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China outreach to Bhutan poses fresh challenge to India
International relation
Important Facts:
Grounds for China Interest in Bhutan:
- Newly formed Bhutan government wants to diversify its economy where china can be prominent partner
- Reduce excessive dependence on hydropower sector which is climate sensitive and offer limited employment opportunities
- India accounts for 80% of Bhutan total trade
- China does not have any diplomatic relation with Bhutan
- Bhutan is the only Indian neighbor to have resisted so far to join Belt Road Initiative of China
India-Bhutan Relation:
- Newly elected Bhutan PM first overseas visit was to India
- India provided grant assistance of 4500Cr for Bhutan’s 12th 5YP
- India also provided transitional Trade Support Facility of 400Cr over 5year to strengthen bilateral trades and economic linkages
Way Forwards:
- India should be mindful of possible effects of china engagement in Bhutan in its territorial and boundary domain
- India should leverage good relation with China since Doklam issue 2017 to weed out any negotiation against India’s interest
