India-Bhutan Relations

India-Bhutan Relations

News: The king of Bhutan, Jigme Khesar Namgyel Wangchuck, was recently on a 3 day visit to India.

Why is this visit significant?
• It comes at a time Bhutan is engaged in crucial border talks with China, and the developments have led to some unease in New Delhi.
• Bhutan sought a quick settlement of the border dispute, and establishing diplomatic relations with China took New Delhi by surprise.

Key outcomes of the Visit:
• Surveys for the Kokrajhar-Gelephu rail link connecting Bhutan to Assam were discussed, signaling a push for enhanced connectivity.
• Discussions initiated for a Bhutan to West Bengal rail link, enhancing regional transportation networks.
• Plans to develop a rail link to facilitate Bhutan-Bangladesh trade and upgrade checkpoints along the IndiaBhutan border.

Why Bhutan matters to India?
• New Delhi considers Bhutan as a buffer state between India and China, as Bhutan shares its borders with China. It gives buffer for the strategic Siliguri corridor(chicken’s neck) which connects the Indian mainland with the north eastern states.
• Hydropower cooperation with Bhutan forms the most important aspect of bilateral economic cooperation, which provides clean power for India and economic strength to Bhutan.
• India-Bhutan share people to people and strong cultural ties that dates back to several years. Bhutan’s religion, language and customs are heavily influenced by India’s culture.

Importance of India to Bhutan:
• India has been playing a crucial role in ensuring the security of Bhutan. For example, India’s military helps secure Bhutan’s borders.
• India is Bhutan’s largest trading partner and provides significant economic support.
• India has been helping Bhutan in different ways such as multi-sectoral project-tied assistance, small development projects and direct budgetary support.
• Intra-regional growth facilitated by India’s energy exchange, linking Bhutanese and Nepali hydropower suppliers and expanding to Bangladesh and Sri Lanka.

India’s hydropower projects in Bhutan
• Mangdechhu Hydroelectric Project: This 720 MW project was inaugurated by Prime Minister Narendra Modi on August 17, 2019.
• Chukha Hydroelectric Project: This is a 336 MW project that was commissioned between 1986 and 1988.
• Kurichhu Hydroelectric Project: This 60 MW project was commissioned between 2001 and 2002.
• Tala Hydroelectric Project: This 1020 MW project was commissioned between 2006 and 2007.

Challenges of Bhutan’s growing ties with China
• Security and strategic challenges for India if Bhutan gives into the claim of China over Doklam region.
• Economic implications on India in terms of trade and investments.
• Bhutan has largely followed pro-India policy but that might change as Bhutan agrees on maintaining diplomatic relations with China.

Way Forward
• Develop long term bilateral trade in key commodities such as Fertilizer, petroleum, coal etc. Focus should be on energy sector.
• Resolve pending boundary disputes with Bhutan.
• Improve connectivity and rail-road infrastructure in and with Bhutan.