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  • Nov 03, 2023
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India Bhutan Relations

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  • GS Paper 2 India and its neighborhood- relations.  Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
  • Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora
  • Tags: #India #Bhutan #IndiaBhutan #partnership #UPSC #GS2 #BilateralRelations

Why in the news?

King of Bhutan, Jigme Khesar Namgyel Wangchuck, arrived in India on the 2nd of November 2023. The official visit will span eight days. Bhutan’s King will meet with Indian Prime Minister Narendra Modi. The King will also visit the Indian states of Assam and Maharashtra. The External Affairs Minister and senior officials from the Government of India will hold discussions with the Bhutanese King.

The visit aims to review the entire scope of bilateral cooperation. The goal is to further enhance the exemplary bilateral partnership in various sectors. The visit serves as an opportunity for both nations to strengthen their relationship and cooperation across diverse areas.

History of India-Bhutan Relations

  • Early Relations and Independence:
    • Bhutan, historically isolated due to its mountainous geography, signed its first bilateral treaty with the British Empire in 1910, allowing the British to guide its foreign affairs and defense.
    • Bhutan was among the first countries to recognize India’s independence in 1947, establishing the foundation for close ties.
  • Treaty of Friendship (1949):
    • India and Bhutan signed the Treaty of Friendship on August 8, 1949, emphasizing non-interference in each other’s internal affairs.
    • The treaty promotes free trade and extradition agreements.
    • It designated Bhutan as a protected state, not a protectorate, retaining the power to conduct its independent foreign policy.
  • Security and China’s Annexation of Tibet:
    • China’s annexation of Tibet brought India and Bhutan closer, as India viewed its relations with Bhutan and Nepal as vital to its “Himalayan Frontier” security policy.
    • In 1958, Prime Minister Nehru reiterated support for Bhutan’s independence and declared that aggression against Bhutan would be seen as an act of war by India.
  • Economic and Military Aid (1950s):
    • During the 1950s, India significantly increased economic, military, and development aid to Bhutan.
    • India supported Bhutan in modernizing its military.
  • Border Demarcation: The talks between India and Bhutan took place between 1973 and 1984. Most disagreements were resolved, but some small sectors remained unresolved, including the middle zone between Sarpang and Geylegphug and the eastern frontier with the Indian state of Arunachal Pradesh.
  • Renegotiation of Friendship Treaty (2007):
    • The new treaty removed Bhutan’s obligation to seek India’s guidance on foreign policy and its permission to acquire arms.
  • Recent Developments:
    • Prime Minister Narendra Modi chose Bhutan as his first foreign destination, emphasizing regional cooperation over global cooperation.
    • He inaugurated the Supreme Court Complex in Bhutan and pledged further support for the IT and digital sectors.
    • In January 2021, India sent free doses of the Covid-19 vaccine to Bhutan, as part of its “neighborhood first policy,” extending help to other neighboring nations like Maldives and Bangladesh.

Doklam Standoff and its effect on India-Bhutan Relations

  • The Doklam Standoff was a 73-day military stand-off between India and China in Doklam, a disputed territory near the trijunction of India, China, and Bhutan.
  • The standoff began on June 16, 2017, when China began constructing a road in Doklam, which India claimed was on Bhutanese territory.
  • India sent troops to the area to stop the construction, and the two sides remained in a tense standoff until August 28, 2017, when China withdrew its troops.
  • The Doklam standoff had a significant impact on India-Bhutan relations.
  • The Doklam standoff could have led to a loss of trust between the two countries, and it could make it more difficult for Bhutan to maintain its neutrality in the Sino-Indian rivalry.

Bhutan’s Boundary Talks with China: India’s Interests

  • Bhutan’s border with China, particularly to the west, is significant for India due to the presence of a trijunction of the three countries and its proximity to India’s strategic Siliguri corridor.
    • This boundary issue is not solely a bilateral matter between Bhutan and China; it directly involves India’s interests.
  • India and Bhutan engage in high-level consultations to maximize and reinforce their mutual strategic interests.
  • India’s Position: India has made it clear that it will not interfere in Bhutan-China negotiations.
    • However, when it comes to India’s national security, it will not compromise, indicating India’s commitment to safeguard its strategic interests.
  • Bhutan’s Stance Post-Doklam Standoff:
    • Following the Doklam standoff between India and China in 2017, Bhutan decided not to make any decisions regarding its border with China without considering India’s interests.
    • Bhutan actively monitors Chinese construction in disputed areas and keeps the Indian government informed.
    • Likewise, India receives regular briefings from Bhutan on the progress of border talks with China.
  • India’s Points of Concern:
    • Negative sentiments and misinformation about India are prevalent on social media in Bhutan, with some Bhutanese feeling that India is using security concerns as an excuse to exert control over Bhutan.
    • China employs various strategies, including trade, showcasing modern cities, and offering scholarships, to attract Bhutanese citizens, raising concerns about China’s influence in Bhutan.

Significance of the India-Bhutan Relationship

  • Geographic Proximity: India and Bhutan share a border that extends for over 600 kilometers.
  • Strategic Buffer: Bhutan serves as a crucial strategic partner for India, acting as a buffer state between India and China.
  • Mutual Interests: The interests of Bhutan and India are intertwined through institutional and economic frameworks. Their mutual interests create a strong and interconnected relationship.
  • Development Partnership: India is Bhutan’s most significant development partner, offering substantial assistance for the country’s progress.
  • Trade and Imports: India is Bhutan’s largest source of imports, strengthening their economic ties.
  • Hydroelectricity Cooperation: India plays a pivotal role in helping Bhutan harness its hydroelectric power potential. India purchases hydroelectricity from Bhutan, making it a key source of revenue for the country.
  • Economic Prosperity: The revenue generated from hydroelectricity has significantly boosted Bhutan’s per capita income, making it the country with the highest per capita income in South Asia.
  • India’s financial support to Bhutan:
    • In the fiscal year 2012-2013, India’s budgetary contribution to Bhutan amounted to approximately INR 30 billion. This financial assistance steadily increased over subsequent years, reaching INR 61.60 billion in the fiscal year 2015-2016.
    • As a result, Bhutan has become the largest recipient of India’s aid, indicating the strengthening economic ties between the two countries.

India – Bhutan Shared interests

  • Security: India and Bhutan have a common interest in maintaining security in the region and deterring Chinese aggression. The Doklam standoff in 2017 showed that the two countries are willing to work together to defend their shared interests.
  • Economy: India is Bhutan’s largest trading partner and development partner. India provides Bhutan with financial assistance, infrastructure development, and technical expertise. Bhutan also exports electricity and other goods to India.
  • Culture: India and Bhutan share a strong cultural connection. The two countries have similar Buddhist traditions and religious beliefs. They also share a common history and language.
  • Hydropower: Bhutan has a significant hydropower potential, and India is helping Bhutan to develop its hydropower resources and export electricity to India.
  • Tourism: Bhutan is a popular tourist destination, and India is helping Bhutan to develop its tourism industry and attract more Indian tourists.
  • Education: India provides educational opportunities to Bhutanese students at all levels.
  • Healthcare: India provides medical treatment to Bhutanese citizens and helps Bhutan to improve its healthcare system.

Mains Question

In the context of India-Bhutan relations, Analyze the strategic and economic dimensions of their partnership and its significance for regional geopolitics.