To understand better first know Nepal's new map claiming Kalapani, Lipiyadhura, and Lipulekh as its own territories.
In 1950, India and Nepal signed a Treaty of Friendship and Peace. The treaty extends mutual peace, friendship, and sovereignty to each other, while it accepts non-interference in each other's territory. As per the treaty, Nepal would consult India whenever they undertake any arms imports from any nation other than India. The national treatment clause also extends to industrial and economic development.
Basically, under Indo-Nepal national treatment, their citizens are empowered to the same privileges for the property, trade, and residence, and movement in both countries. That means a Nepali citizen can buy property in India while an Indian citizen can do so in Nepal if he/she so chooses. Also, an Indian citizen can reside anywhere in Nepal, and a Nepali citizen to enjoys the right to residence in India under national treatment.
Another important point of the treaty is open borders. As per this point, Indian citizens can move to Nepal without the need for a visa and vice versa. As per Article X in the treaty, either party can ask for a change in the treaty whenever demanded.
Nepal's issue with FriendshipTreaty
This treaty favors Nepal more than India, but Nepal still has certain issues with it. Nepal initially plained that when the treaty was concluded in 1950, India concluded the treaty with a Rana Nepal alleges that India signed the treaty with the Rana who had become unpopular. Certain sections in Nepal also alleged that the way the treaty was signed signified that India considered Nepal a small state and not an equal state. It was further alleged that the conclusion of the treaty by the Indian ambassador and Nehru himself not coming to sign the treaty signified an unequal status of a country.
As mentioned earlier, in 1994, the UML had successfully generated an anti-India plank in the election. Since then, raising anti-India slogans and alleging that the Indo-Nepal Treaty of 1950 favors India more than Nepal has become a norm for gaining political mileage. Many times, Nepali political parties have demanded a change in the treaty. Under Article X of the treaty, Nepal can ask India to bring change and India has to establish a mechanism for the same.
Whenever Nepal has asked for a change in the treaty, India has accepted the Nepali request, but the absence of consensus in Nepal on issues that need revision prevents any meaningful engagement about the issue. This demand for revision of the treaty was recently also raised during Indian the PM's visit to Nepal in 2014.
Border Related Issues between India and Nepal
The entire border is demarcated by border pillars but at various stretches, due to natural calamities and lack of maintenance, the border pillars have gone missing, necessitating a proper demarcation of the border to ensure that an absence of the same does not lead to an escalation of tensions. In 1981, India and Nepal established a Joint Technical level Boundary Committee to survey the boundary again. The Committee in 2007 submitted 182 strip maps that were to be ratified by both nations.
The ratification of me 182 strip maps is still pending as of 2017. In July 2014, both countries established a Boundary Working Woup (BWG) to resolve the Kalapani and Susta issues. The main issue related to border management between India and Nepal is that the borders have been demarcated on the basis of a flowing river. The problem is that the rivers shift their courses over a period of time. This impacts the border that gets ected due to shifting rivers. No doubt, the boundary of the river is also based on a principled fixed border but if the river shifts, it results in the creation of adverse possession. The shifting of the river led to the destruction of boundary pillars.
The BWG will use GPS observations and generate data that will be used by the foreign secretaries of both nations to solve pending border issues, The BWC also to look into the Kalapani issue. The origin of the Kalapani issue goes back to the Treaty of Sagauli per the treaty, Kali River is designated as the western part of the boundary. In between the two streams of the Kali River lies Kalapani. The issue arises as the segments to the West of Kalapani of Kali River are claimed by Nepal, while India claims segments to the East of Kalapani of Kali River area, thereby making a claim to the entire Kalapani. In the 1962 Indo-China war, Kalapani was occupied by Indian forces and India considers it strategically important.
The basic reason for the Chinese presence in Nepal is to ensure that Nepalese territory is not used by Tibet tried to build an economy for the breeding of discontent. In the initial years, from the 1950s to the 1980s, the Chinese tried to build an eco presence in Nepal, which got enhanced tremendously post the 1990s. China has increased participation in Nepal on the economic front. In the last decade, Chinese engagement with Nepal has got strengthened the soft policy level.
For that matter, China has opened up many Mandarin language training schools in the Terai region. Chinese are providing Mandarin language training to Madhesis to ensure that in the near future the Madhesis emerge as potential laborers to work in the ever-expanding Chinese economy. China has made inroads into Nepal in infrastructure, education, and health sectors. India feels that the Chinese inroads I Nepal are necessarily to counterbalance the Indian influence in Nepal. Certain sections in the Indian security establishment feel that Maoism in Nepal has been encouraged by China and they have potential links with the Indian Naxalite movement, though this is not an officially accepted view by the Indian government today,