India and Nepal share a close cultural relationship. Even mythological stores including the Ramayana show signs of Indo-Nepali relationships. Religion is a very important aspect of this link. Between Nepal and India, there have been frequent exchanges of ideas, personalities and groups of people representing the areas of the art, culture, music, literature and sports.
Nepal’s diverse cultural heritage of dance and music- both classical and folk-, theatre, fine arts, and sports have been interacting with their counterparts in India, and have been contributing to create friendly connections and generate a better understanding and appreciation of each other’s traditions. Every piece of art and culture has become a way of life, and is expressed in carvings, paintings, architecture, sculptures and performing arts like music, cinema and dance.
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Every form of the arts in these countries is heavily influenced by the respective religious traditions and mythologies, and has helped shape religious traditions and values in Nepal and India. Trade with India: Indo-Nepali trade has been functioning for over decades. During the 1950s the trade was booming but over the years, sales gradually decreased. Still, India continues to be Nepal’s biggest trading partner. Machines from India is exported to Nepal while the goods are sent back here.
The two countries agreed to sign a Trade and Transit treaty to maintain good trade relations between the two countries. 21 border transit points were established and a warehouse in Calcutta port was provided to store the transit. In the 1980s the economical import-export cost became really high on both sides so there was a dispute. Eventually it was resolved. From that time on we realized it was necessary or India to maintain good trade relations with Nepal. Current problems: Nepal is still a developing country while India and China are growing strategically and rapidly.
Nepal has large hydropower resources which India can never seem to get enough of, so this problem is still challenging. Smuggling of opium in large quantities to sell illegally in the black market is also a crisis. Security and border problems pose risk to both the nations. Violation of the treaties signed by the countries have also caused major disturbances among the two countries. Sharing water resources: There is currently a confusion between Nepal and Bihar(India) due to the accusation of mismanagement of Nepal border water resources.
The two countries are still debating over the possession of the Mahakali water. The treaty has been signed a few years back but the argumentative discussion still remains. Environmental issues: The main environmental issues between the 2 countries are mostly on the Mahakali River treaty and the exponential usage of hydropower from Nepal by India. There have also been situations in which Nepal and India have illegally exported rarewood between countries. Of course, the government came to know about it later on but most environmental issues are cleared between Nepal and India.