India-Nepal
Relations
Towards a Partnership in the New Millennium
-
SHYAM SARAN
Ambassador of India in Nepal
I wish to thank the Nepal Council of World Affairs and in particular,
it’s President, Ambassador Jha, for extending to me this privilege
of sharing my thoughts on India-Nepal relations, with such a distinguished
and discerning audience. I must beg your indulgence since I am still
a relative newcomer to the complex world of India-Nepal relations. I
do not mind admitting to you that I am still in the process of educating
myself in the many facets of our wide-ranging relations, each of which
has its own historical background and particular nuances. What I will
attempt to do is to present a broad-brush vision of where we would like
to see our relations headed in the new millennium.
India-Nepal relations are anchored in a shared cultural legacy whose
beginnings are lost in the mist of time. There is a familiarity amongst
our peoples that is born out of a long history of interaction, an interaction
which continues with reinforced intensity in contemporary times. This
legacy is an invaluable asset in fostering our bilateral relations,
but like any relationship, it needs to be nurtured. It must never be
taken for granted. We must never assume that because we have this shared
history of political, commercial, cultural and religious interaction,
good relations will follow in the natural course of things. Such complacency
may lead us to ignore or minimize the consequences of divergent perceptions
and differences of opinion. There should be an in-built early warning
mechanism in the management of our relations which enables us to deal
expeditiously with differences as they arise. We must prevent such differences
from gathering a cumulative negative charge through neglect until they
mask even the most positive understandings of our relations.
When we speak of management of our relations, we cannot limit ourselves
to government interaction alone. Governments are part of the story,
not the whole story, and not necessarily even the most important part
of the story. India-Nepal relations are marked by a breathtaking range
and intensity of interaction, in which virtually all sections of our
society take part. In our contemporary information age, public perceptions
of each other influence government policies. These public perceptions
are in turn created by various opinion leaders, such a media, academic
institutions, non-governmental organizations and what one may broadly
call the civil society in a country. Even if there is frequent contact
and interaction between our government, we can neglect civil society
dialogue only at our peril, because in today’s would there is
much more to relations between countries than mere government to government
relations. I n the vision that we have for our relations in the new
millennium, we will seek to broaden our dialogue so that not only our
political leaders and bureaucrats talk to each other, but so do our
scholars, journalists, artists, scientists, youth, women and the many
non-governmental organizations and social entities. Misunderstanding
should be dispelled not only between governments but also only between
respective societies and opinion leaders goodwill to be reinforced,
not merely between our respective political leadership but also between
our civil society leaders.
The extraordinary thing about India and Nepal is the degree of complementarities
that exist between our countries and which awaits being explored to
mutual advantage. Nepal has rich water resources. Judicious projects
for the utilization of these water resources could meet India’s
growing needs of power and earn revenues for Nepal. Joint projects could
address the problems of flooding or drought and bring irrigation to
agricultural lands on both sides of the border. This could be a win-win
situation for both countries, instead of becoming a source of mutual
recrimination and mistrust.
Take the tourist sectors, which for Nepal, is a major source of income.
Nepal is blessed with extraordinary natural beauty, a rich and unique
cultural heritage and a relatively well-developed tourism infrastructure
in many respects. It also has places of pilgrimage that attract both
Hindus and Buddhists. Currently, there are nearly 5 million India tourists
who are visiting foreign countries each year. Nepal has the potential
to attract a sizeable segment of this outbound traffic with only a modest
investment in promotion. It is significant that during 2002, it was
only the tourist inflow from India which registered an increase while
visitors to Nepal from other regions declined significantly.
India can also be a major source of investment for Nepal. Even though
India is a capital importing country, its exports of capital are nearing
a billion dollars annually. In fact, 50% of all foreign investment in
Nepal is already from India. Given the fact that Nepal has virtually
duty free access to huge and growing Indian market, investment in Nepal
need not be limited to Nepal’s relatively smaller domestic market.
Nepal can capitalize on its proximity and privileged access to the Indian
market to attract foreign investment including from India. Several well-known
Indian companies would be prepared to set production bases in Nepal,
not only to serve Nepal domestic market, but also Indian states bordering
Nepal, such as West Bengal, UP, Uttaranchal and Himachal Pradesh.
India, like Nepal, is a developing country. However, there are areas
where India has certain modest achievements to its credit. Consider,
for instance, India’s IT industry, which is now exporting over
US$7 billion in software services. IT penetration in Nepal is still
limited and the market is likely to remain small in the foreseeable
future. However, Nepal’s software industry could ride piggyback
on the Indian IT industry through joint ventures, outsourcing from Indian
companies and doing sub-contracting work for Indian software providers.
Since a sizeable number of Nepali nationals have received specialized
IT training in Indian institutions, they would be able to mesh very
easily with their Indian counterparts. In time, this would lead to the
development of a significant IT industry in Nepal, which is a pre-requisite
to the creation of a modern economy and society.
There are several other areas of high technology in India, which Nepal
could profitably make use of for its own development. This includes
Space Sciences and Biotechnology among others. India is today the cheapest
source of high-resolution remote sensing applications, using its IRS
Satellites. Nepal could gain immensely from use of such technology to
monitor its environmental situations, study changing weather patterns,
undertake accurate crop surveys and locate mineral resources. Or take
the bio-tech sectors – Nepal has one of the richest reserves of
medicinal herbs and plants. This exceedingly rich and diverse pool of
genetic resources needs to be preserved and at the same time carefully
and judiciously utilized for commercial applications. India has made
significant advances in this field. In fact, India is one of the few
countries which has a separate Department of Bio-technology, dedicated
to developing our expertise in this frontier field of science. India
is ready to share its technology with Nepal.
India and Nepal share a 1751 Km long open border. I consider this an
asset, despite calls heard on both sides of this border that it needs
to be closed or at least regulated. I do not believe that given the
nature of the terrain and the family and kinship ties that extend across
the border, it will be possible to seal it in any effective manner.
In fact, if we pursued greater economy integration across the border,
this would benefit both countries, particularly both our bordering states
and districts. For example, as I pointed out, Indian companies are interested
in setting up production bases in the border areas, to serve not only
Nepal but Indian Border States as well. We could set up institutions
of higher learning, hospitals and other facilities which could serve
people on both sides of the border. In many cases, the economic viability
of such a facility depends upon the density of its use. Access to clients
on both sides of the border would precisely meet this requirement. I
think that while a closed border may not be in the interest of the people
of the two countries, the problems that face our two countries require
an effective mechanism to monitor movement across the border.
What we would like to see in the new millennium is a new economic dynamism
in our border areas, with greater economic interaction between India’s
northern states and southern Nepal. We need to promote such interaction
through better infrastructure linkages, such as link roads as well as
railways and communication links..
Sometime back I said that our Nepalese friends should not look upon
their country as India-locked but India-open. It is important to avoid
a seize mentality. On India’s part, we should refrain from looking
at the India-Nepal border only as a source of danger, as a kind of a
soft-under-belly, which makes India vulnerable. Similarly, Nepal needs
to look at India as a looming opportunity, not a looming threat of domination.
The dangers of an open border can be addressed effectively it there
is sensitivity to each other’s security concerns, and arising
out of that, a willingness to cooperate on addressing those concerns.
There needs to be far greater emphasis on the opportunities that present
themselves in our unique relationship, including the mutual benefit
to be derived from cross-border projects.
Mr. President, distinguished guests, what we could like to see in the
new millennium is a mutually rewarding and dynamic partnership between
our two friendly neighboring countries. This is a partnership which
must encompass all sections of our respective societies, not merely
governments. We need to broader the scope of our bilateral dialogue
and create an environment in which the complementarities in our relations
can be exploited to mutual benefits, which sometimes prevents this from
being realized. We must deal with sources of mistrust seriously and
expeditiously, but we must not focus only on the negative aspects, ignoring
the many positive elements that also constitute the totality of our
relations. If we handle our relations in this balanced and forward-looking
manner, the new millennium could certainly become the golden age of
India-Nepal friendship.
Source:
Vividh Bharat (Ambassador’s opening remarks at the talk program
organized by Nepal Council of World Affairs on January 10, 2003)
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