Bilateral Oversight

• A Joint Oversight Mechanism was established in 2016 following the visit of Nepal Prime Minister Pushpa Kamal Dahal to India.
•  Co-chaired by Nepal’s Foreign Secretary and India’s Ambassador to Nepal.
   The mechanism meets every two months to review progress and resolve issues.

Flagship Projects

• B.P. Koirala Institute of Health Sciences (Dharan)
•  Emergency Trauma Centre at Bir Hospital (Kathmandu)
•  Manmohan Memorial Polytechnic (Biratnagar)

These projects have been successfully completed and are operational, contributing to Nepal’s health and education sectors.

Integrated Check posts (ICPs)

• Raxaul-Birganj (Operational since 2018)
•  Sunauli-Bhairahawa (Under construction)
•  Jogbani-Biratnagar (Under construction)
•  Nepalganj Road-Nepalgunj (In progress)

These ICPs facilitate improved trade and movement between India and Nepal.

Railway Infrastructure Projects

• Jayanagar-Janakpur-Bardibas-Bijalpura
•  Jogbani-Biratnagar sector

Projects are in progress, aiming to improve connectivity along the border.

Development Loans & Grants

• US$ 250 million grant for post-earthquake reconstruction.
•  US$ 750 million soft loan for development projects.
•  US$ 1 billion line of credit for projects selected by Nepal (announced in 2014).

 Previous lines of credit include US$ 100 million and US$ 250 million.

Water Resources Cooperation

Both countries set up mechanisms such as:

• Joint Ministerial Commission for Water Resources (JMCWR
•  Joint Committee on Water Resources (JCWR)
•  Joint Standing Technical Committee (JSTC)
•  Joint Committee on Inundation and Flood Management (JCIFM)

These bodies address water-sharing, flood management, and water-induced challenges.

Hydropower Projects

• Power Trade Agreement (2014) allows electricity trade without restrictions.
• Development of mega hydropower projects: Upper Karnali Hydroelectric Project and Arun III Hydroelectric Project
• India has supported private and public power developments in Nepal, mainly  hydropower.

Economy and Trade

• India is Nepal’s largest trading partner.
•  India provides transit facilities for Nepal’s third-country trade.
• Treaty of Trade, Treaty of Transit, and Agreement to Control Unauthorized Trade have been signed.
• Bilateral trade volume has increased significantly, though Nepal faces a growing trade deficit.

Military Relations

 India assists Nepal’s military modernization by providing equipment and training.
 India and Nepal conduct joint military exercises like Exercise Surya Kiran.
 Nepalese Gorkhas are recruited in the Indian Army, strengthening military ties.

Cultural & Community Ties

• Nepalese citizens in India enjoy rights similar to Indian citizens.
   Sister-city agreements include:

1.  Kathmandu-Varanasi
2.  Lumbini-Bodhgaya
3.  Janakpur-Ayodhya

These agreements reinforce cultural and community connections.

• India’s aid has been crucial for Nepal’s recovery post-2015 earthquakes

Boundary Management

• Joint Working Group on Border Management (JWG) and Border District Coordination Committees (BDCCs) for border security.
• Nepal-India Joint Technical Committee (1981) and Boundary Working Group (BWG, 2014) responsible for mapping and maintaining boundary pillars.

Multilateral and Regional Fora

• Active cooperation in United Nations, Non-aligned Movement (NAM), SAARC, BIMSTEC, and BBIN.
• Focus on enhancing economic integration and regional cooperation through these frameworks.