The India-Nepal Treaty of Peace and Friendship was signed by the last Rana Prime Minister of Nepal, Mohan Shamsher Jang Bahadur Rana, and the Indian Ambassador to Nepal, Chandreshwor Narayan Singh on 31 July 1950 and came into force the same day. It has ten articles. The treaty provides for everlasting peace and friendship between the two countries and the two governments agree mutually to acknowledge and respect the complete sovereignty, territorial integrity and independence of each other. As per Articles 6 and 7, the two governments agree to grant, on a 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, participation in trade and commerce, movement and other privileges of a similar nature. This enables Nepalese and Indian citizens to move freely across the border without passport or visa, live and work in either country and own property or conduct trade or business in either country. There are a large number of Indians living, owning property and working or doing business in Nepal as a beneficial aspect of the treaty for India. Reciprocally, many Nepalese live, own property and conduct business freely in India. For centuries, Nepal remained in self-imposed isolation. After the 1860 treaty with the East India Company, Prime Minister Jung Bahadur Rana of Nepal allowed Indians to purchase and sell land in Nepal's Terai. After the ascent of Mt. Everest by Edmund Hillary and Tenzing Norgay, Nepal completely lifted its ban on foreigners. The King of Nepal enacted the Citizenship Act of 1952 that allowed Indians to emigrate to Nepal and acquire Nepalese citizenship. But as more and more Indian immigrants from Bihar started acquiring Nepalese citizenship, most Nepalese became resentful of this provision.
Text of the Treaty
Background
The Himalaya Nation of Nepal borders northern India in the south, east and west. During British rule in India, Nepal's ties with the British government were governed by the 1816 Treaty of Sugauli that was replaced by the 1923 "Treaty of perpetual peace and friendship". After the independence of India in 1947, the two nations sought to forge close strategic, commercial and cultural relations. The rise of Communist China in 1949 and the subsequent invasion of Tibet heightened security concerns in both India and Nepal. India had maintained good relations with Tibet, but the Rana rulers of Nepal feared that China would support the Communist Party of Nepal and sponsor a communist revolution that would overthrow their autocratic regime. With heightening concerns over the security threat to India presented by Communist China, which was seen as seeking to project power and influence over Nepal, Sikkim and Bhutan and China's border disputes with India, the latter sought to strengthen its "Himalayan frontier" by forging an alliance on defence and foreign affairs with the Rana rulers of Nepal.
Criticism
This treaty is called unequal by most Nepalese since Nepalese law does not permit an open border, and Indians, by law, should not be able to buy lands and properties in Nepal or carry out businesses in their names. They claim that the 1950 treaty was signed by undemocratic rulers of Nepal and can be scrapped by a one-year notice. The treaty has been unpopular especially among Pahari segments of Nepal, who often regard it as a breach of its sovereignty. Also, agreements were manipulated in the favour of antidemocratic autocratic rule of Nepal, where the power of the people is fragmented.
Although initially supported enthusiastically by both the Rana rulers and Indian establishment, the treaty became the subject of increased resentment in Nepal, which saw it as an encroachment of its sovereignty and an unwelcome extension of Indian influence. After an abortive attempt in 1952 of the Communist Party of Nepal to overthrow the autocratic Rana rule with Chinese backing, India and the Rana regime stepped up military and intelligence cooperation under treaty provisions, and India sent a military mission to Nepal which was regarded by leftist Nepalese as an undue extension of Indian influence in Nepal. In the late 1950s and the 1960s, after the advent of democracy in Nepal, it and China forged better relations, and relations with India deteriorated. Nepal forced the Indian military mission to leave, and both nations began ignoring the treaty provisions. It was temporarily brought closer to India after the Sino-Indian War in 1962, but Nepal resented the growth of India's regional power in the 1970s. The extensive Indian trade and economic influence was also resented by some in Nepal. In 1975 after the annexation of Sikkim by India, Nepal began openly lobbying for renegotiation of the treaty and proposed itself as a Zone of Peace between India and China, where military competition would be off-limits. India refused to endorse the proposal.
Proposed scrapping
Upon forming a coalition government after the 2008 Nepalese Constituent Assembly election, the leader of the Communist Party of Nepal Pushpa Kamal Dahal said on 24 April 2008 that the 1950 treaty would be scrapped and a new pact would be negotiated with India. However, he did not pursue the matter and had to resign as prime minister within nine months. However, in 2014, both India and Nepal agreed to "review" and "adjust" the peace treaty to reflect the current realities.
People of Terai region of Nepal and Indian state of Bihar formed a group Nepal India Open Border Dialogue Group. Initially the group formed to understand the issue related to flooding in Nepal India Border later the group started advocating for open border and organised several seminar.
