Historical Context of Bhutan-India Relations
In the early 20th century, Bhutan's geopolitical landscape shifted significantly when it became a protected state of British India after the Chinese expedition to Tibet in 1910. The treaty signed during this period allowed the British Raj to oversee Bhutan’s foreign affairs and defense, a move that would lay the groundwork for Bhutan’s interactions with neighboring nations. This relationship continued to evolve, particularly after India gained independence in 1947, a moment that marked a pivotal change in the region's dynamics. Bhutan was quick to recognize India's newfound sovereignty, establishing itself as one of the first countries to do so.
In the years that followed, Bhutan and India fostered a cooperative partnership that was formalized through the signing of a standstill agreement and a treaty of friendship in 1949. These agreements were crucial in ensuring the continuity of diplomatic and economic relations between the two nations. The partnership was especially vital following the 1950 annexation of Tibet by the People's Republic of China, which raised concerns over territorial integrity for both Bhutan and India. Bhutan, located strategically in the eastern Himalayas, became increasingly important as it shared borders with both India and China.
Economic and Strategic Dimensions
The economic relationship between Bhutan and India is characterized by Bhutan's heavy reliance on its southern neighbor, which serves as its largest trading partner. India accounts for a staggering 98 percent of Bhutan's exports and 90 percent of its imports. This dependency underscores the strategic importance of their relationship in terms of trade and economic cooperation. Moreover, India's significant investments in Bhutan across various sectors, such as hydropower, education, and infrastructure, reflect a deep-rooted collaboration aimed at fostering development within Bhutan while simultaneously ensuring India’s influence in the region.
The geographical proximity of both nations—sharing a border that spans 605 kilometers—further cements their interdependence. Given the rising tensions in the region, particularly concerning China's increasing assertiveness, the Bhutan-India relationship has become even more crucial for national security. As both nations navigate the complexities of regional politics, the historical ties and shared interests they possess will likely dictate the future course of their bilateral interactions, with an emphasis on collaboration and mutual safeguard of interests.
By continuing to nurture their relationship, Bhutan and India not only solidify their positions against external pressures but also enhance their collective economic stability and security in a region marked by rapid changes and uncertainties.
Military Cooperation in Bhutan
India's military cooperation with Bhutan plays a crucial role in enhancing the security and defense capabilities of the Royal Bhutan Army (RBA). A significant aspect of this collaboration is the presence of a dedicated Indian Military Training Team (IMTRAT), consisting of around 2,000 personnel who are stationed in western Bhutan. This permanent deployment not only underscores India's commitment to Bhutan's security but also reflects the close ties the two nations share due to historical, geographical, and cultural ties.
The IMTRAT provides comprehensive training programs that cover various aspects of military operations, including infantry tactics, counter-insurgency, and disaster response management. This training is aimed at building the RBA's capabilities to effectively address both external and internal security challenges. The collaborative approach also ensures that the Bhutanese forces are well-prepared to handle any threats, thereby contributing to regional stability in the Himalayan region.
Moreover, aside from the training provided by IMTRAT, other units from the Indian Armed Forces regularly participate in joint exercises and operations with the Royal Bhutan Army. These engagements not only foster interoperability between the two forces but also strengthen the strategic partnership between India and Bhutan. Such initiatives are crucial for maintaining peace and security in the region, particularly given the complex geopolitical dynamics that include neighboring powers.
Overall, the military cooperation between India and Bhutan serves as a vital pillar of Bhutan's national defense while enhancing regional stability. This collaboration reflects a deep-rooted partnership based on mutual trust and shared interests, ensuring that both nations can navigate a rapidly evolving security landscape together.
The 1949 Treaty of Friendship between Bhutan and India, signed on 9 August, served as a crucial foundation for the relationship between the two nations. This treaty emphasized the importance of peace and mutual respect, stipulating non-interference in each other's domestic matters. Nonetheless, it also entrusted India with a significant role in guiding Bhutan's foreign policy, which implied a strong collaborative dynamic in international relations and defense matters. The economic and diplomatic framework established by this treaty facilitated not only free trade between Bhutan and India but also the establishment of extradition protocols, streamlining cooperative law enforcement efforts. Scholars debate the implications of this treaty, suggesting that it positioned Bhutan as a protected state, which retains sovereignty while benefiting from India's guidance in diplomacy.
Following the annexation of Tibet by Communist China, Bhutan and India found their bilateral ties deepening. This geopolitical shift underscored Bhutan’s strategic significance, prompting Indian Prime Minister Jawaharlal Nehru's visit to Bhutan in 1958, during which he reiterated India's unwavering commitment to Bhutan's independence. Nehru went as far as to assert in the Indian Parliament that any act of aggression towards Bhutan would be interpreted as an act of aggression against India, highlighting India’s security obligations and its role as a protector in the region. The rising tensions with China led to heightened concerns about Bhutan's sovereignty and security.
In light of these tensions, particularly after reports surfaced in August 1959 concerning China's ambitions to "liberate" Bhutan and Sikkim, India's defense posture towards Bhutan became increasingly robust. Nehru reiterated in the Lok Sabha that safeguarding Bhutan's territorial integrity was primarily the responsibility of the Indian government, reinforcing the notion of Bhutan as a dependable ally in India’s broader regional strategy. Consequently, India escalated its economic, military, and development assistance to Bhutan during this period, supporting the latter's efforts to modernize and enhance its national security. Bhutan's apprehensions regarding India's capacity to counteract potential Chinese aggression—especially in light of a simultaneous conflict with Pakistan—spurred discussions on defense collaboration and contingency planning.
Between 1973 and 1984, Bhutan and India engaged in rigorous border demarcation efforts, successfully resolving most disputes and solidifying mutual territorial boundaries. However, some areas continued to present challenges, particularly around the middle zone between Sarpang and Geylegphug, as well as along Bhutan's eastern frontier adjacent to India’s Arunachal Pradesh state. The border demarcation process was emblematic of the trust and cooperation developed between the two nations, even as it underscored the complexities of navigating regional dynamics amid border sensitivities. In this ongoing context, Bhutan’s relationship with India has evolved into one of mutual respect and interdependence, balancing its sovereignty with the security and economic benefits of its ties to a powerful neighbor.
Indo-Bhutanese Relations Since 1972
The relationship between India and Bhutan has remained strong and amicable since the signing of the Treaty of Friendship in 1949. However, by the early 1970s, the Bhutanese government recognized the need to renegotiate certain aspects of this treaty to bolster its sovereignty and independence on the global stage. During this period, Bhutan marked a significant shift in its foreign policy. By joining the United Nations in 1971 and recognizing Bangladesh not long after, Bhutan began to carve out a more independent role in international affairs. The signing of a new trade agreement in 1972 further solidified this trajectory, as it eliminated export duties for Bhutanese goods destined for third countries, enhancing the country’s economic independence.
The assertive shift in Bhutan's foreign policy culminated in its participation in the Non-Aligned Movement (NAM) summit in Havana, Cuba in 1979, where Bhutan took a notable stance by voting alongside China and several Southeast Asian nations on sensitive issues, such as the representation of Cambodia’s Khmer Rouge. This decision signified a distinct departure from complete alignment with India and reflected Bhutan's growing desire to navigate its foreign affairs autonomously. In contrast to Nepal's treaty with India, which has often triggered nationalistic sentiments and political controversies due to the presence of a significant Nepali diaspora in India, Bhutan’s relationship with India has remained largely unaffected by treaty debates, suggesting a unique dynamic shaped by mutual respect and cooperation.
In the early 2000s, Bhutan also took decisive steps to address security threats posed by insurgent groups operating within its borders. From 2003 to 2004, the Royal Bhutan Army embarked on military operations aimed at dismantling bases established by the United Liberation Front of Assam (ULFA), an insurgent group from India. This operation was crucial not only for India, which faced significant challenges from insurgent groups launching attacks from Bhutanese territory, but also for Bhutan itself, as it sought to maintain stability and security within its own borders. These military actions further demonstrated Bhutan's commitment to safeguarding its sovereignty and reinforcing cooperation with India, which remains a primary ally in the region. Overall, the evolving nature of Indo-Bhutanese relations post-1972 illustrates a delicate balance between asserting national autonomy and upholding a longstanding partnership grounded in friendship and mutual interests.
India's Treaty with Bhutan (2007)
In 2007, India and Bhutan took significant steps to redefine their bilateral relationship by renegotiating the original treaty signed in 1949. The new Treaty of Friendship was a landmark agreement that sought to modernize the relationship between the two nations. One of the central reforms was the elimination of the previous clause that required Bhutan to seek India's guidance on foreign policy decisions. This change was pivotal, as it allowed Bhutan to assert a greater degree of sovereignty and independence in its international relations. Additionally, the revised treaty removed the previous stipulation necessitating Bhutan to seek India's permission for arms imports, an important move towards enhancing Bhutan's autonomy in defense matters.
Political Support and Democratic Transition
The signing of the new treaty coincided with a pivotal moment in Bhutan's political landscape. In 2008, Indian Prime Minister Dr. Manmohan Singh made a historic visit to Bhutan during which he openly expressed India's steadfast support for Bhutan's ongoing transition to democracy. This transition was marked by Bhutan’s first democratic elections, setting a precedent for democratic governance in a region where monarchy had prevailed for centuries. India's backing was crucial, as it reassured the Bhutanese populace of continued friendship and cooperation during this transformative period.
Economic Collaboration and Trade Framework
Apart from political dimensions, the treaty also strengthened economic ties between the two nations. India facilitated 16 entry and exit points for Bhutanese trade with the outside world, a gesture aimed at boosting Bhutan’s economy while ensuring it has the capacity to engage in international trade. Notably, the only exception to this trade framework was China, highlighting the sensitive geopolitical dynamics surrounding Bhutan's foreign relationships. Moreover, as part of the ongoing cooperation, India committed to developing and importing a significant 10,000 megawatts of electricity from Bhutan by 2021. This agreement not only solidified economic ties but also positioned Bhutan as a potential powerhouse for renewable energy in the region, further enhancing its importance in South Asian geopolitics.
In summary, the 2007 Treaty of Friendship between India and Bhutan marked a crucial shift in their relationship, enabling Bhutan to navigate its foreign policy with greater independence while still relying on India as a key ally. The treaty laid the foundation for economic collaboration and signaled a commitment to Bhutan's transition towards democratization, establishing a robust framework for mutual support and cooperation.
Support Overview
Financial assistance from India to Bhutan has been a cornerstone of the bilateral relationship between the two nations. In the fiscal year of 2012-13, India's budgetary support amounted to US$600 million, which translates to approximately ₹30 billion. This funding has shown a consistent upward trajectory over the years, culminating in an impressive figure of US$985 million (equivalent to ₹61.60 billion) in 2015-16. This substantial increase has positioned Bhutan as the largest recipient of foreign aid from India, highlighting the strategic and friendly ties that bind the two countries.
In August 2013, during a diplomatic visit to New Delhi, Bhutan's Prime Minister Tshering Tobgay made a significant request for an additional aid package of INR 54 billion, which was approximately US$819 million at the time. The proposed allocation indicated a keen focus on developmental initiatives, with a considerable portion—INR 45 billion—designated for Bhutan's 11th Five-Year Plan. Furthermore, this package included INR 4 billion set aside for the completion of projects pending from the previous planning cycle, and INR 5 billion dedicated to an economic stimulus initiative intended to counteract Bhutan's sluggish economic pace.
Hydropower projects represent a major facet of India's investment in Bhutan. Currently, India operates several projects totaling 1,416 MW of capacity in Bhutan, with an additional three projects under construction that will add 2,129 MW to this capacity. This collaboration not only bolsters Bhutan's infrastructure but also enhances energy security and economic development. In November 2018, Bhutan's third Prime Minister, Lotay Tshering, secured a significant aid package of around Nu.45 billion (approximately $635 million) during his first official visit to India, aimed at the country's 12th Five-Year Plan. A critical topic of discussion involved the tariff rate for the Mangdechhu Hydropower Plant, where Tshering advocated for a higher tariff rate of Nu.4.27. However, after negotiations, a compromise was reached and the tariff was settled at Nu.4.12. In addition, the Bhutanese government was allocated Nu.4 billion to support trade facilitation and strengthen economic linkages, enhancing the prospects for growth and cooperation between the two neighboring countries.
Significance of Modi's Visit to Bhutan
In the context of 21st-century diplomacy, Indian Prime Minister Narendra Modi's choice to make Bhutan his first international destination in 2014 was highly symbolic and strategically significant. This inaugural visit not only underscored the close relationship between the two nations but also highlighted India's emphasis on building stronger ties with its neighboring countries. The visit was a clear indication of Modi's "Neighborhood First" policy, aimed at fostering collaborative relationships in South Asia. During his time in Bhutan, Modi inaugurated the Supreme Court Complex, a monumental marker of India's assistance in enhancing Bhutan’s judicial infrastructure, while also making pledges for support in the information technology and digital sectors.
The visit was prompted by an invitation from King Jigme Khesar Namgyel Wangchuck and Prime Minister Tshering Tobgay, showcasing the cordial ties and mutual respect between the leadership of both countries. It was characterized by the media as a "charm offensive," reflecting Modi's intent to strengthen bilateral relations in light of China's rising influence in Bhutan, particularly as Bhutan and China had begun formalizing diplomatic relations around this time. Modi's negotiation efforts included a focus on enhancing business partnerships, specifically through an agreement on hydroelectric projects, which are vital for Bhutan’s economy and energy requirements.
Modi articulated that Bhutan was a "natural choice" for his first foreign trip, emphasizing the "unique and special relationship" shared by India and Bhutan, built on mutual trust, cooperation, and cultural ties. His delegation included prominent figures such as Foreign Minister Sushma Swaraj, National Security Adviser Ajit Doval, and Foreign Secretary Sujatha Singh, all crucial for discussing sensitive regional issues such as insurgency in Northeast India and the broader implications of Chinese policies in the region.
In a poignant acknowledgment of their relationship, the King of Bhutan honored Prime Minister Modi in 2024 with Bhutan's highest civilian award, marking a historic recognition as it was the first time the award was conferred upon a non-Bhutanese. This gesture spoke volumes about the enduring partnership and the significance of continued cooperation in various realms, including economic development, security, and cultural exchanges. The ongoing relationship between India and Bhutan continues to evolve, indicating a shared vision for peace and stability in South Asia and beyond.