What the India-Nepal Peace treaty is, and why Nepal has problems with it The treaty to strengthen and develop India-Nepal ties has been in question in Kathmandu over the years. A call to revise it was raised again earlier this month. Nayanima Basu 24 January, 2021 5:27 pm IST Text Size: A+ New Delhi: On 31 July 1950, India and Nepal signed a treaty of peace and friendship in an effort to “strengthen and develop these ties and to perpetuate peace between the two countries”. Over seven decades later, clamour is now growing louder in Nepal to “revise” the pact to reflect “new changes and realities”.