A power trade agreement has been signed between Nepal and India on January 4th, 2024, conveying the message that the two nations’ goal is to continue to work together in the new year. India has solidified a deal to export 10,000 MW of hydroelectricity in the duration of ten years from Nepal. This is an important step forward in strengthening ties between the two nations and reevaluating and investing in Nepal’s rivers neglected potential to generate electricity for their citizens.

According to The Associated Press, optimism concludes the trade agreement as Indian Foreign Minister Subrahmanyam Jaishankar stated, “I assure you we are committed to extending our steadfast support and work with same earnestness to further realize the potential of the relationship for the full benefit of the people of the two countries”. He expresses a positive attitude as their relationship with Nepal shows promise for the future. Furthermore, according to Reuters, Suresh Bahadur Bhattarai, spokesperson for state-owned Nepal Electricity Authority stated, “This is a milestone for the attraction of investment for the development of our hydrosector”. His statement gives a positive outlook on this investment and the benefits that will follow.

This power trade agreement is beneficial for both India and Nepal, it encourages the idea that issues that causes war, such as competition over resources, can be compromised and utilized without the need of violence. Both nations take a stride to prevent conflict and show the world that something small can bridge the gap in two nations’ differences and prove that peace can be attained without aggression or fighting. Additionally, utilizing water as an energy source is more sustainable than energy sources that contribute to climate change. When nations have a common goal, such as preventing climate change from becoming worse, there is one less reason to fight because their lives are more threatened by climate change than each other.

The history of India-Nepal relations is complicated because of Nepal’s dependency on India but insistence of being their own entity having their own identity. Regarding security, India borders Nepal on three sides, making India a “security threat” to Nepal, but India also provides security to Nepal in times of need. An example is India being the first country to supply Nepal with COVID-19 vaccines. Nepal relies on India for resources and trade, but Nepalis still want to make clear that they are independent from India. There is anti-Indian sentiment in Nepal where Nepalis want to make their identities separate from Indians, anything said about their similarities are met with criticism and resentment. But according to the Indian Express, despite all these contradictions, India wants to redefine their partnership and eliminate any doubts of threats by also extending a financial package of 75 million USD to reconstruct Nepal’s infrastructure damaged in the 2015 earthquake.

Because this is a long-term commitment between two nations, it is hard to predict the success of the power trade agreement which leads us to play it by ear. Anything can happen within ten years that would void the power trade agreement but as of right now, peace and security seems promising between the two nations. They have agreed to work together and even though that does not completely mean forgiving each other for past resentments, it is a step forward on what could evolve in their future together. Hopefully, this becomes an example for other nations to move forward and work together as well.