Indian Prime Minister Narendra Modi's visit to Nepal: The outcomes

Modi’s visit made an important mark in Nepal’s history. He has spoken and done a lot to warm and win Nepali hearts to take the relations to a new height. In the speech, considered by the speech-maker as respect to 1.2 billion Indians, Modi encouraged Nepal to become a powerful nation by developing its huge potentials in hydropower, tourism, herbal medicines, and so on.

During the delegation-level talks held in Kathmandu on Sunday, Modi said India will not interfere with Nepal's internal affairs and all issues will be sorted out mutually and in a friendly way.

The Indian PM even said Nepal can become a developed nation by selling power to India that wants to buy, instead of getting it for free.

India’s Prime Minister Narendra Modi said New Delhi is ready to accommodate Nepal’s concerns about the Treaty of Peace and Friendship and resolve boundary issues, including in Susta and Kalapani. “The prime minister of India stated that India was ready to resolve boundary issues, take measures to narrow down Nepal’s trade deficit and accommodate Nepal’s concerns on the Treaty of Peace and Friendship of 1950,”

The Indian PM won thunderous applause on Sunday from Nepali lawmakers when he mentioned that Buddha was born in Nepal's Lumbini while addressing the Constitution Assembly/Parliament, as the first foreign head of government since the restoration of parliamentary democracy in 1990. This is a sensitive issue rousing deep passion between the two counties because some quarters of India claimed that Buddha was born in India. 

Overall, Modi's visit ended in a happy note.

Moving to pure business here are the mutual agreement done by Nepal and India during his visit.

1) The two sides have also reached an understanding to have finalised a deal on Power Trade Agreement (PTA) and Upper Karnali Project Development Agreement within 45 days

2) During one-on-one meeting with Prime Minister Sushil Koirala and delegation-level talks led by the two premiers, Modi promised to take effective measures to reduce Nepal’s alarming trade-gap of some 400 billion rupees with India. Modi announced a soft credit line of one billion US dollars to be used in infrastructure development and energy projects as identified by the Nepali government.

3) In delegation-level talks, the two sides signed and exchanged letters of Terms of Reference for Pancheshwor Development Authority. The JC had agreed to revise the earlier ToR so as to immediately commence work on the 6,500 MW multipurpose project in Nepal.


4) Modi directed authorities concerned to expedite all the ongoing projects for their timely completion and explore new areas of cooperation for mutual benefit.  Modi expressed his interest to explore opportunity in Nepal’s adventure/religious tourism, herbal medicines and organic farming as he believed there is no country like Nepal in the whole world where these activites will be viable.

During his trip, Modi mentioned a few times that he will come back to Kathmandu to participate in the 18th SAARC (South Asian Association for Regional Cooperation) Summit this November, hoping to see tangible progress on PTA and PDA before it.