Syllabus: India and its neighborhood- relations
Overview
- Political Foundation: Robust relationship based on Treaty of Friendship (1949, renegotiated 2007); formal diplomatic ties established 1968.
- Hydropower Cooperation: The 2006 bilateral agreement and the 2009 Protocol govern mutually beneficial hydropower collaboration arrangements.
- Economic Significance: Sale of hydropower accounts for largest share of Bhutan’s GDP demonstrating economic dependence.
- Bhutan’s Gains: India provides financing access and energy market entry supporting hydropower development catalyzing socio-economic growth.
- India’s Benefits: Clean energy imports from Bhutan sustainably alleviate power deficiency; Basochhu, Nikachhu plants trade on Indian exchanges.
- Buddhist Connect: Both nations promote Buddhist pilgrimage; Kolkata’s Asiatic Society loaned 16th-century monk Zhabdrung Ngawang Namgyal statue.
- Wildlife Conservation: Transboundary Manas Conservation Area (TraMCA) protects wildlife in Manas National Park (India) and Royal Manas (Bhutan).
India’s Strategic Interests
- Trade Partner: India is Bhutan’s largest trade partner with balance favoring India commercially.
- Strategic Buffer: Bhutan acts as buffer between China and India, especially along sensitive Chumbi Valley.
India’s Support to Bhutan
- Free Trade: 1972 Trade, Commerce and Transit Agreement (revised 2016) establishes free trade regime; duty-free Bhutanese exports transit.
- Development Aid: India increased support under Bhutan’s 13th Five Year Plan (2024-29) and Economic Stimulus Programme.
- Security Provider: Doklam Standoff (2017) invoked 2007 Treaty preventing Chinese road construction to Gipmochi on Bhutanese territory.
- Military Training: IMTRAT (1961-62) provides training to Bhutanese forces; BRO constructed majority roads under Project ‘DANTAK’.
- Additional Support: Scholarships for Bhutanese students; India contributes 50% of Bhutan’s FDI; funds ‘Digital Drukyul’ optical fibre.
Cooperation in New and Emerging Areas
- Space Cooperation: Jointly developed India-Bhutan SAT launched in 2022 for earth observation applications.
- Fin-Tech Collaboration: Launched RuPay Card in two phases (2019-2020) for cross-border payments facilitating transactions.
- Digital Payments: Introduced BHIM app in 2021 promoting cashless transactions enhancing financial inclusion.
- e-Learning Connectivity: Integration of Bhutan’s Druk Research Network with India’s National Knowledge Network enhancing educational connectivity.
Growing Concerns
- China-Bhutan Proximity: 2023 marked first Bhutanese Foreign Minister visit to China; China accounts over 25% Bhutan’s trade.
- Diplomatic Inclination: Bhutanese inclined towards establishing diplomatic relations with China and resolving border disputes.
- Chinese Assertiveness: China considers Bhutan part of “five-finger policy” viewing Tibet as palm, Bhutan as finger.
- Border Disputes: Bhutan-China signed “three-step roadmap” (October 2021) expediting boundary dispute resolution negotiations.
- Doklam Threat: India fears China may pressure Bhutan ceding Doklam plateau access threatening Siliguri Corridor strategically.
- Militant Groups: North-East insurgent groups like ULFA, NDFB use Bhutan territory as hideout bases.
- Stalled Projects: Bhutan stalled the BBIN Motor Vehicle Agreement over environmental concerns affecting regional connectivity.
Way Forward
- Economic Cooperation: India must enhance engagement through continued development assistance and strengthened mutual security commitments.
- Human Connections: Strengthen bilateral ties through educational collaborations and exploring deep-rooted cultural connections comprehensively.
Q- Analyze the strategic significance of India-Bhutan relations and examine how India should respond to Bhutan’s engagement with China while maintaining its special relationship. (10 Marks)