The India-China border trade through Lipu Lekh has sparked a strong response from Nepal, with former Nepali Foreign Minister stating that such a development is both unexpected and unacceptable to Kathmandu. The diplomatic row revives the long-standing Kalapani-Lipu Lekh-Limpiyadhura border dispute, with Nepal insisting that the region falls under its sovereign territory.

Nepal’s Objection

Nepal has announced plans to send a diplomatic note to India regarding the Lipu Lekh trade arrangement with China. Leaders in Kathmandu argue that the agreement directly undermines Nepal’s territorial sovereignty. According to Nepal’s position, the Kalapani-Lipu Lekh-Limpiyadhura triangle—located at the northwestern frontier of the country—belongs to Nepal under historical treaties and cartographic evidence.

The Nepali side views the India-China trade activities in the area as a violation of Nepal’s territorial rights. Leaders across the political spectrum, including the opposition, have demanded that the government take a firm stance to protect national sovereignty.

India’s Response

India’s Ministry of External Affairs (MEA), however, dismissed Nepal’s objections. Officials reiterated that the Lipu Lekh region is an integral part of Indian territory, and that bilateral trade agreements with China in the area are fully within India’s sovereign rights.

The MEA emphasized that Nepal’s claims over the Kalapani-Lipu Lekh-Limpiyadhura sector are “not justified” and highlighted that maps and records clearly demonstrate India’s long-standing administrative control of the region.

This exchange of words is the latest chapter in the border disputes between India and Nepal, which have flared repeatedly in recent years.

Historical Background of the Dispute

The Kalapani-Lipu Lekh-Limpiyadhura issue dates back to the interpretation of the Sugauli Treaty of 1816 between Nepal and the British East India Company. The treaty defined the River Kali as Nepal’s western boundary, but disagreements have persisted over which stream constitutes the main Kali River.

India has maintained military and administrative presence in Kalapani since the 1962 Sino-Indian war. Nepal, however, insists that historical evidence and maps prove that the Lipu Lekh region lies within its borders. The issue escalated in 2019 when India released a new political map showing Kalapani within its territory, sparking nationwide protests in Nepal.

In 2020, the Nepali Parliament even amended the Constitution to incorporate a revised map that included Kalapani, Lipu Lekh, and Limpiyadhura as parts of Nepal. This decision strained bilateral ties, although dialogue channels have remained open since then.

Diplomatic Efforts and Upcoming Visit

Despite the rising tensions, Nepal confirmed that the planned visit of the Nepali Prime Minister to India remains on track. Officials from both sides have indicated that the border dispute will be part of the agenda during high-level talks.

Analysts see this as an opportunity for both governments to address long-standing irritants in bilateral relations. While India has been a crucial development partner for Nepal, Beijing has also strengthened its influence in Kathmandu, particularly through the Belt and Road Initiative (BRI).

Nepal’s objection to the Lipu Lekh trade agreement therefore underscores the sensitive balance Kathmandu maintains between its two large neighbours.

Wider Geopolitical Significance

The Lipu Lekh pass is strategically significant, not just for border trade, but also for its location as a route to Mount Kailash and Lake Mansarovar in Tibet, which holds religious importance for Hindus and Buddhists. The region is also vital for India’s security and connectivity in its Himalayan frontier.

China, on its part, has maintained trade routes with India through Lipu Lekh, which bypass Nepal, leading Kathmandu to see itself as marginalised in regional affairs. The new objection is therefore not just about sovereignty but also about Nepal’s geopolitical anxieties of being left out in India-China dealings.

Conclusion

The India-China border trade via Lipu Lekh has once again brought the Nepal-India border dispute into sharp focus. With Nepal preparing to send a diplomatic note of protest and India standing firm on its territorial claims, the situation highlights both the historical complexities and the geopolitical sensitivities of the Himalayan region.

However, the fact that Nepal’s Prime Minister still plans to visit India indicates that while the issue remains contentious, both sides understand the importance of dialogue, cooperation, and mutual engagement in maintaining stable bilateral relations.

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