From Blockade to Demonetisation: India–Nepal Relations
From Blockade to Demonetisation: India–Nepal Relations

Summary/Abstract: India–Nepal relations go beyond a conventional neighbouring state relationship. Bothcountries share linguistic, ethnic, and religious beliefs. The border movementsbetween these countries are less regulated and people have free access to bothsides of the market. Despite free and open borders, and cultural, linguistic, andreligious similarities, relations between India and Nepal have generally beenstrained. Since 2015, the relationship between India and Nepal has reached a newlow. First, there was a blockade initiated by the Madhesi population of Nepal atthe site of the border between the two countries, and then the Indian government’sdemonetisation policy came, which has severely affected Nepal’s economy. After2015, relations between these two countries have changed dramatically. Nepal hasaltered its long-standing trade relations with India and has gone about exploringoptions with China instead.This article discusses in detail India’s view on its neighbouring countriesand the South Asian border relations. It also explores how Indian academic anddiplomatic circles view the India–Nepal relationship in the light of China’s aggressivepolicy push in the South Asian region.

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