Source: The post on India-Bhutan relations is based on the article “Closer together – India and Bhutan can change the development story of the region” published in The Hindu on 8th November 2023.
UPSC Syllabus Topic: GS Paper 2 International Relations – India and its neighbourhood – relations.
News: This article discusses the outcomes of the recent meeting of India’s Prime Minister and Bhutan’s King Wangchuck.
A detailed article on India-Bhutan relations can be read here.
What are the various development initiatives being planned by India and Bhutan?
Rail Links: Discussions are ongoing for establishing rail connections between Kokrajhar in Assam and Gelephu in Bhutan; and between Banarhat (West Bengal) and Samtse (Bhutan).
Infrastructure Upgrades: Checkpoints along the India-Bhutan border are being upgraded to facilitate easier trade and movement.
Special Economic Zone: Bhutan plans to set up a Special Economic Zone at Bhutan’s southern border with Assam to drive growth and investment.
Airport Development: A new airport at Gelephu is proposed to increase accessibility and promote economic development.
Energy Integration: An ‘energy exchange’ is planned to share hydropower resources between Bhutan, Nepal, Bangladesh, and Sri Lanka, promoting intra-regional growth.
What are the implications of these initiatives?
Regional Development: The infrastructure projects like rail links could transform the economies of West Bengal, Bhutan’s southern and eastern districts, and northern Bangladesh.
Economic Diversification: Bhutan’s reliance on hydropower and tourism might reduce with the proposed Special Economic Zone and new trade routes.
Reduced Emigration: Enhanced job opportunities from these initiatives could stem the outflow of Bhutan’s educated youth and professionals.
Increased Exports: The Preferential Trade Agreement with Bangladesh may raise the export of Bhutanese goods.
Energy Distribution: The energy exchange program aims to distribute Bhutanese and Nepali hydropower across the region, increasing revenues and energy security.
Strategic Stability: The projects serve as a strategic counter to China’s influence and help secure India’s northeastern corridor, contributing to regional stability.
Question for practice:
Discuss the potential impact of the recent development initiatives agreed upon by India and Bhutan on bilateral relations between the two countries.
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