There are 2 periods that can be identified in the British relations with Nepal.
- The first phase was from the “Subsidiary Alliance” of Wellesly to the “Treaty of Sagauli.
- The second phase was from the 1857 Indian Revolt.
Before we go into the details of Nepal’s freedom from colonisation, it is necessary to understand the resources that it had to offer. This is because, colonisation is a process driven by economic desires or strategic imperatives, not territorial ambitions. Unless a territory is economically valuable, it makes little sense to spend resources to subdue the ambitions of the people of the region and hold it under control.
Nepal, after the expansion it witnessed under Prithvi Narayan Shah and Pratap Singh Shah, came to comprise of the hills of Garhwal, Kumaon, present day Nepal and Sikkim. The primary resources of the Kingdom were the rich forests of the Terai region, Garhwal and Kumaon. The hills held little of value.
Once the British rule was consolidated in India, and the British were looking forward to expand following the subsidiary alliance, they had a resident posted at Kathmandu. The primary task of the resident was to enquire into the economy of Nepal. Of particular interest was the supposed in-flow of Gold from Tibet and the rich timber and pine forests. The Nepal government was hostile to the Resident and he was soon withdrawn from Kathmandu.
Another constant irritant in the relations between the two powers was the Terai region. Disputes over the border villages kept on surfacing, given that it was a 1100 kilometer border.
Under the marquee of Hastings’ Governor-Generalship, the Anglo Nepal war started. The company hoped for an easy win. However, they were soon to discover the fighting prowess of the hill people. The war dragged on for a year. However, the company had superior resources at its disposal and there was no way valour alone could win a war. Thus in 1813 the war ended with Nepalese defeat.
The Nepalese had to agree to the Treaty of Sagauli, under which they had to agree to leave the entire area of Sutlej Hills, Garhwal and Kumaon under English posession and also have a Resident at Kathmandu. Having possession of the rich Terai forests meant that there was no compelling economic reason for the British to further expand its territory in Nepal. The Kingdom that was let alone, more or less corresponds, to present day Nepal.
The second phase was after the 1857 revolt. In this phase, the British, in-order to show appreciation for the Gurkhas’ effort in suppressing the revolt, ceded some of the Terai districts to Nepal.
In short, Nepal managed to remain uncolonised becuase it did not make economic sense to do so. Besides, it made a lot of sense to befriend the brave Gurkhas who were invaluable as a fighting machine for the comapany, and later the Raj.