By S. Habib

Maharaja Ranjit Singh, recruited Nepalese people from Gorkha District into his army after the battle of Kangra, in 1815. British also when wanted to keep an open border with Nepal to expand the economic and security interests of the East India Company (EIC) to Nepal and beyond; recruited Nepali hill people into the army without restrictions. Independent India again retained the open border with Nepal, and Article VII of the  India-Nepal Treaty of Peace and Friendship-1950 grants, “on reciprocal basis, to the nationals of one country in the territory of the other the same privileges on matters of residence, ownership of property, participation in trade and commerce, movement and other privileges of a similar nature”. As a result, even though there were check-posts at 26 locations along the India-Nepal border, people from either country could cross over from any point and as many times a day as they liked without any interrogation. With the Treaty of 1950, India and Nepal cemented their diplomatic relations in addition to the free movement of people and goods between the countries, also allowed for collaboration in security matters too.

In 1947, The Tripartite Agreement, which was signed by Nepal, India and Britain which allowed Nepalese soldiers to serve in the Indian Army while assuring them financial security and benefits. Gorkha recruitment into the Indian Army has significant geopolitical implications, especially since it was against Nepal’s foreign policy of non-alignment. Despite opposition from some political parties, Nepali youth from the indigenous hill communities in the western parts of the country were interested in these positions due to the pay, perks, and other social security benefits in the Indian Army. Every year, hundreds of Nepali men joined the armies of India and Britain in an arrangement dating to the early 19th century. Today, there are about 30,000 Gurkhas serving in the Indian Army and the total number of veterans of the force exceeds 100,000. The remittances Gurkhas send home have given Nepal an economic cushion during difficult times. Their contribution to Nepal’s GDP is comparable to that of the country’s fishing or transport sectors, at around 3.7 percent in 2015. Currently, about 122,000 Gorkha pensioners in Nepal receive support from the Indian government.

Critics in Bhutan perceived that treaty of 1950 was signed by India in the wake of threat emanating from the China at that time. Later on in 2006, Nepal dismantled its 240-year-old monarchy as a result of alleged India’s political support. Therefore, the distinctive components of the bilateral relationship began to drift towards China presenting itself as an alternative partner and one key domestic development in Nepal making India an unpopular neighbour.

In 2015, Nepal promulgated a new constitution which also upset India’s interests and expectations, especially since it was promulgated without considering New Delhi’s concerns over the Madhesh province, which borders India. The Madhesi leaders capitalised on India’s soft support by blocking border checkpoints and interrupting the entire supply system, which led to a massive humanitarian crisis in Nepal triggered by fuel and cooking gas shortages. This situation dented India’s image in Nepal’s political and civilian spaces, even as China increased its engagements through aid and assistance.

The demonetisation of specific Indian currency notes in 2016 caused a further strain in the bilateral relationship. Nepali banks, financial institutions, and individuals were said to hold over INR 7 billion (approximately US$108 million) of the banned Indian notes. Nepal has repeatedly urged India to permit the exchange of these notes, but there has been no progress. This has further tarnished India’s image in Nepal.

Following the abrogation of Article 370 of the Indian constitution in 2019, which ended Jammu and Kashmir’s special status, India updated its political maps to include within itself the disputed territories with Nepal. The long-standing border issue was aggravated when India opened a strategically important link road connecting the Lipulekh Pass (which Nepal claims) with Dharchula, both in the Indian state of Uttarakhand. In May 2020, Nepal responded by publishing a new political map that included the disputed territory. Since then, neither side has attempted to resolve or mitigate the border dispute.

In 2022, India’s new Agnipath scheme for soldiers is introduced, but the repercussions of scheme were also being felt beyond India’s borders, as it created some tensions in Nepal. Under the policy, youth between the ages of 17-and-a-half to 21 years will be recruited in the armed forces for four years of service. After which only up to 25 percent of each batch will be inducted into the regular ranks to serve for at least another 15 years. The rest will be let go with a lump sum of about $15,000, without the pension or benefits career service members enjoy. India has not consulted Nepal regarding the Agnipath scheme applying to recruitment of Gorkhas, who have loyally served the Indian Army for over 200 years now facing an uncertain future due to the controversial short-term recruitment scheme.

After formation of new government as a result of recent elections, Nepal will apt proclaim its official retort to Agnipath scheme and border disputes with India.  Because implementation of the scheme has invigorated debates over the provisions in the 1947 tripartite agreement also. Nepal’s new government may consider the various factors associated with Gorkha recruitment, including social, economic, political, and diplomatic and regional issues. The Sher Bahadur Deuba administration is also concerned about the future of the Nepali youth after completing the four-year service as per Agnipath and the possible impacts on Nepal’s internal security and may mull over its foreign policy also.