On India-Bhutan Relations – Closer together

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 8^th 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.