7 PM | Something special: On Narendra Modi’s Bhutan visit | 20th August, 2019

Context: India and Bhutan relations.

More in news:

• Prime Minister of India, Narendra Modi, made a State Visit to the Kingdom of Bhutan from 17-18 August 2019, at the invitation of the Prime Minister of Bhutan. This was among the first bilateral visits by Prime Minister Modi after assuming office for the second time in May 2019.
• 10 Memoranda of Understanding (MOU)/Agreement were exchanged during the visit.

India-Bhutan Relation:

• Diplomatic relations between India and Bhutan were established in 1968 with the appointment of a resident representative of India in Thimphu.
• Before this our relations with Bhutan were looked after by our Political Officer in Sikkim.
• The basic framework of India- Bhutan bilateral relations was the Treaty of Friendship and Cooperation signed in 1949 between the two countries, which was revised in February 2007.
• The India-Bhutan Friendship Treaty not only reflects the contemporary nature of our relationship but also lays the foundation for their future development in the 21st century.
• The development cooperation between the two countries can be effectively divided into three significant waves:
  • The first wave (1960s–1970s) focused on building the social and physical infrastructure.
  • The second wave (1980s–1990s) saw substantive efforts towards democratisation and decentralisation.
  • The third wave of the relationship focused on developing hydel projects, which has now expanded into other areas such as information technology, disaster risk management, education and research cooperation.

Trade relations:

• The India-Bhutan Trade and Transit Agreement 1972 established a free-trade regime between the two countries.
• The Agreement also provides for duty-free transit of Bhutanese exports to third countries.
• In 2018, bilateral trade reached Rs. 9228 Crore.
• Imports from India accounted for 84% of Bhutan’s total imports. Bhutan’s exports to India constituted 78 % of its total exports.

Security relation:

• Both countries share open border and one of the most peaceful border in the world.
• Both countries have conducted joint operations against insurgents. One such example was in 2003 to drive out ULFA rebels.
• More recently, India’s stand against Chinese troops on the Doklam plateau. 

Cultural and Educational Cooperation:

• India Bhutan foundation was established in 2003 for improving people to people cooperation in the areas of culture, education and environment protection
• India has provided scholarships for Bhutanese students studying in Undergraduate and Postgraduate courses in Indian institutions

Outcome of recent visit:

• The two Prime Ministers formally inaugurated the recently completed 720 MW Mangdechhu Hydroelectric Plant. The ongoing projects are Punatsangchhu-1, Punatsangchhu-2 and Kholongchhu Hydroelectric Plants.
• Prime Minister launched the facility of use of Indian-issued RuPay cards in Bhutan, which would greatly facilitate Indian travellers to Bhutan by reducing the need to carry cash, while at the same time boosting the Bhutanese economy and further integrating the economies of both countries.
• Inaugurated the Ground Earth Station of the South Asian Satellite in Thimphu, which was constructed with the support of the Indian Space Research Organization (ISRO). 
• Both sides agreed to collaborate on the joint development of a small satellite for Bhutan. It was also agreed to develop a geoportal system for Bhutan for natural resources and disaster management, using remote sensing and geo-spatial data.
• Prime Minister of India also inaugurated the inter-connection between India’s National Knowledge Network and Bhutan’s Research and Education Network. Both sides noted that this link-up would create an information highway, encouraging greater interaction among the universities and students of both sides.

Memoranda of Understanding (MOU)/Agreement exchanged during the visit:

• MoU between Department of Information Technology and Telecom of RGoB and Indian Space Research Organisation, on establishment of Satcom Network for the utilization of South Asia Satellite.
• MoU for peering arrangement between National Knowledge Network (NKN) and Druk Research and Education Network (DrukREN) of Bhutan.
• MoU between Aircraft Accident Investigation Bureau (AAIB), India, and Air Accident Investigation Unit (AAIU), Bhutan, on aircraft accident and incident investigation.
• Four MoUs on enhancement of Academic Exchanges and STEM cooperation between the Royal University of Bhutan, and IITs at Kanpur, Delhi and Mumbai and NIT Silchar.
• MoU between National Law School of India University, Bangalore and JigmeSingyeWangchuck School of Law, Thimphu on enhancing relations between the two parties in the areas of legal education and research.
• MoU between Bhutan National Legal Institute and National Judicial Academy, Bhopal, on cooperation in judicial education and mutual exchanges.
• Power Purchase Agreement for Mangdechhu Hydro-electric Project between PTC India Ltd and Druk Green Power Corporation, Bhutan.

Areas of Concern:

• India’s sudden change in its power purchasing policy, rigid rates and refusal to allow Bhutan to join the national power grid and trade with third countries like Bangladesh has caused some strains in the relations.
• Earlier generations of Bhutanese students never looked beyond India, but in recent years young Bhutanese have shown a preference for education destinations in Australia, Singapore and Thailand. 
• The Motor Vehicles Agreement that was signed in 2015 involving Bangladesh, Bhutan, India and Nepal (BBIN) was blocked by Bhutan’s upper house citing environmental concerns.

Conclusion:India and Bhutan have shared a special relationship since 1950s. To keep the good relations intact India will have to remain alert to strategic powers which are courting Bhutan assiduously, as is evident from the high-level visits from China and the U.S. In a world of growing options, it remains in India’s and Bhutan’s best interests to make each other’s concerns a top priority.

Source: https://www.thehindu.com/opinion/editorial/something-special-on-narendra-modis-bhutan-visit/article29161046.ece