Which are the Contentious Issues Between India and Nepal?

India and Nepal share one of the closest and most unique relationships in South Asia. The two countries are linked by history, geography, culture, religion, trade, and people-to-people ties. Citizens of both countries can move freely across borders without passports or visas, work in each other’s territories, and even serve in each other’s armies. This deep connection makes the relationship special, but it also means that small disputes can sometimes grow into larger issues.

In recent decades, several contentious points have emerged between India and Nepal. These issues are not always new, but they become visible whenever political, economic, or diplomatic challenges arise. Let us now look at these issues in detail, understand their background, and examine how they affect the relations between the two neighbors.

1. Border Disputes

One of the most serious sources of contention between India and Nepal is the border dispute.

a) Kalapani, Lipulekh, and Limpiyadhura Dispute

The most well-known border issue is around the Kalapani region, which lies at the trijunction of India, Nepal, and China (Tibet).
Nepal claims that the territories of Kalapani, Lipulekh, and Limpiyadhura belong to it, based on the interpretation of the Sugauli Treaty of 1816 signed between the British East India Company and the King of Nepal.
According to Nepal, the river Kali was accepted as the boundary, and since the origin of the Kali River is near Limpiyadhura, the entire region east of it should belong to Nepal.
India, however, maintains that the Kali River originates near Kalapani, and therefore, the area of Lipulekh and Kalapani falls within Indian territory.

The dispute gained serious attention in 2019–2020:

In 2019, India released its new political map after the reorganization of Jammu and Kashmir, showing Kalapani within Indian borders.
Nepal strongly protested.
In 2020, India inaugurated a road to Lipulekh Pass, which Nepal opposed, saying it was built on its land.
In response, Nepal passed a new map through its Parliament that included Kalapani, Lipulekh, and Limpiyadhura as its own territory.

This border dispute remains a sensitive and emotional issue in Nepal and continues to create mistrust.

b) Susta Dispute

Another disputed area is Susta in Nawalparasi district.
The shifting course of the Gandak River has led to territorial changes, and both India and Nepal claim parts of this land.
Although less high-profile than Kalapani, this issue also causes tension.

2. The 1950 Treaty of Peace and Friendship

The 1950 Treaty of Peace and Friendship between India and Nepal is another source of contention.

Key Features of the Treaty:

Citizens of both countries can live, work, and own property in each other’s territory.
Nepalese citizens can serve in the Indian Army.
India pledged support for Nepal’s sovereignty and security.

Why is it Contentious?

Many political groups in Nepal believe the treaty is unequal and gives India too much influence over Nepal’s affairs.
They argue that Nepal’s sovereignty is compromised, as India has special rights in trade, transit, and defense matters.
Some in Nepal demand either a complete cancellation or a major revision of the treaty.

From India’s point of view, the treaty symbolizes friendship and open relations, but from Nepal’s perspective, it sometimes looks like Indian dominance.

3. Economic Dependence and Trade Issues

Nepal is a landlocked country, and it depends heavily on India for trade and transit. Almost all of Nepal’s imports and exports go through Indian ports.

Points of Contention:

Transit dependence: Nepal feels vulnerable because it must rely on India for access to the sea.
Trade imbalance: India exports far more to Nepal than it imports, creating an economic imbalance.
Blockades: Whenever political tensions rise, Nepal feels that India indirectly pressures it by restricting goods at the border.

Example: The 2015 Blockade

In 2015, after Nepal adopted a new Constitution, the Madhesi community in southern Nepal (with close ties to India) protested.
During this time, supplies of fuel, medicines, and essential goods from India to Nepal slowed down.
Nepal accused India of an “unofficial blockade,” though India denied it.
This blockade caused a deep sense of resentment among Nepalese citizens and is still remembered as a major low point in relations.

4. Political Interference

Another major issue is the perception that India interferes too much in Nepal’s domestic politics.

Many political leaders and citizens in Nepal feel that India tries to influence Nepal’s governments, elections, and Constitution-making process.
India’s support for certain groups, such as the Madhesi community, is often viewed as meddling in Nepal’s internal affairs.
The frequent visits of Indian leaders and officials, sometimes during political crises, strengthen this perception.

From India’s side, involvement is often explained as an effort to ensure stability and security in a neighboring country with which it shares deep ties. However, in Nepal, it is sometimes seen as interference.

5. China Factor

The presence of China adds another layer to India–Nepal tensions.

Over the last two decades, Nepal has increased its engagement with China in trade, infrastructure, and investment.
China has also built roads, railways, and hydropower projects in Nepal.
Some leaders in Nepal promote the idea of reducing dependence on India by strengthening ties with China.

From India’s perspective, Chinese influence in Nepal raises strategic and security concerns, especially in border areas close to Tibet.
This competition between India and China in Nepal sometimes creates friction in India–Nepal relations.

6. Water Sharing Issues

Since Nepal is a river-rich country and many rivers flow into India, water management has also become contentious.

Examples:

Kosi Agreement (1954) and Gandak Agreement (1959) were signed to build dams and barrages.
However, Nepal feels that these treaties benefited India more than Nepal.
Flooding in Nepal’s Terai region is often blamed on dams and embankments built by India.

Thus, water sharing and flood management remain sensitive issues.

7. Nationalism and Public Sentiments

Sometimes, the disputes are not just about territory, treaties, or trade but about national pride and emotions.

In Nepal, strong nationalist feelings are often expressed against India, especially when issues like Kalapani or blockades arise.
Political parties in Nepal sometimes use anti-India sentiment to gain popularity.
On the other hand, in India, Nepal is often expected to be a “natural ally,” and any move towards China is seen with suspicion.

This gap in expectations sometimes leads to misunderstandings.

8. Security Concerns

India is always concerned about the misuse of the open border.

Illegal activities like smuggling, human trafficking, and cross-border crime happen easily.
There are also fears that hostile groups or foreign powers may use Nepalese territory against India.

Nepal, however, feels that India exaggerates these issues to justify a tighter grip on security cooperation.

The relationship between India and Nepal is like that of very close relatives—full of warmth, but also prone to misunderstandings. The main contentious issues are:

1.Border disputes (Kalapani–Lipulekh–Limpiyadhura and Susta).

2.1950 Treaty of Peace and Friendship, seen as unequal by Nepal.

3.Economic dependence and memories of blockades.

4.Perception of Indian interference in Nepal’s politics.

5.China’s growing role in Nepal.

6.Water sharing and flood management issues.

7.Nationalist emotions on both sides.

8.Security concerns linked to the open border.

Despite these disputes, the India–Nepal relationship has survived and remained strong because of deep cultural, social, and religious ties. Both countries must handle these issues with sensitivity, respect, and dialogue.

The way forward lies in:

Respecting each other’s sovereignty.
Resolving border disputes through diplomatic talks.
Reviewing old treaties in a spirit of equality.
Promoting balanced trade and development partnerships.
Ensuring that political issues do not hurt people-to-people relations.

If handled with care, the friendship between India and Nepal can overcome these contentious issues and remain an example of cooperation in South Asia.