India-Bhutan Relations

During his two-day official visit to Bhutan, Prime Minister Narendra Modi met with Bhutan’s King Jigme Khesar Namgyel Wangchuck on Friday. The purpose of Prime Minister Modi’s two-day state visit to Bhutan was to strengthen India’s unique relationship with Bhutan under the ‘Neighborhood First’ policy.

Trust and Goodwill

According to a report by The Times of India, it’s rare for any Prime Minister to undertake foreign trips after the announcement of parliamentary elections. However, PM Modi’s visit is an exception. Bhutan, as a neighbor, remains a focal point for India, and the bond of friendship, mutual trust, and goodwill between the two nations is strong. Bhutan has perhaps been more attentive to Indian interests in this region compared to any other country. Despite several offers from China, Bhutan remains India’s sole neighbor not involved in the Belt and Road Initiative. Bhutan’s geographical dependence on India for its developmental needs is significant, and Thimphu values India’s assistance for its socio-economic progress.

New Government in Bhutan

Bhutan now has a new government. PM Modi’s visit presents an opportunity to reaffirm India’s commitment to strengthening its robust partnership with Bhutan, inspired by Bhutan’s needs. At a time when China seeks dominance in regional relations, high-level visits like these become crucial. They not only dispel concerns but also reassure that Bhutan won’t drift away from India amidst China’s overtures.

China-Bhutan Relations

China has long invited Bhutan for a diplomatic mission in the country. However, Thimphu, mindful of Indian sensitivities, has been hesitant to engage, focusing more on resolving border disputes with China. After a gap of seven years, Thimphu hosted the 25th round of border talks with Beijing in 2023, surprising many with indications of nearing a resolution on the border issue. Bhutan has ensured India is adequately informed about its border talks with China.

Last Year’s Bhutan King’s India Visit

Last year, Bhutan’s King visited India. Some saw this as Bhutan’s way of reassuring India amidst concerns. Notably, this visit occurred six months after the King’s previous visit amid reports of China-Bhutan border talks. However, as negotiations reach a critical stage, Bhutan remains skeptical about any military-related initiatives traversing its territory from India, like the proposal to build a road from Arunachal’s Tawang to Bhutan’s Samdrup Jongkhar.

In Bhutan, held productive talks with PM @tsheringtobgay. We reviewed the complete range of India-Bhutan friendship, and agreed to boost our developmental partnership as well as deepen cultural linkages. pic.twitter.com/hWNyfSGK9u

— Narendra Modi (@narendramodi) March 22, 2024

Bhutan Awaits China

Bhutan is waiting for a defined border with China as not doing so might prompt Beijing to assert its claims on disputed territories further north. India, on the other hand, wouldn’t want to obstruct efforts by a sovereign nation to resolve disputes with its neighbor. However, New Delhi will remain cautious about future implications. China has already expressed its desire to enhance economic cooperation alongside establishing diplomatic relations, including border demarcation.

Doklam Dilemma for Bhutan

Of utmost concern for India is how any settlement on the Bhutan-China border might affect the Doklam region, a tri-junction between India, Bhutan, and China, which impacts India’s Siliguri Corridor connecting northeastern states. It’s a disputed area claimed by Bhutan but contested by China. In 2017, a major standoff ensued when India objected to China’s construction of a road in the disputed area.

Since then, India has reiterated the need for involving all concerned parties in determining the tri-junction points. Bhutan has engaged in extensive dialogue with India to expedite border delineation with China, including the Doklam issue. Even the new government has assured India it won’t backtrack on its border claims, from Doklam in the west to Sakteng in the east.

Development Objective

Since the 1960s, India has been the mainstay of Bhutan’s development assistance. India pledged ₹5,000 crore (73% of Bhutan’s external aid component) for Bhutan’s 12th Five-Year Plan, aiding in implementing over 600 projects. India has committed to further assistance for the 13th plan this year. Hydropower cooperation has been a highlight. India has constructed four major hydropower projects in Bhutan with two more under construction. India has become Bhutan’s top trading partner and primary source of investment, contributing 50% to its FDI. Collaboration has extended to new sectors like space, fintech, and e-learning.

Also Read: PM Modi’s Bhutan Visit: Boosting Connectivity And Countering China’s Influence