Ranjit Rae served as the Indian Ambassador to Nepal from 2013 to 2017. In this period, Nepal witnessed some historic developments including drafting of a new constitution in 2015. In the aftermath, India imposed an economic blockade on Nepal when Rae was the ambassador.
Recently, Rae has published a new book titled ‘Kathmandu Dilemma: Resetting India-Nepal ties’ that examines India’s perspectives on these developments, in the context of the civilizational and economic underpinnings of the India-Nepal relationship, as well as issues that continue to prevent this relationship from realizing its true potential. Kamal Dev Bhattarai talked to Rae over the phone.
Over the past few years Nepal has been pressing for the review of the 1950 Treaty on Peace and Friendship but India remains mum. Why?
Clearly, the 1950 treaty has become an irritant. Nepal is unhappy and wants a review of the treaty. For any treaty to be meaningful and effective, it must benefit both sides. As you are aware, the treaty is a fine balance between security and economy, or national interest treatment of the two countries. At the high political level, India has conveyed its readiness to review the treaty and consider any proposal Nepal presents. I am confident that two foreign secretaries can work out a revised text based on the changed global context, taking into account the interests and concerns of both the countries.
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How do you view China’s growing influence in Nepal?
As China’s strength and riches have increased, so has its influence and outreach all over the world, as well as in South Asia and Nepal. Following the Nepal visit of President Xi in November 2019, bilateral relationship between the two countries has been elevated to the strategic level, and not only between the two governments but also at party-to-party level. There has been a comprehensive upgradation of bilateral ties. Nepal today is a signatory to Chinese Belt and Road Initiatives, and it has reservations on the US sponsored Indo-Pacific Strategy, which it feels is aimed against China.
These developments are taking place in a troubled global and regional context where we see a growing contestation for influence between the United States and China. The relationship between India and China is also at low ebb. The fact that Nepal has been unable to endorse the US $500 million grant MCC project is another pointer to China’s growing influence. And a new China-led SAARC subgroup has set up a Poverty Alleviation Center. Clearly, these developments are significant and need to be monitored.
How do you see the future of Nepal-India ties?
There is no option but to strengthen India-Nepal ties. Our futures are intertwined; we must build upon solid civilizational bonds by stepping up our economic engagement through enhanced connectivity and stronger partnership. We should envision BBIN as an open interconnected and interdependent economic space where each country is able to exploit its comparative advantage to the fullest. Cooperation in hydropower is the surest way to strengthen the engagement. Recent decisions enabling Nepal to send its electricity to the Indian market as well as Bangladesh via India would go a long way towards meeting the objective.
'Kathmandu Dilemma: Resetting India-Nepal ties' a book by Ranjit Rae
Let’s turn to your book. What motivated you to write ‘Kathmandu Dilemma’?
A couple of factors. First, I felt there were a lot of misperceptions and lack of awareness of each other and of the nuanced, multi-layer relationship between our two countries. I wanted to bring greater clarity and frankness in our mutual understanding. Second, I wanted to explain to the general public the logic of Indian policy towards Nepal, particularly India’s role in certain pivotal moments in Nepal’s contemporary political history. Third, I wanted to provide what I feel should be a template for our relationship for the future in a world that looks very different.
What are some of the important issues you deal with in your book?
The book is broadly divided into two sections. In the first part, I discuss the nature of Nepali nationalism. I see it in some detail and this is an undercurrent throughout the book. Thereafter, I examine India’s understanding, approach and role in two seminal developments of Nepali history, namely the peace process that ended the Maoist insurgency, and the constitution drafting process and its aftermath.
In the second part of the book, I examine some key irritants such as the 1950 treaty and boundary issues. In addition, I look at main drivers of relationship, the civilizational linkages, and the economic dimension including humanitarian assistance and disaster relief during the earthquake. I also discuss the role of other countries, notably China in Nepal. I conclude with a chapter on the way forward.
