Contents
Introduction
Despite asymmetry—India’s economy nearly 250 times larger than Bhutan’s (World Bank 2023)—their ties remain conflict-free. The 2007 Treaty revision upheld sovereignty, showing how sensitivity, development partnership, and mutual trust shape durable regional diplomacy.
India-Bhutan: A Relationship Built on Trust, Not Dominance
Unlike India’s relations with some neighbours (Nepal, Maldives, Sri Lanka) that often oscillate between engagement and suspicion, India-Bhutan ties exemplify respectful asymmetry.
Key pillars:
- Sovereign equality and non-interference: 1949 Treaty clause requiring Bhutan to be “guided by India” was removed in 2007. The revised treaty affirms “mutual respect for independence, sovereignty, and territorial integrity.”
- Security cooperation without coercion: India assists Bhutan in defence training and border management. In Doklam 2017, India intervened to protect Bhutanese sovereignty and its own strategic interests after Bhutan sought support.
- Development partnership rooted in Bhutan’s priorities: India finances major hydropower projects (Tala, Chukha, Punatsangchhu). Hydropower contributes 17% to Bhutan’s GDP and 30% to government revenues (Royal Monetary Authority 2022). Power import from Bhutan helps India meet clean energy targets (SDG-7).
- Soft power and cultural connect: Shared Buddhist heritage, scholars’ exchanges, student scholarships. Exposition of Buddha relics from India in Bhutan (2024) reinforces civilizational diplomacy.
This aligns with India’s neighbourhood policy pillars: “Security and Growth for All in the Region (SAGAR)” and “Neighbourhood First.”
Why this partnership avoids mistrust? Lessons for South Asia
- Transparency and demand-driven development: Projects are implemented based on Bhutan’s priorities—not Indian conditionalities—reducing suspicion of exploitation.
- No interference in domestic politics: Unlike in Nepal or Maldives, India refrains from overt involvement in Bhutanese internal decisions.
- Managing asymmetry with emotional intelligence: India practices what scholars call “asymmetry with sensitivity”—avoiding the temptation of big-power assertiveness.
- Mutually beneficial interdependence: Bhutan earns revenue through power exports. India receives clean renewable energy.
- Shared strategic perspective: Both remain cautious of China’s assertiveness in the Himalayas and prioritise territorial sovereignty.
Comparison with India’s relations with other neighbours
| Parameter | Bhutan (success case) | Nepal / Sri Lanka / Maldives (challenges) |
| Perception of India | Partner | Big brother |
| Development cooperation | Demand-driven | Viewed as politically motivated |
| Border disputes | Sensibly managed (Doklam) | Often politicised |
| Strategic trust | High | Volatile |
Bhutan shows that trust grows when power is exercised with restraint.
Way Forward
- Diversify connectivity: rail links, digital payments integration, trade corridors.
- Expand cooperation on climate and hydropower, making Bhutan a green energy hub.
- Encourage people-centric diplomacy through education and tourism.
Conclusion
As Joseph Nye notes, “Power with others is better than power over others.” India-Bhutan ties illustrate respectful asymmetry, where trust, sovereignty, and shared values produce lasting regional harmony.


