Celebration of India–Bhutan Ties

UPSC Syllabus Topic: GS Paper 2 -International Relations – India and its neighborhood- relations.

Introduction

Prime Minister Narendra Modi’s visit to Bhutan for Jigme Singye Wangchuck’s (previous king ) 70th birthday highlights the depth and continuity of India–Bhutan ties. The relationship has moved from the 1949 Treaty to the 2007 sovereign-equality framework, anchored by hydropower cooperation, development support, and trusted security coordination. Current priorities include Punatsangchhu II, evolving private financing, and broader links in connectivity, digital, education, and culture, while calmly managing boundary sensitivities.

Evolution of India–Bhutan Relations

1. From the 1949 treaty to a mature partnership: The 1949 Treaty of Friendship set early rules. Bhutan agreed to be “guided by India” in external affairs, while India pledged non-interference in Bhutan’s internal matters. Over time, nationalism in the Himalayas and shifting power balances made this model unsustainable.
2. Democratic transition and treaty revision in 2007: Under Jigme Singye Wangchuck, Bhutan moved towards a constitutional democracy. Jigme Khesar Namgyel Wangchuck now presides over the democratic system. In 2007, both sides revised the treaty. They removed the “guided by India” clause, affirmed independence, sovereignty, and territorial integrity, and pledged not to let territory be used against the other. This created sovereign equality with close cooperation.
3. Leadership maturity and strategic restraint: Leaders in both capitals showed pragmatism and restraint. India helped Bhutan build institutions, train armed forces, and develop the economy. New Delhi learned to avoid a heavy-handed approach. Hydropower cooperation since the 1960s became the central pillar of growth and a symbol of mutual benefit.
4. Stabilising leadership and security cooperation:

• Jigme Singye Wangchuck managed profound regional shifts during his reign (1972–2006). His guidance continues, as king Jigme Khesar Namgyel Wangchuck consults him on national security.
• In Operation All Clear (December 2003), the Royal Bhutan Army expelled Indian insurgent groups from Bhutanese jungles; India acted on its side of the border. This built deep security trust.

Various Areas of Cooperation

1. Hydropower as the anchor: Punatsangchhu II (1,020 MW) is a new milestone. It was built through government-to-government cooperation, with India providing initial capital to be repaid from power sales to India at competitive, periodically adjusted rates. This model lifted Bhutan’s revenues and incomes.
2. Evolving financing and private participation: Both sides now plan to tap private capital for future projects. Tata Power and Adani Power have taken up identified projects with Bhutanese partners. This diversifies funding and quickens implementation.

3.Trade & Economic Cooperation:

• Duty-Free Access: Bhutan enjoys free trade access to the Indian market for most of its exports.
• Development Assistance: India is Bhutan’s largest development partner. The Government of India provides significant financial grants and support for Bhutan’s Five-Year Plans, funding critical sectors like education, health, and infrastructure development.
• Currency Stability: The Indian Rupee (INR) is fully convertible with the Bhutanese Ngultrum (BTN), and India extends currency swap arrangements to Bhutan, ensuring financial stability during economic fluctuations.

4.Security & Strategic Cooperation:

• Border Security: India is responsible for training the Royal Bhutan Army (RBA). The RBA and Indian forces cooperate closely on border management.
• Doklam Standoff (2017): When the Chinese military attempted to build a road on the disputed Doklam plateau (claimed by Bhutan), Indian forces intervened based on the strategic implications for India’s own security (Siliguri Corridor or ‘Chicken’s Neck’). India’s intervention demonstrated its commitment to Bhutan’s territorial integrity.

5. Connectivity, digital, and education links: Ties now include cross-border railway plans, digital initiatives, and educational cooperation. The exposition of Buddha relics from Piprahwa in Bhutan reflects enduring spiritual bonds that reinforce societal trust.

Major Concerns Related to India–Bhutan Bilateral Relations

1. Managing the China factor: China’s rise reshapes the Himalayan landscape. Bhutan shares a long, disputed border with China and holds regular consultations to resolve it. Doklam remains sensitive. Bhutan seeks a peaceful settlement that protects Bhutan’s sovereignty and does not compromise India’s vital security interests.
2. Navigating asymmetry without mistrust: The two countries differ greatly in size and power. The challenge is to sustain equality in practice while expanding cooperation. Past experience shows that transparency, local priorities, and mutually beneficial security cooperation prevent friction.
3. Diversifying an economy: Hydropower revenues are a strength, yet over-reliance can be a risk. Bhutan pursues economic diversification and a wider international profile, cultivating partners like Japan, South Korea, and European nations, while deepening ties with India.
4. Connectivity & Infrastructure Gaps:

• Road, rail, and transport links between India and Bhutan remain limited, hampering further economic and strategic integration.
• Bhutan’s reservations about joining the BBIN Motor Vehicles Agreement due to sustainability and environmental concerns have slowed regional connectivity initiatives.

5. The “Big Brother” Syndrome: Due to India’s overwhelming size and historical role as protector, there is a persistent public sentiment (though small) in Bhutan that views India as overly dominant or a “Big Brother.”
6. Environmental & Social Sensitivities: Bhutan’s focus on Gross National Happiness and environmental preservation sometimes clashes with India’s infrastructure-led approach (e.g., highways, hydropower, BBIN MVA). There are concerns about the potential social impacts of rapid integration, such as migration and cultural change.
7. Border Management & Security: While the 699 km India-Bhutan border is largely peaceful, incidents of illegal crossings, militant hideouts, and smuggling necessitate close security cooperation.

Way Forward

1. Keep the 2007 treaty spirit central: Sustain sovereign equality, non-interference, and mutual security assurances. These norms protect trust as the regional environment shifts.
2. Deepen balanced growth: Advance new hydropower projects with mixed financing, strengthen grid integration, and pair energy with infrastructure, digital public goods, skills, and heritage conservation. This reduces concentration risk and widens Bhutan’s revenue base.
3. Institutionalise quiet security coordination: Maintain regular joint assessments on border issues and capacity-building for the Royal Bhutan Army. Keep crisis-prevention mechanisms active, especially around Doklam. Security cooperation should remain demand-driven and mutually agreed.
4. Strengthen people-centric linkages: Expand education exchanges, cultural circuits, and connectivity that bring direct benefits to citizens. Such links reinforce resilience against external shocks.

Conclusion

India–Bhutan ties rest on sovereign equality, shared security, and developmental partnership. Hydropower remains the anchor, with diversification, people-centric links, and quiet coordination on the China frontier sustaining trust. With steady leadership and calibrated financing, the partnership can deepen resilience, manage risks, and deliver mutual prosperity without friction.

For detailed information on India-Bhutan Relationship – Significance & Challenges read this article here

Question for practice:

Discuss how India–Bhutan relations have evolved over time and identify the key areas of cooperation and emerging challenges in the current regional context.

Source: The Hindu