




Any effort to redesign the bilateral relationship must inevitably focus on the future of the 1950 treaty of peace and friendship, which has become the lightning rod for Nepal’s many political resentments against India. Making the case for an equal relationship with India, Prachanda asked for review and revision of the treaty. Recognising the urgency of bringing bilateral ties up to speed, India readily agreed. Having recast in 2006 a similar treaty signed with Bhutan in 1949, India is well-prepared for change. The India-Nepal treaty, however, covers much wider ground — for example, the mutual extension of national treatment to individuals and entities from the other country. Kathmandu has benefited immensely from this unique arrangement with New Delhi that allows Nepalese citizens to work in India, including in its elite central civil services. Neither country has such agreements with any other. New Delhi and Kathmandu must find ways to preserve the many positive provisions of the 1950 treaty while removing those that smack of inequality.
In ordering a reactivation of all existing bilateral mechanisms to resolve disputes and enhance cooperation, Dr Singh and Prachanda have rightly chosen to strengthen the institutional foundation of the bilateral relationship. For too long, the obsessive focus on personal relations prevailed over the need for a systemic transformation of the
India-Nepal engagement. During his visit, Prachanda has sought to assuage the many Indian misgivings about him. India, in turn, has agreed to start afresh with the new Nepal. Having said all the right things, New Delhi and Kathmandu must now act quickly to modernise the unique bilateral relationship. Popular expectations in both countries are high and the period of diplomatic probation short.


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