INDIA-
BHUTAN RELATIONS – INTERNATIONAL
News: India, Bhutan resolve to expand already
close ties
What
is in the news?
●
India and Bhutan have sketched a five-point broad roadmap to expand the
"time-tested" relations besides delving into respective national
security interests.
●
Foreign secretary said the proposed rail link project between Kokrajhar (Assam)
and Gelephu (Bhutan) will be expedited and that it would be the first ever
rail link between the two countries.
Key
takeaways:
Five broad points that
were identified to expand the ties are as follows.
1.
Economic partnership:
●
It included economic and development
partnership which included cooperation for Bhutan's 13th Five Year Plan that
begins next year.
●
India's support would include relevant
financial assistance for the reform process in Bhutan and for projects based on
development partnership.
2.
Infrastructure connectivity:
●
Several issues relating to trade,
connectivity and investment cooperation, which in turn included discussions on
infrastructure connectivity, rail links, air connectivity and inland waterways
among others.
●
New infrastructure projects include an integrated checkpoint for trucks at Jaigaon,
a checkpoint for third country nationals and a cross-border rail link from
Kokrajhar to Gelephu.
3.
Trade improvement:
●
The elements pertaining to long term and
sustainable trade facilitation measures
that India and Bhutan could take, which would link to the economic growth and
prosperity of both economies.
4.
Energy:
●
The new paradigms of cooperation in areas
of energy which also provides for cooperation
in areas of non-hydro-renewable space.
●
Upward revision of the tariff of the Chhukha hydro-electric project and
finalisation of modalities for new hydroelectric projects, hydropower projects,
including the Sankosh hydroelectric project.
●
India also agreed to buy power from the basochhu power project.
5.
Emerging sector cooperation:
●
The cooperation in new sectors, which
included space and startups.
●
Future partnerships could include space
research, skilling, startups and STEM
education.
About
India-Bhutan relations:
●
The basic framework of India-Bhutan
bilateral relations was the Treaty of
Friendship and Cooperation signed in 1949 between the two countries and was
revised in 2007.
●
It called for peace between the two
nations and non-interference in each other’s internal affairs.
●
Bhutan
shares its border with four Indian states - Assam, Arunachal
Pradesh, West Bengal and Sikkim with a length of 699 km and serves as a buffer
between India and China.
●
Bhutan is one of the central pillars of India's "Neighbourhood first policy"
and "Act East India policy".
Importance
of India to Bhutan:
1.
Security:
●
India has been playing a crucial role in
ensuring the security of Bhutan. For instance, India’s military helps secure
Bhutan’s borders, and India has helped Bhutan in countering insurgent
groups.
2.
Socio-economic development:
●
India has been extending assistance to
Bhutan’s socio-economic development since the early 1960s, including multi-sectoral project-tied assistance,
small development projects, and direct budgetary support.
3.
Infrastructure development:
●
India provides financial and technical
assistance to Bhutan to improve their infrastructure like rail link between Kokrajhar to Gelephu.
4.
Economic support:
●
India
is Bhutan’s largest trading partner and provides significant
economic support. For instance, since 2014, India’s trade with Bhutan has
almost tripled from US$484 million in 2014-15 to US$1.42 billion in 2021-22,
accounting for about 80 percent of Bhutan’s overall trade.
5.
Energy requirements:
●
Various hydro power projects were
commissioned by India to Bhutan to fulfil their power requirement.
●
The ongoing cooperation between India and
Bhutan in the hydropower sector is covered under the 2006 bilateral agreement
for cooperation and its Protocol signed in 2009.
●
Four hydro-electric projects (HEPs)
totalling 2136 MW are already operational in Bhutan and are supplying
electricity to India.
●
The 720 MW Mangdechhu, 1200 MW
Punatsangchhu-I, 1020 MW Punatsangchhu-II in Inter-Governmental mode are under
various stages of implementation.
●
The Concession Agreement for the first
Joint Venture Hydro Electric Power Project, 600 MW Kholongchhu, was signed in
2020.
Importance of Bhutan to India:
1.
Strategic location:
●
Bhutan is strategically located between
India and China, which makes it an important buffer state for India. Bhutan’s
strategic location ensures India’s security and helps in maintaining regional stability.
2.
Cultural and historical relation:
●
India and Bhutan share a common cultural
heritage and have historical ties dating back centuries. India has helped
Bhutan preserve its cultural heritage and has supported Bhutan in its efforts
to promote tourism.
3.
Hydropower cooperation:
●
Mutually beneficial hydropower cooperation
with Bhutan forms the core of bilateral economic cooperation, providing clean
power for India and economic prosperity for Bhutan.
●
Hydroelectricity has become one of the
biggest revenue earners of Bhutan, which makes Bhutan the country with the
highest per capita income in South Asia today.
4.
Multilateral partnership:
●
Both India and Bhutan are founding members
of SAARC that deals with economic,
social and cultural development of the South Asian Region. Both of them also
share other multilateral forums such as BBIN
(Bangladesh, Bhutan, India, and Nepal), BIMSTEC
(Bay of Bengal Initiative for Multi Sectoral Technical and Economic
Cooperation) etc.
Challenges:
1.
China's relationship with Bhutan:
●
China’s continuous claims to important
border areas such as Chumbi valley and Doklam and its continuous efforts for
establishing strong diplomatic and economic relations with Bhutan have been a
continuous source of concern for India.
●
Bhutan is facing a high unemployment rate and national debt, which could provide
possible entry to China, something which doesn’t suit India’s interests.
2.
Negative perception on India:
●
There have been instances when India has
meddled in Bhutan’s internal affairs. This has led to negative perception of
India in the minds of Bhutanese.
●
From an internal security perspective,
illicit establishment of camps by militant outfits in the dense jungles of
south-east Bhutan is a cause of concern for both the nations.
3.
Hydropower project:
●
There is a growing feeling in Bhutan that
India’s development of Bhutan’s hydropower production is driven by
self-interest as it is getting Bhutan’s surplus power at relatively cheap
rates.
4.
Multilateral platforms:
●
SAARC and BIMSTEC are not functioning
properly and didn't put forward any plan for the regional developments and
bilateral developments in recent times.
Recent
developments in the relations:
1.
E-Library project - It has opened up new vistas of
education and knowledge sharing between two countries.
2.
India Bhutan Satellite - It is due to launch into space
shortly.
3.
Maitri Initiative - Bhutan is the first country to receive
the Covishield vaccines under India's Vaccine Maitri Initiative.
4.
STEM
- Two countries are collaborating closely on STEM through regular placement of
Bhutanese youth in our IITs.
5.
Financial connectivity - It has touched new heights through
the launch of the RuPay card and the BHIM app.
6.
Multilateral Partnership - Both India and Bhutan are founding
members of SAARC that deals with economic, social and cultural development of
the South Asian Region. Both of them also share other multilateral forums such
as BBIN, BIMSTEC etc.
WAY
FORWARD:
●
India needs to step up efforts to
publicize the benefits that accrue to Bhutan from Indian projects.
●
India continuously needs to explore new areas of cooperation with
Bhutan.
●
India should try as much as possible to
remain out of Bhutan’s internal matters, though it can act as a mentor.
●
Safety
of border from China is a concern for both nations.
Therefore, both sides need to work together on this issue.
●
Being neighbours, it is necessary that
both nations continuously recognise value of each other.