India and Nepal shares an open border. The unrestricted movement of people across the border over the centuries has led to the development of well-entrenched socio-cultural linkages. These linkages have, in turn, facilitated greater economic interdependence and political ties. There is no denying the fact that an open border has been a great facilitator of strong and unique bilateral relations. At the same time, it has given rise to many irritants and problems that raise serious concerns, like it allows easy egress to terrorists and insurgents (Das, 2010). Aggregately it affects the development in these areas. India shares 1751 kilometers long international land boundary with Nepal. Out of 96 Indian border districts of 17 Indian Border States, 20 districts of 5 Indian Border States are situated on the Indo-Nepal Border. 3.8 % of India’s total population is residing in these districts located on Indo-Nepal Border. But it constitutes only 2.1 % of India’s total area.