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India-Nepal Joint Commission Meeting

Why is it in the news?

  • The 7th India-Nepal Joint Commission meeting took place in Kathmandu, resulting in significant agreements.

Key Agreements

  • Both nations agreed to collaborate on the development of renewable energy sources.
  • India and Nepal outlined plans to export 10,000 MW of electricity over the next decade.
  • The Indian Space Research Organisation (ISRO) will launch Nepal’s Munal satellite using the Polar Satellite Launch Vehicle (PSLV).


A Brief Overview on India-Nepal Relations

  • The India-Nepal Treaty of Peace and Friendship, established in 1950, serves as the bedrock for the relations between the two countries.
  • Nepal holds a strategic position as a priority partner of India under its ‘Neighbourhood First’
  • India stands as the largest trading partner of Nepal, with bilateral trade exceeding US$ 7 billion in FY 2019-20.
  • Bilateral defence collaboration includes the recruitment of Nepalese soldiers into the Gorkha regiments of the Indian Army.
  • Joint military exercises, exemplified by Surya Kiran, strengthen military ties.
  • A longstanding Power Exchange Agreement, in effect since 1971, addresses power requirements in border areas.
  • Notable hydropower cooperation projects, such as the Mahakali Treaty (6,480 MW) and the Upper Karnali Project (900 MW), enhance energy collaboration.
  • The construction of South Asia’s first cross-border petroleum products pipeline, connecting Motihari in India to Amlekhgunj in Nepal, is undertaken and funded by the Indian Oil Corporation Ltd.

Both nations actively engage in regional and multilateral forums:

  • Participation in BBIN (Bangladesh, Bhutan, India, and Nepal) initiatives.
  • Contribution to BIMSTEC (Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation) efforts, enhancing regional cooperation.

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