UPSC International relation

India Bhutan Relations 2019

April 27, 2025
5 min read
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Bhutan's Prime Minister visited India in 2019, underscoring the enduring strength of the bilateral relationship between the two nations. Bhutan views India as a vital partner in its foreign policy. This close partnership is founded upon the 1949 Friendship Treaty, later amended in 2007, which emphasizes principles of peace, friendship, and the mutual safeguarding of national interests. India stands as Bhutan's foremost economic and developmental ally, having consistently contributed to Bhutan's Five-Year Plans since 1961. Furthermore, India has played a significant role in the development of Bhutan's hydropower sector, assisting in the construction of key projects such as the 1020 MW Tala Hydroelectric Project, the 336 MW Chukha Hydroelectric Project, and the 60 MW Kurichhu Hydroelectric Project.

The visit of Bhutan's Prime Minister to India in 2019 served as a powerful reaffirmation of the deep-rooted and multifaceted relationship between the two countries. This enduring partnership, far from being a recent development, is built upon decades of close cooperation, shared strategic interests, and a foundation of mutual trust and respect. The visit highlighted the critical role India plays in Bhutan's economic development and security, as well as the broader implications of this bilateral relationship for regional stability and geopolitical dynamics.

The bedrock of India-Bhutan relations is the 1949 Treaty of Friendship, significantly amended in 2007. This treaty is not merely a symbolic document but a comprehensive framework that governs the interactions between the two nations across a wide spectrum of areas. The core principles enshrined within the treaty are perpetual peace and friendship, reflecting a commitment to resolving any disputes through peaceful means and fostering a spirit of goodwill. Crucially, the treaty also addresses the mutual protection of national interests, acknowledging the shared security concerns and the need for cooperation in safeguarding their respective sovereignty and territorial integrity. The 2007 amendment was particularly significant, as it removed a clause that required Bhutan to seek India's guidance on its foreign policy. This amendment reflected Bhutan's growing confidence and autonomy in its international relations, while simultaneously reaffirming the underlying strength and maturity of the bilateral partnership. The amended treaty allows Bhutan to pursue its foreign policy objectives independently, while still benefiting from India's support and cooperation. This demonstrates a relationship based on mutual respect and understanding, rather than dependence.

India's commitment to Bhutan's economic development is another cornerstone of the relationship. Since 1961, India has been a consistent and significant contributor to Bhutan's Five-Year Plans, which serve as the country's national development blueprints. These plans outline Bhutan's economic and social goals for each five-year period, encompassing a wide range of sectors, including infrastructure, education, healthcare, agriculture, and energy. India's financial and technical assistance has been instrumental in helping Bhutan achieve its development objectives and improve the living standards of its citizens. This assistance is not merely a matter of providing funds; it also involves the transfer of knowledge, expertise, and technology, enabling Bhutan to build its own capacity and achieve sustainable development.

The hydropower sector stands as a shining example of successful collaboration between India and Bhutan. Bhutan possesses significant hydropower potential, thanks to its abundant rivers and mountainous terrain. Recognizing this potential, India has partnered with Bhutan in developing several major hydropower projects, including the Tala, Chukha, and Kurichhu projects. These projects not only generate electricity for Bhutan's domestic consumption but also export surplus power to India, providing a crucial source of revenue for Bhutan's economy. The hydropower projects are a win-win situation for both countries. Bhutan benefits from a reliable source of electricity and a significant revenue stream, while India gains access to clean and renewable energy, contributing to its energy security and reducing its dependence on fossil fuels. The development of these projects also involves significant technology transfer and capacity building, further strengthening Bhutan's capabilities in the energy sector.

Beyond the economic and energy sectors, India and Bhutan also maintain close cooperation in areas such as security, culture, and education. India has provided training and equipment to the Royal Bhutan Army, helping to strengthen Bhutan's defense capabilities and maintain stability in the region. The two countries also share strong cultural ties, with many Bhutanese studying in Indian universities and cultural exchanges taking place regularly. This people-to-people contact fosters understanding and goodwill, further cementing the bonds between the two nations.

The geopolitical context of the India-Bhutan relationship is also crucial to understand. Bhutan is strategically located between India and China, and its relationship with India is an important factor in the regional balance of power. India has a strong interest in maintaining close ties with Bhutan to ensure its own security and to prevent any potential encroachment by China. China, on the other hand, has been seeking to increase its influence in the region, and its growing economic and military power presents a challenge to India's traditional dominance. Bhutan has carefully navigated this complex geopolitical landscape, maintaining close ties with India while also seeking to develop its own relations with China. This delicate balancing act requires skillful diplomacy and a clear understanding of its own strategic interests.

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To further understand the depth of the India-Bhutan relationship, it's important to delve into the key terms and organizations that shape their interactions. The Friendship Treaty, as previously discussed, is the overarching legal framework. However, several other key terms and concepts are also relevant. "Gross National Happiness (GNH)" is a unique development philosophy adopted by Bhutan, which emphasizes the importance of well-being and happiness over purely economic indicators. India has supported Bhutan's GNH-based development approach, recognizing the importance of holistic and sustainable development. "Look East Policy" (now Act East Policy) is an Indian foreign policy initiative that aims to strengthen ties with countries in Southeast Asia and the broader Indo-Pacific region. Bhutan is an important partner in this policy, as it provides a land bridge to Southeast Asia and serves as a gateway for trade and investment.

Several organizations play key roles in facilitating cooperation between India and Bhutan. The Ministry of External Affairs (MEA) in India is responsible for managing India's foreign relations, including its relationship with Bhutan. The MEA provides policy guidance, allocates resources, and coordinates various initiatives to promote bilateral cooperation. The Indian Embassy in Thimphu serves as India's diplomatic mission in Bhutan, representing India's interests and facilitating communication between the two governments. The Royal Bhutanese Embassy in New Delhi serves a similar function for Bhutan in India. The Bhutanese government, through its various ministries and agencies, is responsible for implementing development projects and coordinating with India on various initiatives.

The legal frameworks governing the India-Bhutan relationship extend beyond the Friendship Treaty. Several other agreements and protocols cover specific areas of cooperation, such as trade, investment, and security. These agreements provide a legal basis for cooperation and ensure that activities are conducted in a transparent and predictable manner. The processes and procedures for implementing these agreements typically involve consultations between the two governments, followed by the signing of formal agreements and the establishment of joint working groups to oversee implementation.

Historically, India has consistently supported Bhutan's sovereignty and territorial integrity, particularly during times of regional conflict. This unwavering support has reinforced Bhutan's trust in India as a reliable partner and has contributed to the stability of the region. During the 1962 Sino-Indian War, India provided security assistance to Bhutan, helping to protect its borders from any potential incursions. In the 1971 Indo-Pakistani War, India again stood by Bhutan, ensuring its security and stability. These historical precedents demonstrate the long-standing commitment of India to Bhutan's security and well-being.

Examining the stakeholder positions reveals the underlying interests and motivations driving the India-Bhutan relationship. India's official position is that it is committed to supporting Bhutan's economic development and security. This commitment is driven by several underlying interests. First, India seeks to maintain regional stability and prevent any potential instability in Bhutan, which could have spillover effects on India's own security. Second, India is concerned about countering Chinese influence in the region and ensuring that Bhutan remains aligned with its strategic interests. Third, India is interested in accessing Bhutan's hydropower resources, which are a valuable source of clean and renewable energy. To achieve these objectives, India provides financial assistance to Bhutan, develops infrastructure projects, and offers security guarantees.

Bhutan, on the other hand, values its close relationship with India and seeks continued support for its development. This is driven by several underlying interests. First, Bhutan needs economic assistance from India to achieve its development goals and improve the living standards of its citizens. Second, Bhutan seeks to maintain its sovereignty and independence, and it relies on India's support to counter any potential threats to its security. Third, Bhutan is interested in maintaining regional stability and preventing any conflicts that could disrupt its development. To achieve these objectives, Bhutan cooperates with India on security matters, promotes trade and investment, and participates in regional forums.

The broader implications of the India-Bhutan relationship are far-reaching, affecting various aspects of both countries and the region as a whole. Politically, the relationship strengthens bilateral ties and reinforces India's position as a key partner in the region. This enhances India's diplomatic influence in South Asia and allows it to play a more active role in regional affairs. Economically, the relationship promotes economic growth in Bhutan and strengthens trade relations between the two countries. The hydropower projects, in particular, are a major source of revenue for Bhutan and contribute to India's energy security. Security-wise, the relationship contributes to regional security and stability by preventing conflicts and promoting cooperation on security matters. However, it's crucial to acknowledge that hydropower projects can have environmental impacts that require careful management to mitigate any negative consequences.

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Several ongoing issues and historical connections further shape the India-Bhutan relationship. The evolving dynamics of India-China relations have a significant impact on Bhutan, as it navigates its relationship with both countries. Regional security concerns, particularly in the context of the Indo-Pacific strategy, also influence the relationship, as India seeks to strengthen its security ties with Bhutan to counter any potential threats. Climate change and its effects on hydropower resources are another important issue, as both countries need to adapt to the changing climate and ensure the sustainable management of water resources.

Historically, India has played a crucial role in Bhutan's modernization and development since the 1960s. This long-standing commitment has built trust and goodwill between the two countries and has laid the foundation for the strong relationship that exists today. The historical and cultural ties between the two countries also contribute to the strength of the relationship, as they share many common traditions and values.

Looking ahead, the future of the India-Bhutan relationship is bright, with potential for continued cooperation on economic development, security, and regional issues. There is potential for increased investment in hydropower and other sectors, such as tourism and agriculture. Further strengthening of bilateral ties through high-level visits and dialogues will also be crucial to ensure that the relationship continues to thrive. The relationship between India and Bhutan is a model of successful bilateral cooperation, based on mutual trust, respect, and shared interests. It serves as an example of how two countries can work together to achieve their common goals and contribute to regional stability and prosperity. The continued strengthening of this relationship will be crucial for both countries in the years to come, as they face new challenges and opportunities in a rapidly changing world. The partnership is a testament to the power of diplomacy, cooperation, and a shared vision for a peaceful and prosperous future.

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