The Aryavarth Express
Agency (New Delhi): Nepal has taken a bold and provocative step by introducing new Rs 100 banknotes that feature a map including the Indian territories of Lipulekh, Limpiyadhura, and Kalapani. This move has not only strained the already tense relations between the two countries but has also highlighted China’s growing influence in Nepal. However, what is even more concerning is the weak and inadequate response from India’s External Affairs Minister, Dr. S. Jaishankar, which is a continuation of a series of foreign policy miscalculations.
The decision to redesign the Rs 100 banknotes was approved by the Nepalese government, led by Prime Minister Pushpakamal Dahal ‘Prachanda’, during cabinet meetings held on April 25 and May 2. The inclusion of the disputed territories on the currency notes is a clear assertion of Nepal’s stance, which considers these areas an integral part of the country. India, on the other hand, has maintained that Nepal’s claims are “untenable” and “artificial enlargements.”
The strategic importance of the disputed regions, especially the Kalapani area, cannot be overstated. Located at the tri-junction between India, China, and Nepal, the handling of this border dispute can have far-reaching consequences on the relations between the three nations. Nepal’s position as a “buffer state” between the two Asian powers further complicates the situation.
Tensions between India and Nepal escalated in 2020 when India inaugurated an 80km road passing through the disputed Lipulekh pass to facilitate pilgrims visiting Kailash-Mansarovar in Tibet. Nepal strongly protested against the agreement between India and China to develop the region for trade and transit, claiming it violated its territorial integrity.
The strained relations between India and Nepal can be traced back to the unofficial economic blockade imposed by India in 2015. This action pushed Nepal closer to China, which has since stepped in to fill the void left by India, offering investments, aid, and loans. China sees Nepal as a crucial partner in its Belt and Road Initiative (BRI) and has proposed ambitious projects like the Trans-Himalayan Multi-Dimensional Connectivity Network.
However, some of these Chinese-backed projects have encountered delays and obstacles. The Pokhara International Airport, built by China, remains inoperative due to India’s refusal to allow flights to fly overhead. Furthermore, India’s new recruitment scheme for its Gurkha regiments has excluded Nepalese Gurkhas, damaging the long-standing ties between the two countries.
Dr. S. Jaishankar’s response to Nepal’s announcement of the new banknotes has been disappointingly weak. He merely stated that this “unilateral decision” would not alter the ground reality or the ongoing boundary discussions between the two countries. This feeble response is a continuation of Jaishankar’s series of foreign policy missteps and miscalculations.
As India prepares for its national elections, the incoming government will have to confront the challenges of repairing ties with its neighbors and countries with shared history. The border dispute with Nepal and China’s increasing influence in the region will demand skillful diplomacy and a concerted effort to rebuild trust and cooperation.
