Building a Stronger Friendship: India and Bhutan Reinforce Bilateral Cooperation

In early April, the King of Bhutan, Jigme Khesar Namgyel, embarked on a three-day visit to India. This visit presented an opportunity for both nations to reflect on their long-standing bilateral cooperation and further reinforce their friendship.

The joint statement issued after the visit highlighted the extensive cooperation between India and Bhutan in various sectors.

India reaffirmed its support for Bhutan’s forthcoming development plans, including the provision of standby lines of credit, in addition to the two existing facilities. The hydropower sector, which is the cornerstone of India-Bhutan ties, received particular attention.

India has agreed to address several requests from Bhutan, including the acceleration of the long-delayed Sankosh and Punatsangchhu hydropower projects. Furthermore, India has committed to revising the hydroelectricity rates from Chhukha upwards to benefit Bhutan further.

The Basochhu power project has also been included in an agreement wherein India will purchase electricity. Besides hydropower, the emphasis on non-hydropower renewables such as solar power and e-mobility sectors will be prioritized.

The realm of infrastructure development will witness the establishment of an integrated checkpoint for trucks at Jaigaon, along with a separate checkpoint dedicated to third-country nationals. Furthermore, an inaugural cross-border rail link between Kokrajhar in Assam and Gelephu in Sarpang district, Bhutan has been envisaged, marking the first-ever rail link between the two nations.

Discussions between the leaders of the two countries also covered Bhutan’s 13th Five-Year Plan, financial support for Bhutan’s domestic reform process as well as institutional capacity building. India will be working with Bhutan on new “long-term sustainable” arrangements for agricultural exports from Bhutan to India.

The process of setting up a mechanism to supply critical materials like petroleum, fertiliser and coal to Bhutan is also on the anvil.

These developments complement the already strong bilateral cooperation and partnership between the two countries in various sectors. India’s partnership with Bhutan’s development is not limited to the hydropower sector but encompasses almost all the sectors including education, infrastructure, social services, and technology advancement, amongst others.

For Bhutan’s 12th Five Year Plan (2018-2023), India will be providing grant assistance of Rs. 4,500 crores, along with a transitional Trade Support Facility of INR 400 crores over a five-year period to strengthen the economic linkages.

In the realm of scientific and technological cooperation, the recent launch of a joint India-Bhutan SAT satellite by ISRO marks a new era of India – Bhutan relations. This satellite is expected to enable Bhutan by providing real-time data and high-resolution images for land mapping and facilitating managing its natural resources, forests and agriculture. This development is in line with the growing India-Bhutan relations in new avenues such as advanced technology, space and digital systems.

Several key initiatives have already been launched in the fields of digital and space, such as RuPay, the integration of Bhutan’s DrukREN with India’s national Knowledge Network and the establishment of Ground Earth Station by ISRO to harness the services of South Asia Satellite.

Thus, India is enabling the development of Bhutan’s digital and space infrastructure so as to harness the potential of Bhutanese youth via skill development and employment generation. Through digital and space cooperation, not only India is spreading its technological footprint but Bhutan is also benefiting from India’s investments and expertise in bringing about transformation in these sectors in Bhutan.

India has always kept Bhutan’s socio-economic development and its territorial integrity as a key plank in its foreign policy agenda.

China however has been seeking a land swap with Bhutan to get Doklam in lieu of concessions on disputed territory in the north of Bhutan. For long China has been attempting to shift the tri-junction seven kilometres south of its current location – Batang La, to a peak called Mount Gipmochi. This would end up making the entire Doklam plateau a Chinese territory.

This occupation of territory would then pose threat to the Siliguri corridor, also called Chicken’s Neck, a narrow strip of land geographically connecting India’s northeast region to the rest of India. But it is imperative for Bhutan to be wary of China’s salami-slicing strategy and its expansionist and aggressive designs in the region.

The visit to India by Bhutan’s king is an effort to cement and reiterate bilateral ties with India.

The relationship between India and Bhutan is based on the pillars of trust, goodwill and mutual understanding. The two neighbours have a close civilisational, cultural and economic relationship that dates back centuries.

The basis of this relationship is formed on the pillars of the Indo-Bhutan Friendship Treaty of 1949 which emphasises “perpetual peace and friendship, free trade and commerce, and equal justice to each other’s citizens.” Bhutan not only shares a 699 kilometres long boundary with India adjoining four Indian states but is also a key player in two of India’s important foreign policy elements – Neighbourhood Policy and Act East Policy.

Throughout its foreign policy agenda, India has consistently prioritized the socio-economic development and territorial integrity of Bhutan, reflecting the deep-rooted strategic partnership and enduring friendship between the two nations.

In this regard, Bhutan has reiterated its commitment to maintaining a “time-tested” friendly relationship with India, seeking to keep its neighbour informed and involved in any negotiations or agreements that might affect India’s national security.

The shared commitment of India and Bhutan to mutual respect, trust, and cooperation has been pivotal in driving progress across diverse sectors, ranging from infrastructure development to education, tourism, and culture.

The strategic significance of this partnership extends far beyond their borders, serving as a model for other nations to emulate in fostering constructive, collaborative relationships with their neighbours.

As India and Bhutan move forward together, it is crucial to continue nurturing their strategic partnership, leveraging their respective strengths to address emerging challenges and opportunities. The pledge by Bhutan to maintain close communication with India regarding issues of national security is a testimony to the strength of their relationship.

By upholding these values, India and Bhutan can continue to inspire the world, demonstrating that enduring partnerships founded on mutual respect, trust, and cooperation can drive positive change and progress, both within and outside their borders.

Source: The Bhutan Live