.

• Promoting mutual trust and continuous dialogue for a stronger partnership.