Article

India–Nepal Open International Studies

50(1&2) 165–183
Border: Springboard for 2016 Jawahalal Nehru University
SAGE Publications
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DOI: 10.1177/0020881716654406
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Rajeev Kumar1

Abstract
India and Nepal have shared intense people-to-people relations for a very long
time. Geographical factors have been reinforced by religious, cultural and ethnic
affinities between the inhabitants of the Terai region and their counterparts across
the border. The 1950 Treaty of Peace and Friendship between India and Nepal fur-
ther reinforced the need for an open border for encouraging free movement of
people and commodities across the borders. The open border has contributed
significantly towards a shared feeling of belongingness, especially at the border. As
India and Nepal share many commonalities, the open border can always be har-
nessed as a springboard for opportunities which are aplenty on both sides of the
border. This article delves into the mutual needs of the people across the open
border, a lifeline for inhabitants of the border regions and the steps taken at the
people-to-people and the government level for the continuance of the ‘benefit-
factor’ between each other in times of well-being and distress.

Keywords
Open Border, Terai, 1950 Treaty, Trade and transit, Cooperation, Security,
Connectivity

Introduction
Borders are complex constructs of human beings. The dynamic concept of a bor-
der which refers to a space of transition has been enlarged to include socio-eco-
nomic constructs other than the political constructs thereby making the idea of
interdependence central to studying borders. Borders are, thus, ‘the model com-
partment of space resulting from partitioning, diversification, and organization...
endowed with two main functions: to serve on the one hand as a shelter for

1
Research Assistant, Centre for Land Warfare Studies, Delhi Cantt, New Delhi, India.

Corresponding author:
Dr Rajeev Kumar, A-304, Navin Apartments, Plot No. 13, Sector-5, Dwarka, New Delhi, 110075, India.
E-mail: rajeev6jnu@gmail.com
166 International Studies 50(1&2)

security and on the other hand as a springboard for opportunity’ (Nicol & Minghi,
2005, p. 684). India and Nepal share exactly such a border where both the func-
tions converge while shaping their relationship. The India–Nepal open border has
proved, since a long time back in history, to be a springboard of opportunities and,
thus, tries to convince us that ‘neighbouring countries usually have natural com-
mon interests and that no country can now, in this era of globalization, be abso-
lutely isolated from its neighbour’ (Kolossov, 2005, p. 614).
Few neighbours in the world share a relationship as close, interdependent and
comprehensive as India and Nepal do. Geography and history concomitantly with
culture and customs have shaped from time immemorial the profound interaction
between the people of the two countries largely due to the open border arrange-
ment. In fact, the India–Nepal relationship can best be defined through the open
border system. The open border stands out as the cornerstone in widening and
deepening their bonds of ties. The close proximity has been firmly founded on
unrelenting commitment towards understanding of each other’s aspirations and
interests. In essence, the relationship between these two countries is much more
than the sum of treaties and agreements concluded between them. The India–
Nepal border is special for three reasons. First Nepal is surrounded by land for all
the 3222 km of its frontier, it has no access to any ocean (Hans, 2009). This land-
locked status has great impacts on Nepal’s economy, as it is dependent on its
neighbours to import goods from third countries. The second is the aspect that
Nepal has only two neighbouring countries, which are the countries with the big-
gest population of the world, China and India (Hans, 2009). Nepal’s northern
Himalaya region borders on the Tibetan autonomous region of China, in the south,
east and west it is surrounded by India’s states of Uttarakhand, Uttar Pradesh,
Bihar, West Bengal and Sikkim (from west to east). The third special aspect is the
open border between India and Nepal, which allows people of both countries to
cross the border without a visa and to take goods for everyday usage across the
border without paying customs (Hans, 2009). Besides the economic relations
across the border, their populations are closely linked with cultural and social ties,
especially in their border areas. Therefore, the open border gives the opportunity
for people to live their social life unrestricted of the border.
The border region of India and Nepal, characterized by easy accessibility to
other regions, is an epitome of a feeling of belongingness. The India–Nepal bor-
der is an example of how geography can help in interlinking two countries. The
paddy fields, sugarcane fields, orchards, industries, settlements, roads and mar-
kets stretch from one side to the other side of the border, thereby making it diffi-
cult to recognize the border unless one follows the boundary demarcation pillars.
In fact, it is said that there are houses situated on the border where one door opens
towards Nepal and the other towards India (Thapliyal, 1999). The overwhelming
presence of people of Indian origin and the presence of Nepalese population in the
Terai region contiguous to the India–Nepal border has made socio-cultural inter-
course indispensable. The 1751 km long open border has, thus, not only facili-
tated socio-cultural exchanges that date back to centuries but have been
Kumar 167

strengthened by age old historical ties (Thapliyal, 1999). Both the countries and
their people, in the past, have been seen as inclined towards each other, owing to
geographical factors which have further been reinforced by religious, cultural and
ethnic affinities between the inhabitants of the Terai region and their counterparts
across the border. Therefore, the Terai region has remained practically an expan-
sion of the Indian society and economy through the centuries (Regmi, 1984).
India–Nepal relations, thus, encompass a broad spectrum of political, economic,
social and cultural ties that are deep-rooted at both government and peoples’ lev-
els. Jawaharlal Nehru, a great advocate of close India–Nepal ties, once said,
‘Broadly speaking, our relations depend not really on any person’s goodwill, on
Nepal’s goodwill; on that government or this government...They depend on geog-
raphy and history, which cannot easily be done away with’ (cited in Bhasin, 1970,
p. 55).

India–Nepal Border and the 1950 Treaty

The Treaty of Peace and Friendship concluded by the two countries in 1950 rein-
forced the need for an open border in view of various socio-economic provisions,
namely, encouraging the free movement of people across the border, business and
commercial interests like the supply of Nepali raw materials to India and beyond.
Article-VII of the treaty states: The government of India and Nepal agree to grant,
on reciprocal basis, to the nationals of one country in the territories of the other
the same privileges in the matter of residence, ownership of property, participa-
tion in trade and commerce, movement and privileges of a similar nature (Ministry
of External Affairs, 2014b).
The 1950 Treaty, thus, binds the two countries through socio-cultural and eco-
nomic linkages. Taking the open border into account, no impediment is placed on
the movement of people crossing the border, availing avenues for livelihood
(Thapliyal, 1998). However, there was no mention of the open border between
two countries. It only suggested that the border management system must be
reciprocated by both the countries (Shrestha, 2006). What it meant was that if an
open or regulated system was enacted by one country, the same system should be
implemented by the other on the basis of reciprocity. The answer may be that it
prevailed only on the basis of mutual understanding, good neighbourly relations,
religious sentiment, the same topography, social similarities and family relation-
ship (Shrestha, 2006).
There was also a very close contact among high-ranking political leaders of
both nations. While Nepalese leaders had participated actively in the independ-
ence movement of India, Indian leaders also contributed to establish democracy
in Nepal (Shrestha, 2006). The open border made the movement of political lead-
ers and bureaucrats of India and Nepal easy to shuttle back and forth without any
interrogation or check at the border. Moreover, many Indians and Nepalese shared
matrimonial alliances and most of them resided in the frontier. As a consequence,
168 International Studies 50(1&2)

Indian and Nepalese parents were in-laws to each other. Therefore, the border was
made open socially for frequent visits to the kith and kin on either side of the
frontier. The administration did not obstruct them in practice. Thus, the open bor-
der, impregnated with the spirit enshrined in the 1950 Treaty, helped in strength-
ening closer political and social ties between the two countries. This finally
culminated into the opening of the Terai to the traders, farmers and workers from
the plains of north India during the last two decades of the twentieth century. It
was done to encourage the clearing of the forest for farming. No difference, there-
fore, is found in the colour, language, values and culture among the people living
across the India–Nepal border. Because of the common values, culture, way of
life and the availability of a market for the Nepalese timber, herbs, rice, jute and
other forest products the tendency of liberalization became stronger than building
restrictions along the border (Roka, 2006). During the dry season, the ten-yard
stretch of no-man’s-land between the two countries is difficult to locate in many
places. In populated areas, these strips are used to winnow grain, dry clothes or
tether domestic animals in the daytime (Lal, 2002). On summer evenings, char-
poy string-beds are laid out in this peaceable frontier to catch the breeze. Indians
and Nepali relatives and neighbours warm themselves around open hearths during
the winter. Elsewhere, this strip is a common grazing ground, or serves as an open
toilet for people whose citizenship papers may just as easily say ‘Nepal’ or ‘India’
(Lal, 2002).
The contiguity of border helped the people on one side of the border make
cordial relations with their counterparts on the other side. People-to-people inter-
actions and contacts slowly brought them even closer. The relations among the
border inhabitants have been best reflected in emergency situations. Whenever
they have faced shortages of food grains or of any other commodity, people from
the other side of the border have met the requirements gleefully. People from both
sides of the India–Nepal border have lived together, survived the vagaries of
nature and prospered by co-operating with each other (Lal, 2002). They started
mixing among themselves and this further led to marriage alliances among them-
selves. As a result, people from India started filling the population vacuum in the
Terai through continuous settlements. The Terai region practically transformed
into a melting pot which saw an expansion of the Indian society and economy,
with the economy being the real motivator behind day-to-day contacts and affairs
(Rajbahak, 1992).

Population Movement across the India–Nepal Border

Thapliyal (1999, p. 778) writes:

The movement of people between India and Nepal owes its genesis to the physical
configuration of their border which does not present any natural barriers. Similarities in
the socio-cultural identities of the two countries encouraged the movement of people.
Kumar 169

Demarcation of borders between the two countries did not stop the movement of popu-
lation that continued due to economic exchanges and socio-cultural linkages.

The mutual needs of the people across the border promoted the unrestricted
flow of people over the years and led to the dissemination of ideas, culture and
settlements of people in each other’s territory. Religious places and institutions in
both the countries have played a very crucial role in strengthening the social and
cultural relations between them. Places like Puri and Rameshwaram in India and
the Pashupatinath Temple in Nepal have been revered by people of both countries.
The Pashupatinath temple continues to attract devotees in hordes to Nepal while
Bishwanath of Benaras and Baijnath of Jharkhand are two very important shrines
for Nepali Hindus (Lal, 2002). Festivals and cultural practices are nearly identical
in the Nepal Terai and the region to the south. Common people are also found
marrying across the border. Cross-border marital ties confer many advantages,
including legal title to property and a greater chance of obtaining dual citizenship
(International Crisis Group, 2007).
The border inhabitants have continued to move freely across the border. There
are three types of movements from Nepal. The first is that of people who come on
a daily basis to buy goods for domestic needs. Such movement is usually confined
to the border region. The second type is that of seasonal migrants, who generally
travel to India to find work during agricultural off-seasons. The third type of
migrants moves on a long-term basis and generally settles down in India. In the
second and third cases, migrants spread out both to neighbouring areas as well as
further away from the border (International Crisis Group, 2007). Similarly, the
flow of economic migrants from India has been stimulated as a result of moderni-
zation and development in Nepal which has been generating demands for skilled
and semi-skilled workers since early 1970s. Indians have also gone to Nepal for
teaching jobs and to set up small and medium sized business establishments
(Baral & Muni, 1996).

Opportunities across the India–Nepal Border

The open border between India and Nepal provides ample opportunities for the
people living across the borders in every aspect of life, namely, trade, education,
healthcare services, employment, entertainment, tourism, etc. The open border,
for them, is a bridge towards fulfilling their hopes and aspirations. In the past, it
has provided access to specialized and infrastructural facilities on the Indian side
for the Nepalese. Even today, for health services, education, entertainment and
other such facilities the Nepalese people living in the remote areas are extensively
dependent on India. Indian agricultural labourers also go to Nepal during the cul-
tivation and harvesting seasons and there they are known as Dakshinaha (south-
erners) (Upreti, 2009). The bordering Indian market provides opportunities to the
Nepalese to sell their products and to purchase goods of daily necessity and
170 International Studies 50(1&2)

luxury items, including petrol, kerosene, edible items, cloth, medicines and vari-
ous other goods. In many areas, people of the neighbouring Nepali region make
their marriage and festive purchases from the Indian market. In this regard, they
take advantage of quality and lower cost. The Indian market facilitates the border-
ing people of Nepal in three ways: availability of goods in case of crisis on the
Nepalese side, benefit of comparative prices and better market facilities for prod-
ucts including agricultural produce (Jha, 2012).
On both sides of the border in the Terai there are densely populated, industrial-
ized and rich agriculture belts with important urban centres all along (Upreti,
2009). This geographical situation has induced a particular pattern of relationship
between India and Nepal. The open border has become a way of life for the people
of the two countries. It has led to the development of a distinctive pattern of social
and economic relations between the two countries. The open border also has
important economic implications for the two countries. The rapid urbanization of
the Terai region has opened up economic opportunities for the inhabitants of the
border regions, as people from both the countries can cross the border and work
in each other’s country.
The ‘pull’ and ‘push’ factors of migration, like commonalities in a physical
setting, historical background, socio-cultural moorings, economic motive, repres-
sion, natural calamities and ethnicity and religion, have also been at work in the
India–Nepal case (Baral, 1997). Lack of economic opportunities in the hilly areas
of Nepal, scarce arable land and population pressure worked as centrifugal and
push factors in forcing the people of Nepal down from hills and settling in
Darjeeling (Datta, 2005). The socio-economic condition in Nepal is bad and the
government of Nepal has been unable to provide education and health for a large
part of its population. The depth of economic depression in the hills and poverty
has pushed the Nepalese to search for new settlements (Datta, 2005). The rapid
growth of the tea industry throughout the second half of the nineteenth century led
to the recruitment of tea plantation workers who mostly came from Nepal. The
easy crossing of the border due to geographical contiguity has also acted as a pull
factor for Nepalese to settle in bordering Indian states (Datta, 2005).
The open border also increases Nepal’s economic dependence upon India to a
considerable extent. The people of the Terai region are more dependent on the
bordering Indian market and traders for their daily necessities and employment so
that the economy of the Terai is viewed as an adjunct to that of India. It is very
helpful in sustaining their economy. The haats (weekly bazaars) that take place on
both sides of the border provide an opportunity to exchange goods and commodi-
ties of daily local needs.
On the part of the Nepalese population, the need for the open border emanated
from a lack of opportunities in Nepal. Transport problems within Nepal also made
the border residents in Nepal feel closer and more dependent on India than on
other areas of Nepal. For marriage and other socio-economic relations, the border
is ignored. Social and kinship ties are much more important to them than political
boundaries (Perry, 1997). Thus, the open border has economically benefited the
Kumar 171

nationals inhabiting both sides of the border. The increasing urbanization and
growth of towns in the Terai and along the border inside Nepal and India has
resulted in large inflows of goods from the Indian side into Nepal.

Open Border: Channel of Trade, Transit and Investment

India is the largest trading partner of Nepal. Bilateral trade between India and
Nepal has increased substantially since the signing of the Trade treaty in 1996 and
received further impetus after the signing of the revised Trade treaty in 2009
which has provisions that allow Nepal greater access to the Indian market. The
Government of India agreed to promote the industrial development of Nepal
through a grant on the basis of non-reciprocity of especially favourable treatment
to imports into India of industrial products manufactured in Nepal in respect of
customs duty and quantitative restrictions normally applicable to them (Embassy
of India, 2014). The main items of export from India to Nepal are petroleum prod-
ucts, vehicles and spare parts, mild-steel billets, machinery and parts, medicines,
hot and cold rolled sheets, wires, rods, coils, bars, electrical equipment, cement,
threads and chemicals. The main items of export from Nepal to India are polyester
yarn, textiles, jute goods, threads, zinc sheet, juice, cardamom, wire, MS pipe and
copper wire rods (Embassy of India, 2014).
India accounts for nearly two-thirds of Nepal’s foreign trade (66.6 per cent), 70
per cent of Nepal’s exports and almost half (46 per cent) of its foreign direct
investments (Ministry of External Affairs, 2014a). Similarly, both public and pri-
vate sectors of India have invested in Nepal. The trade statistics reveal a phenom-
enal increase in the volume of bilateral trade over the years between the two
countries. Since 1996, Nepal’s exports to India have grown more than eleven
times and bilateral trade more than seven times; the bilateral trade that was 29.8
per cent of total external trade of Nepal in the year 1995–1996 has reached 66.6
per cent in 2013–2014 (Embassy of India, 2014). The bilateral trade grew from
`17.55 billion in 1995–1996 to `332.59 billion (US$ 5.4 billion) in 2013–2014
(Embassy of India, 2014). Exports from Nepal to India increased from `2.3 billion
in 1995–1996 to `37.13 billion (US$ 605 million) in 2013–2014 and India’s
exports to Nepal increased from `15.25 billion in 1995–1996 to `295.45 billion
(US$ 4.81 billion) in 2013–2014 (Embassy of India, 2014). India and Nepal have
a Treaty of Trade and the Agreement of Cooperation to Control Unauthorized
Trade signed on 27 October 2009, with its validity of seven years along with the
provision of automatic extension for further periods of seven years at a time
(Ministry of Foreign Affairs, 2013). India has also provided a transit facility to
Nepal for third-country trade through the Treaty of Transit, which has been
renewed for a period of seven years until 5 January 2020 (Ministry of Foreign
Affairs, 2013). An Inter-Governmental Committee (IGC), headed by Commerce
Secretaries of India and Nepal to look into all issues relating to trade, transit and
cooperation to control unauthorized trade between the two countries, met in
172 International Studies 50(1&2)

Kathmandu on 21–22 December 2013 (Ministry of External Affairs, 2014a).

Some of the important agreements reached during the meeting was to allow Nepal
to bring imported vehicles ‘on their own power’ from the Kolkata port; use of
Jogbani–Biratnagar and Nautanwa–Bhairahawa customs points, in addition to
Raxaul–Birgunj, for importing bulk cargo from third countries (Ministry of
External Affairs, 2014c).
Nearly 55 per cent of the people along the Nepal–India border region conduct
border trade for private consumption, 23 per cent for business purposes and the
remaining 14 per cent for social functions (Jha, 2012). About 68 per cent of the
border inhabitants use authorized custom checkpoints for border trade, while the
remaining one-third go for trade through non-custom checkpoints (Jha, 2012).
The total value of informal imports of agricultural products from India to Nepal
through the India–Nepal border amounted to `55 billion in 2012 (Ministry of
External Affairs, 2014c).
In October 2011, Nepal and India signed the Bilateral Investment Promotion
and Protection Agreement (BIPPA) in order to promote investments from India to
Nepal in such sectors as fast-track roads, railways, tourism, education, health,
agriculture and other infrastructural projects (Jha, 2012). Nepal’s border region
could benefit if this agreement is realized. To give further momentum to India–
Nepal trade, the Agreement for the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to Taxes on Income was also signed in
Kathmandu on 27 November 2011 (Ministry of External affairs, 2014a).
Most importantly, the presence of over 361 million people in the Indian states
of Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand provide a wider
prospect for the development of trade and industries in the Nepalese border region
(Jha, 2012). The border areas of Nepal are best suited for the development of
special economic zones (SEZs), which enhance the prospect for the export of
goods from Nepal to those Indian states partly due to the proximity factor and
partly due to the similarity of taste, preferences and purchasing power (Jha, 2012).
There are three dry ports in Nepal’s border region, including in Biratnagar, Sirsiya
(Birgunj) and Bhairahawa, which facilitate trade with third countries (Jha, 2012).
Birgunj dry port is connected to India through rail and it is used for direct tran-
shipment of goods between Birgunj and Kolkata port of India to facilitate Nepal’s
trade with third countries (Jha, 2012). Recognizing the vital importance of the
transit rights of Nepal, Indian prime minister, Narendra Modi, and Nepalese prime
minister, Sushil Koirala, in their meeting held in August 2014 (Ministry of
External Affairs, 2014d), agreed to take further measures in the spirit of the Treaty
of Transit, to simplify transit procedures and facilitate expeditious movement of
traffic in transit. They directed finalizing and implementing the transhipment
modalities at the earliest (Ministry of External Affairs, 2014d).
Thus, economic exchange (legal and illegal) between the two countries is
huge. However, in economic terms, legalizing trade in essential items will help to
prevent smuggling. Open markets should come up near the border where people
can buy and sell goods without paying any duties. The Indian prime minister,
Kumar 173

Narendra Modi, in his recent visit to Nepal in August 2014, focused on the bilat-
eral relations in trade and investments (Nepal Economic Forum Take, 2014). He
even encouraged the two countries to look at the open border as a facilitator for
positive relations between them, that is, by supporting trade and investments
(Nepal Economic Forum Take, 2014). The combined border states of India and
Nepal, with their 300–400 million population, have a lot of economic potential
(Nepal Economic Forum Take, 2014). The border states in both countries should
benefit from trade and investment opportunities from their counterparts across the
border. India and Nepal need to explore opportunities to put the open border to
good use through the economic activities in the border region. The region should
maintain their connection by facilitating movement of people, goods and services
and incentivizing investments. Nepal can learn from the successful activities in
the border markets between India and Bangladesh (Nepal Economic Forum Take,
2014). The India–Nepal relationship can also be taken a step further to look at
integration at the sub-regional level. This region would integrate Nepal to the
northeastern Indian states, Bhutan, Bangladesh and even Myanmar (Nepal
Economic Forum Take, 2014). Many of these areas share open borders with each
other which may be leveraged to support trade for a large market that this sub-
region houses. Further, this region can also stand to benefit from cross-border
investments, which may be incentivized by each country/region (Nepal Economic
Forum Take, 2014).

Open Border: Facilitator of Education and Culture

Education is the sine qua non for development and prosperity of a nation and the
wellbeing of its people and, thus, has been the focus of India–Nepal cooperation
from as early as the 1960s. Cooperation efforts have addressed people’s needs
with a two-pronged approach—by providing infrastructural and technical support
to educational institutions and by bringing education and training to the individual
through scholarships, training and exchange programmes (Embassy of India,
2008). Significantly, many of the border inhabitants from Nepal cross over the
border and go to India to study in different disciplines such as arts, commerce,
science, law, medicine and engineering (Jha, 2012). Often, the Nepalese border
inhabitants go to Siliguri, Darjeeling, Madhubani, Darbhanga, Sitamarhi,
Muzaffarpur, Gorakhpur and other border towns of the neighbouring Indian states
of Bengal, Bihar and Uttar Pradesh for study. This is so because educational insti-
tutions in India are of higher quality as compared to those in Nepal (Jha, 2012).
On the other hand, some private engineering and medical colleges opened in the
border areas in Nepal admit Indian students. Interestingly, in the recent years, the
flow of the Indian students to Nepal is growing for admission in such technical
subjects as medicine and engineering (Jha, 2010). Over the years, the medical and
engineering colleges opened in the Terai such as in Nepalgunj, Birgunj, Janakpur,
Bhairahawa and Dharan have been attracting many Indian students as some of
174 International Studies 50(1&2)

these institutions provide qualitative education at affordable prices (Jha, 2010).

They find it more convenient to study in the medical and engineering colleges in
the Terai because of the proximity factor and due to their affinity to the language
and culture of the region.
In an effort to further the cause of education for Nepalese students, the govern-
ment of India has announced enhancement of Indian Technical and Economic
Cooperation Programme (ITEC) and Colombo Plan slots from 180 to 250 for
Nepalese students and experts to study in various Indian institutions (Ministry of
External Affairs, 2014a). The government of India has also offered short courses
cum exposure visits for Nepalese undergraduate students in the leading universi-
ties of India namely Banaras, Kolkata and Delhi University under ‘Nepal–Bharat
Maitri Shiksha Karyakram [Nepal–India Friendship Education Programme]’
(Ministry of External Affairs, 2014d). The Government of India also grants
approximately 3000 scholarships every year to Nepalese students, out of which
2200 scholarships are meant to study in Nepal and the balance 800 to study in India
(Embassy of India, 2014). For studying in Nepal, 2000 scholarships are awarded
to students of high school under the Mahatma Gandhi Scholarship Scheme and
200 for pursuing undergraduate courses under the Golden Jubilee Scholarship
Scheme (Embassy of India, 2014). For studying in India, the Mission conducts a
COMPEX examination each year for Nepalese students to study in B.E./B.Pharma/
B.V.Sc./B.Sc. (Dairy Tech)/B.Sc. (Ag) courses in India, which has been growing
in popularity with every passing year (Embassy of India, 2014). Ten seats for B.Sc.
(Nursing) have also been allotted in 2014. Thirty-three seats for studying from
Class VI to IX and Class XI are provided to Nepalese students in Army Public
Schools at Dhaula Kuan, Noida and Pithoragarh (Embassy of India, 2014).
The B.P. Koirala India–Nepal Foundation (BPKF), set up in 1991, also works
towards fostering educational, cultural, scientific and technical cooperation
between India and Nepal. A memorandum of understanding (MoU) on coopera-
tion between Doordarshan and Nepal Television has also been signed in 2014
(Embassy of India, 2014).

Open Border: Means and Medium of Employment

Before the green revolution in India in the 1970s, many of the agricultural labour-
ers from the bordering areas in India used to go to Nepal for seasonal employment
and got engaged in agricultural activities during the plantation and harvesting
seasons as there was a great demand for labour in Nepal (Jha, 2012). Subsequently,
because of the growing employment opportunities within India, the agricultural
labourers from India stopped going to Nepal. The green revolution in certain parts
of India such as in Punjab and Haryana attracted many of the Nepalese border
inhabitants for seasonal employment (Jha, 2012). The Nepalese border inhabit-
ants also visited Delhi, Mumbai and other parts of India to seek employment and
this trend continues even today. The Nepalese are allowed to work in government,
Kumar 175

semi-government and private sectors in India without any restriction (Jha, 2012).
Earnings by the Nepalese border inhabitants in Indian states have helped reduce
poverty at home and raise their standard of living. Remittances to Nepal from
India accounted for US$ 1634 million in 2012 (World Bank, 2013). However,
there has been a decline in the tendency of the border inhabitants to go to India
because of the growing alternative opportunities of employment in Malaysia,
Qatar, Saudi Arabia and other overseas countries (Jha, 2012). Many of the farmers
living along the border regions buy and sell agricultural and livestock products at
the border haat bazaars and other market centres in each other’s territory. This has
generated employment opportunities for many people in the border regions (Jha,
2012). The open border has provided employment to the people on both sides in
the transport and other sectors as well. Setting up of industries and export process-
ing zones in the border regions would also bring employment opportunities to the
border inhabitants residing in the border regions of both the countries.

Infrastructure-building, Economic Cooperation and an Open Border

India has been assisting towards the development of infrastructure and human
resources in Nepal, with the maiden programme of cooperation launched in 1951
(Ministry of Foreign Affairs, 2013). The Indian cooperation started in 1952 with
the construction of an airstrip at Gaucharan in Kathmandu (Ministry of Foreign
Affairs, 2013). Such assistance received from India has helped supplement the
developmental efforts of the Government of Nepal. India’s economic assistance to
Nepal has grown manifold in the past few years, particularly since the restoration
of multiparty democracy in Nepal. Now, with the dawn of a new era in Nepal’s
history, India remains steadfast in its commitment to assist Nepal’s economic
rehabilitation and political stabilisation (Bhasin, 2009, p. 1257).
An agreement was signed between the Government of India (GOI) and the
Government of Nepal (GON) on 7 November 2003 to facilitate implementation of
‘Small Development Projects Scheme (SDPS)’ in the sectors of education, health
and community development for a period of two years (Ministry of Foreign
Affairs, 2013). The agreement has been renewed regularly and the last renewal
was effective from 6 August 2011 (Ministry of Foreign Affairs, 2013). Under
SDPs, of the 425 projects undertaken, 218 have been completed (Ministry of
External Affairs, 2012).
The border infrastructure projects include the development and construction of
about 1450 km long road network in the Terai region, with a MoU to this end been
signed in 2010 (Embassy of India, 2014). The implementation of the project
would facilitate faster and convenient movement of people as well as goods and
services not only within the Terai roads but also cross-border movement to Indian
cities and towns on Indian national highways (Embassy of India, 2014). The bor-
der infrastructure projects also include development of four Integrated Check
Posts (ICPs) including that of Raxaul–Birgunj, Jogbani–Biratnagar,
176 International Studies 50(1&2)

Sunauli–Bhairahawa and Rupediya–Nepalgunj, for trade promotion and facilita-

tion (Embassy of India, 2014). The ICPs will have state-of-the-art facilities, inte-
grated customs and immigration services, etc. for the smooth cross-border
movement of goods and services as well as passenger traffic. The projects on
cross-border rail links at five locations, namely, Jalpaiguri–Kakarbhitta, Jogbani–
Biratnagar, Jaynagar–Bardibas, Nautanwa–Bhairahawa and Nepalgunj Road–
Nepalgunj are also being undertaken (Jha, 2012). Besides, there is commitment to
construct oil pipeline between Raxaul and Amlekhgunj under the joint venture
between Indian Oil Corporation and Nepal Oil Corporation (Ministry of External
Affairs, 2012). In the first phase, works have been taken up in two of the four ICPs
(grant assistance of NRs 4.32 billion for the segment falling in Nepal), six seg-
ments of Terai Roads Project (totalling 605 km entailing grant assistance of NRs
11 billion) and two of the five rail connections (grant assistance of NRs 10.4 bil-
lion) (Ministry of External Affairs, 2012).
A transport agreement was signed between India and Nepal in 2004 for the regu-
lation of passenger vehicular traffic through five border crossing points, including
Mahendranagar, Nepalgunj, Bhairahawa, Birgunj and Kakarbhitta (Jha, 2012). In
order to connect the different border districts of Nepal with Indian cities like New
Delhi, Kolkata, Patna and Varanasi, a provision was made for plying 53 buses on
the agreed routes from each side (Jha, 2012). The nationals of India and Nepal had
expected to be able to travel freely and unhindered either way on vehicles for spe-
cific purposes such as to get married, attend religious functions, go on pilgrimages
and participate in study tours (Jha, 2012). Moving in that direction, a long-awaited
bus service connecting the two capitals was started with the flagging-off of a
Delhi–Kathmandu–Delhi bus service from New Delhi by the Indian Union Minister
for Road Transport, Highways and Shipping, Nitin Gadkari; and a Kathmandu–
Delhi–Kathmandu bus service called the Pashupatinath Express by Nepali PM,
Sushil Koirala on 25 November 2014 (Times News Network, 2014). Operating the
bus service on either a daily or on alternate day basis will, indeed, go a long way in
creating and nourishing closer relationships between the two countries.
On the eve of Indian PM Narendra Modi’s visit to Nepal, in August 2014, con-
cern was expressed over the slow pace of implementation of several projects
under bilateral economic cooperation and competent officials were directed to
implement ongoing as well as future projects expeditiously (Ministry of Foreign
Affairs, 2014). The Indian PM announced a US$ 1 billion concessional Line of
Credit, to be used by Nepal, for implementing important infrastructure projects in
the area of Nepal’s priority (Embassy of India, 2014). The two prime ministers
witnessed the signing of the Exchange of Letters regarding Terms of Reference of
the Pancheshwar Development Authority (PDA) (Embassy of India, 2014). Both
sides agreed that the two governments would set up the Authority within six
months and finalize the Detailed Project Report (DPR) of the Pancheshwar
Development Project and begin implementation of the Project within one year
(Embassy of India, 2014). The first meeting of the PDA was held in Kathmandu
on 22–23 September 2014 which finalized and approved the Statute of the
Kumar 177

Authority (Embassy of India, 2014). The two countries also decided to engage
themselves in a series of infrastructure projects, including a multi-lane motorable
bridge over the Mahakali River that will allow traffic along the East-West
Highway to cross over the Mahakali (Sinha & Ghimire, 2014). It will open a key
trade and transit linkage between the far western region of Nepal with Uttar
Pradesh, Delhi and Uttarakhand (Sinha & Ghimire, 2014). The Indian side also
suggested construction of motorable bridges at Jhulaghat and Darchula border
points (Sinha & Ghimire, 2014).
Competent authorities of the two countries have also been directed to expedite
the works related to the development of cross-border transmission lines. Officials
have also been directed to expedite the signing of a memorandum of understand-
ing on a police academy (Ministry of External Affairs, 2014d). A joint press state-
ment issued at the end of Modi’s visit said that the two prime ministers underlined
the need to explore ways to enhance sub-regional cooperation, particularly in the
areas of trade, transit, connectivity and hydropower (Ministry of External Affairs,
2014d). Cross-border exchange of information, either by ground observation or
satellite imagery should be recognized to create confidence. In discussions with
civil society, India should say that it would welcome co-operation with Nepal in
future projects. It is, however, for Nepal to determine what is of advantage to it as
well as the timing (Indian Council of World Affairs, 2013).

Healthcare Services and an Open Border

India–Nepal cooperation in healthcare services has concentrated on providing
effective, affordable and immediate access to healthcare in the border regions of
both the countries. Numerous health-posts and healthcare organizations in the
border areas have also been receiving support in the form of equipment, facilities
and vehicles. Earlier, when health infrastructure in Nepal were not developed, a
large number of people from the Terai as well as from the hills used to go to hos-
pitals in India across the border (Jha, 2010). During the last few decades, Nepal
has been able to develop health facilities in the country, particularly in the Terai,
with the establishment of regional, zonal and district hospitals with modern medi-
cal facilities (Jha, 2010). This has resulted in the large-scale flow of patients from
India into these hospitals. One noteworthy development of medical facilities in
the Terai has been the opening of modern eye hospitals and ophthalmology units
in zonal and regional hospitals (Jha, 2010). These facilities have resulted in the
large-scale inflow of eye patients from the bordering states of India because of
quality and cheap services.
Often, the Nepalese border inhabitants seek health services on the Indian side
of the border in border cities such as Siliguri, Darbhanga (Laheriyasarai),
Sitamarhi and Gorakhpur (Jha, 2012). Some Indian border inhabitants also visit
the B.P. Koirala Institute of Health Sciences, Dharan to take advantage of the
health treatment facilities (Jha, 2012). Similarly, many of the patients from across
178 International Studies 50(1&2)

the border in India visit Cancer Hospital at Bharatpur, Eye Hospital at Lahan and
medical colleges in Janakpur, Chisapani and Nepalgunj for treatment (Jha, 2012).
Because of the provision of national treatment to the people of one country in the
territory of the other, the border inhabitants do not need to pay extra for health
services than what is paid by the locals. The open border, thus, has worked as a
lifeline for the people across the India–Nepal border for availing health services
both at affordable rates and at times of urgency.

Border Tourism
Being neighbours, India and Nepal can benefit from better cooperation in the
tourism sector, an area of immense potential. This is due to the fact that both the
countries offer many tourist attractions which can be complementary. Considering
the geographical proximity between India and Nepal and the incentives given to
foreign investments in Nepal, many of the Indian companies have started invest-
ing in the tourism sector in Nepal. In fact, India has already made some invest-
ment in Nepal’s tourism sector by developing a circumambulation around
Janakpur under the project—Greater Janakpur Development Project—which cov-
ers the historical and religious places of Dhanusha and Mahottari districts of the
Terai region in Nepal and of the Madhubani district of Bihar in India (Jha, 2010).
India and Nepal have signed a MoU for strengthening cooperation in the field
of tourism. The MoU was signed on 25 November 2014 during the recent visit of
the prime minister of India to Nepal. The MoU will help India in increasing for-
eign tourist arrivals from Nepal to the country. This in turn will result in economic
development and employment generation (Press Information Bureau, 2014). The
Indian PM also briefly explained the potential of Nepal’s tourism and hydro-
power. He has expressed his firm commitment to support these areas by working
together with Nepal (Pathak, 2014).
The two countries have also inked three twin-city pacts between Kathmandu–
Varanasi, Janakpur–Ayodhya and Lumbini–Bodh Gaya (Ministry of External
Affairs, 2014e). India has also offered to assist in developing holy sites such as
Janakpur, Baraha Chhetra and Lumbini, and link Lumbini, the birthplace of
Buddha, with the Buddhist circuit of India. Currently, India is the largest source
of tourists coming to Nepal with 165,815 Indian tourists visiting the country in
2012 amounting to nearly 40 per cent of tourist flows into Nepal (Ministry of
External Affairs, 2014e). Thus the tourism sector has great potential and requires
joint efforts to tap the full potential of opportunities available in it.

Security Cooperation and Border Management

To maximize the opportunities and to optimally utilize the potential that the
India–Nepal open border provides, both the countries must endeavour to
Kumar 179

minimize the threats and security concerns that arise out of the open and porous
border. This can be done through efficient and people-friendly management of
borders, thereby vitiating the several negative implications of the open border,
namely, illegal trade and trafficking, arms and drugs trade, burgeoning madrasas
and their Inter-Services Intelligence (ISI) nexus, counterfeiting of currency, etc.
India has been seeking Nepal’s cooperation in meeting the security concerns by
managing the border through several bilateral mechanisms. However, domestic
political turmoil, lack of political will and resource crunch have so far prevented
Nepal from effectively cooperating with India (Das, 2013). This situation, how-
ever, appears to be gradually changing now. Following the arrests of the two ter-
rorists, the Nepalese security agencies conducted a study and identified 18 types
of crimes that are widespread along the India–Nepal border (Das, 2013). They
have also prepared and enforced a Cross-Border Crime Control Action Plan 2013
to curb trans-border crimes (Das, 2013).
Since security related issues are primary concerns for both the countries, in
order to deal jointly with each other’s security concerns, the two countries have
established the following mechanisms: Meeting of the Home Secretaries, Nepal–
India Bilateral Consultative Group on Security Issues (NIBCGSI), Joint Working
Group on Border Management (JWG) and Border District Coordination
Committee (BDCC) (Foreign Policy Research Centre, 2014). Through these
mechanisms, the two countries can greatly improve information sharing and coor-
dination amongst the security agencies (Ministry of Foreign Affairs, 2013). In
fact, the feeling of insecurity that both the countries are grappled with can itself
be utilized as a factor towards closer coordination and mutual cooperation in secu-
rity related matters of the two countries.
The 1751 km open border, of which close to 1600 km are in the open Terai,
poses obvious security concerns (Indian Council of World Affairs, 2013). It would
be useful if India and Nepal could draw up a charter of responsibilities for the
management of the border to protect the interests of each. The two countries need
to jointly patrol the border to check trans-border criminal activities, transfer of
arms, human trafficking, etc. Like India, Nepal also faces the problem of crimi-
nals crossing the border and taking refuge in India and this issue cannot be
addressed without joint management of the border. The home ministries of the
two countries hold regular meetings (Indian Council of World Affairs, 2013). The
issue of how to devise a common approach to the management of the border can
be taken up during these meetings so that the opportunities provided by the open
border might be availed in all capacities.

Conclusion
India and Nepal have enjoyed a strong historical and long economic and political
relationship with the open border serving as the vantage point. The India–Nepal
open border is, indeed, a springboard for opportunities if both the countries
180 International Studies 50(1&2)

collectively harness the potentials and complementarities available on both sides

of the border. Having said that, what needs to be emphasized is the way they per-
ceive each other, that is to say trust deficit must be overcome by trust surplus.
Political relations must not, at any point of time, affect cultural or trade relations
and people-to-people contacts. In fact, India and Nepal must come closer for
development-oriented politics and the open border with all its advantages must be
incorporated into it while envisioning maximum benefits for both the countries.
Building infrastructure, especially roads and railways, offers a great opportunity
to the people residing in the border regions. Indian PM Modi’s idea of introducing
the highways, information ways and transmission ways (HIT) for speedy eco-
nomic development in Nepal (Pathak, 2014) must be grounded in reality. Until
and unless there is harmony in preaching and practice, making or executing poli-
cies will not suffice. However, to maximize the benefits that the open border
entails, India and Nepal must also work upon the threats emanating from the open
border itself. Various nefarious and anti-national activities are being carried out
across the India–Nepal border on a daily basis and unless such activities are con-
trolled and regulated, voices of difference regarding the open border will come up
every now and then which could be a huge setback to the potentialities provided
by the open border and the joint efforts towards them.
Any development in the border region has not only a potentiality to raise the
income and standard of living of the border inhabitants but also of the people of
the two countries as a whole. Hence, priority should be accorded by the planners
and policy makers of the two countries to developing the border areas by exploit-
ing the resources. Undoubtedly, India and Nepal have been ‘friends in need and
partners in progress’ and with Nepal trying to achieve political stability, this part-
nership must be sustained and strengthened. Having said this, India and Nepal
must identify key areas of bilateral convergence. Both sides need to strengthen
coordination and consultation in matters of mutual interests and find ways to solv-
ing conflicts amicably. Such convergences through concrete efforts would go a
long way in fulfilling Nepal’s vision of graduating from the status of least devel-
oped country in near future. They need to cash the opportunities of co-existence
through mutual respect and trust and through unrelenting commitment towards
the nation and its people.
The open border is the bedrock of a close India–Nepal relationship and both
the countries must, through multi-faceted socio-economic interactions and peo-
ple-to-people ties, endeavour towards maintaining its sanctity and purpose. The
India–Nepal border is the core area where both the countries can work together to
maximize their benefits. Moreover, as economic and physical interconnectedness
increase globally, it will be only natural for India and Nepal to reinforce and
expand the bridges that connect their people in all realms. Better cross-border
connectivity and optimum utilization of opportunities holds the key to future
prosperity of the peoples in the two countries. Infrastructure projects in the border
areas should work towards redefining connectivity for the people on both sides,
thereby enabling them to engage more closely in pursuit of progress, sharing the
Kumar 181

fruits of development and strengthening the traditional bonds of friendship that

span across the border. The focus in this region, therefore, should be on the 3Cs,
connectivity, communication and communities (Nepal Economic Forum Take,
2014). This focus, in the coming years, will work wonders for both the countries
and their special relationship with border being the centre stage. India and Nepal
need to find a delicate balance among the needs of border security, the develop-
ment of cross-border cooperation and the interests of the central governments and
border regions so that border regions could be developed as locomotives for eco-
nomic growth. The lifeline of the border inhabitants of India and Nepal, that is,
the open border, must, therefore, be sustained, managed and nurtured.

Acknowledgement
A version of this article was presented at the Annual International Studies Convention 2013,
organised by the School of International Studies, Jawaharlal Nehru University, New Delhi
during 10–12 December 2013 with generous support from Public Diplomacy Division,
Ministry of External Affairs, Government of India; Indian Council of Social Science
Research; University of Calcutta, Kolkata; Central University of Gujarat, Gandhinagar;
University of Pune; University of Hyderabad; Pondicherry University, Puducherry; Panjab
University, Chandigarh and Institute for Defence Studies and Analyses, New Delhi.

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