The Himalayan country of Nepal lies between India and the Chinese territory of Tibet. Hence, good relations with Nepal are crucial for India’s security.
Nepal is a landlocked country, and almost all its imports pass through the Indian port of Kolkata. Nepal is also economically dependent on India.
In 1950, India and Nepal signed a treaty of peace and friendship and a treaty of trade and commerce. Since then, India has supplied arms to Nepal, given Nepal economic assistance and helped develop communication and transport systems in Nepal. India also helped Nepal to acquire UN membership in 1954.
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Nepal’s closeness with China in the early 1960s alarmed India. However, Nepal remained neutral during the Sino-Indian war of 1962.
After 1962, India improved relations with Nepal through economic aid and trade. In the Indo-Pak wars of 1965 and 1971 Nepal supported India’s cause. Sikkim’s accession to India in 1975, however, drew protests from the people of Nepal.
Today, India continues to help Nepal in fields such as trade, education, industry, transport and communication, water management and power generation.