| GS Paper 2: India and its neighbourhood relations, Groupings and agrements involving India or affecting India’s interests, Effect of policies and politics of countries affecting India’s interests. |
Context: India and Bhutan share a long history of close diplomatic, cultural, and economic ties. Bhutanese Prime Minister Tshering Tobgay’s recent visit to India reaffirmed these strong bonds, with both nations focusing on sustainability, green energy, and furthering their cooperation across various sectors.
Key Highlights of Bilateral Meeting:
- Green Hydrogen Collaboration:
- India showcased its advancements in green hydrogen technology by presenting a hydrogen-fueled bus, reinforcing India’s commitment to sustainable mobility and enforcing India and Bhutan relations.
- Both countries discussed potential collaboration in energy, especially in adopting green hydrogen technology, aligning with Bhutan’s environmental goals.
- Energy Cooperation:
Bhutan expressed interest in expanding energy ties, especially in green hydrogen, positioning Bhutan as a key partner in India’s renewable energy transition and strengthening India and Bhutan relations.
India and Bhutan Relations:
- Diplomatic Ties:
- Diplomatic relations between India and Bhutan began in 1968, with the 1949 Treaty of Friendship laying the foundation. It was revised in 2007 to better suit modern needs.
- Cultural ties are fostered through initiatives like the India-Bhutan Foundation (2003), promoting exchanges in education, science, and culture. Bhutan’s pilgrimage to Buddhist sites in India remains significant.
- Recognition and Awards:
India has been honored for its contributions to Bhutan. For instance, the Indian Prime Minister received Bhutan’s highest civilian award, the Order of the Druk Gyalpo.
1. Development Partnership:
India has been a crucial partner in Bhutan’s socio-economic development, funding Bhutan’s Five-Year Plans since 1971. For the 12th Five-Year Plan (2018–2023), India contributed ₹5,000 crores for various projects.
2. Hydropower Cooperation:
Hydropower is the cornerstone of India-Bhutan relations. India helped Bhutan construct major hydroelectric projects, including allowing Bhutan to sell electricity to India.
3. Emerging Areas of Cooperation:
Space Cooperation: India launched the India-Bhutan SAT (2022), aiding natural resource management.
Fin-tech: Initiatives like the RuPay Card and the BHIM app aim to enhance cashless payments and financial integration between the two nations.
1. Trade and Commerce:
India is Bhutan’s largest trading partner. Bilateral trade increased significantly from USD 484 million (2014-15) to USD 1,615 million (2022-23). Free trade agreements and Indian investments across various sectors boost Bhutan’s economy.
2. Healthcare Support:
India supported Bhutan during the Covid-19 pandemic with vaccine supplies (Covishield) and medical assistance, and has helped build healthcare infrastructure in Bhutan.
3. Indian Diaspora:
Around 50,000 Indians work in Bhutan, contributing to the country’s economy. Indian academic Sanjeev Mehta was awarded the Pravasi Bharatiya Samman in recognition of his contributions to Bhutanese education.
Significance of Bhutan for India:
1. Strategic Importance:
Bhutan’s location between India and China gives it immense strategic significance for India. Bhutan serves as a buffer between India and China, safeguarding India’s northeastern region.
2. Cultural Heritage:
Both countries share deep cultural ties, primarily through Buddhism. This cultural connection strengthens mutual understanding.
3. Environmental Conservation:
Bhutan’s rich biodiversity and India’s role in supporting conservation efforts further strengthen regional environmental goals.
Challenges in India-Bhutan Relations:
1. China’s Influence:
Boundary disputes between Bhutan and China, especially around the strategically important Doklam plateau, pose concerns for India.
China and Bhutan are diplomatically working on resolving boundary issues through a three-step roadmap, but India remains vigilant given the strategic importance of the Siliguri corridor.
2. Hydropower Concerns:
Bhutanese concerns about hydropower projects, which they perceive to be more favorable to India, have led to public dissent.
3. BBIN Motor Vehicles Agreement:
Bhutan initially opted out of the BBIN agreement due to environmental concerns. However, India, Bangladesh, and Nepal continue with the initiative, raising questions about Bhutan’s role in regional connectivity.
Way Forward:
1. Economic Cooperation:
India should ensure fair trade agreements and hydropower projects that benefit both nations, addressing Bhutan’s concerns about dependency.
2. Adapting to Regional Changes:
India must carefully navigate China’s growing influence in the region and ensure Bhutan feels secure in its partnership with India.
3. Promoting Tourism and Cultural Ties:
India and Bhutan can develop joint tourism initiatives to boost economic ties and foster deeper cultural exchanges.
Conclusion:
India and Bhutan’s relationship continues to grow, grounded in mutual respect and shared interests. Strengthening economic ties, addressing boundary concerns, and promoting cultural exchanges will ensure long-term stability and prosperity for both nations. As Bhutan navigates regional pressures, its partnership with India will be essential in ensuring security and sustainable development.
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