India and Nepal have signed several major pacts to strengthen their relationship. The Indian side has agreed to import up to 10,000 megawatts of power from Nepal in the next decade. The two countries also signed a treaty of transit that will allow Nepal access to India’s inland waterways for the first time, which is expected to contribute significantly to trade and investment linkages.
The two leaders also discussed the boundary dispute and vowed to resolve it under the spirit of friendship. They firmed up several new initiatives to expand cooperation in areas of hydro-electric power, petroleum infrastructure, railway connectivity, cross-border payment systems, and trade and investment.
Prime Minister Modi said that India will continue to strive to take the relationship with Nepal to new heights. The Nepalese Prime Minister urged Modi to resolve the boundary matter through established diplomatic mechanisms.
The boundary dispute arose after Nepal published a new political map in 2020 that showed three Indian territories as part of Nepal. India reacted strongly, calling it a unilateral act and cautioning Nepal that such territorial claims would not be acceptable to India.