India and Bhutan share deep historical and cultural roots. They both hold common cultural ties, with Buddhism, Hinduism, and other traditions being customary among their respective societies. Bhutan was one of the initial nations to recognize India’s sovereignty and independence in 1947 and has since offered steadfast support to India’s growth and modernization.
Indian pilgrimages to Bodh Gaya, Rajgir, Nalanda, Sikkim, Udayagiri, and other Buddhist sites are also popular among the Bhutanese population. The Treaty of Friendship signed between the two nations in 1949 (revised in 2007) set the foundation for a peaceful relationship and non-interference in each other’s internal affairs.
Strategic and Security Cooperation
India has contributed significantly to the preservation of Bhutan’s sovereignty and territorial integrity by providing financial and technical aid in sectors such as defense, infrastructure, and communication. The 2017 Doklam standoff prompted Bhutan to grant access to Indian troops in its territory to resist Chinese incursions, illustrating Bhutan’s pivotal role in this strategic cooperation.
Economic and Development Partnership
The India-Bhutan Agreement on Trade, Commerce, and Transit, established in 1972 and revised in 2016, introduced a free trade regime between the two countries. As Bhutan’s largest trading partner, India provides economic assistance and collaborates on socio-economic growth projects related to agriculture, irrigation, infrastructure, energy, health, education, and culture. India is also the leading investor in Bhutan, contributing to half of the country’s total Foreign Direct Investment (FDI).
Hydropower Cooperation
Under the 2006 Agreement on Cooperation in Hydropower, India pledged to assist Bhutan in developing at least 10,000 MW of hydropower and importing surplus electricity by 2020. Four hydroelectric projects located in Bhutan currently supply electricity to India.
Multilateral Partnership and People-to-People Contacts
India and Bhutan collaborate within various multilateral forums such as the South Asian Association for Regional Cooperation (SAARC), BBIN (Bangladesh, Bhutan, India, and Nepal), and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Moreover, around 50,000 Indian citizens work in Bhutan in sectors like construction, education, and infrastructure.
Challenges & Implications of India-Bhutan Relations
Despite the strong relationship, China’s increasing presence along Bhutan’s disputed border raises strategic concerns for India. The Doklam standoff in 2017 highlighted these tensions, which may affect India-Bhutan relations in the future.
Bhutan’s economy, heavily reliant on hydropower, sees India playing a significant role in its development. However, concerns regarding the terms of some projects favoring India have led to opposition within Bhutan. Disputes have also emerged over trade and tourism policies, with Bhutan expressing anxiety about the environmental impact and proposing entry charges for Indian tourists.
The Way Forward
To ensure continued amicable relations, a focus on collaboration through regional multilateral platforms is necessary. Transparent communication between India, Bhutan, and China could help alleviate border tensions. Additionally, addressing concerns over hydropower projects and formulating sustainable policies through dialogue would be beneficial.
India can also assist Bhutan in education and skill development through scholarships and training programs. Such initiatives would enhance the skills of Bhutanese professionals, providing a path for future cooperation and mutual growth.
China-Bhutan Relations: Implications for India
The recent 13th Expert Group Meeting (EGM) between China and Bhutan in Beijing marked the establishment of a Joint Technical Team on the Delimitation of the China-Bhutan Boundary. This move could have repercussions for India because of its strategic interests, especially in the Doklam tri-junction, where India, Bhutan, and China meet.
Moreover, China’s revival of its claim to Bhutan’s eastern region, known as Sakteng Wildlife Sanctuary, borders the Indian state of Arunachal Pradesh, which China also claims. This dispute could be a pressure tactic to compel Bhutan into accepting China’s terms on the boundary issue while challenging India’s sovereignty over Arunachal Pradesh. These moves signal China’s increased economic and diplomatic ties with Bhutan that could potentially weaken India’s influence in the region.
