1950 Indo-Nepal Treaty of Peace and Friendship

The 1950 India-Nepal Treaty of Peace and Friendship (official name Treaty of Peace and Friendship Between The Government of India and The Government of Nepal) is a bilateral treaty between Nepal and India establishing a close strategic relationship between the two South Asian neighbours. The treaty was signed at Kathmandu on 31 July 1950 by the last Rana Prime Minister of Nepal Mohan Shamsher Jang Bahadur Rana and Indian ambassador to Nepal, Chadreshwar Narayan Singh and came into force the same day as per Article 9 of the Treaty. Rana rule in Nepal ended just 3 months after the treaty was signed. The treaty allows free movement of people and goods between the two nations and a close relationship and collaboration on matters of defense and foreign policy. After an abortive attempt in 1952 of the Communist Party of Nepal to seize power with Chinese backing, India and Nepal stepped up military and intelligence cooperation under treaty provisions, and India sent a military mission to Nepal.

The India-Nepal Treaty of Peace and Friendship was signed by the last Rana Prime Minister of Nepal, Mohan Shamsher Jang Bahadur Rana, and the Indian Ambassador to Nepal, Chandreshwor Narayan Singh on 31 July 1950 and came into force the same day. It has ten articles. The treaty provides for everlasting peace and friendship between the two countries and the two governments agree mutually to acknowledge and respect the complete sovereignty, territorial integrity and independence of each other.

As per Articles 6 and 7, the two governments agree to grant, on a reciprocal basis, to the nationals of one country in the territories of the other, the same privileges in the matter of residence, ownership of property (requires RBI permission), participation in trade and commerce, movement and other privileges of a similar nature. This enables Nepali and Indian citizens to move freely across the border without passport or visa, live and work in either country and own property or conduct trade or business in either country. There are a large number of Indians living, owning property and working or doing business in Nepal as a beneficial aspect of the treaty for India. Reciprocally, many Nepalese live, own property and conduct business freely in India.

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