Source: The post is based on the article “India’s emerging challenge in Bhutan” published in “Business standard” on 3rd November 2023.
UPSC Syllabus Topic: GS Paper 2 International Relations – India and its neighborhood- relations.
News: The article discusses Bhutan’s Foreign Minister Tandi Dorji’s visit to China, marking progress in resolving border disputes and potentially normalizing relations between the two nations. India remains quiet but watchful, as these developments could impact the regional dynamics and its relationship with Bhutan.
What was the significance of Bhutan’s FM visit to China?
Historic visit: Tandi Dorji made a historic visit to China as Bhutan’s first foreign minister to do so, marking a potential turning point in long-standing border disputes.
Border Negotiations: The visit concluded the 25th round of border talks, moving closer to resolving territorial disagreements that have lasted for decades.
Cooperation Agreement: Bhutan and China signed a cooperation agreement to create a joint technical team responsible for the demarcation of disputed boundaries. Diplomatic Progress: The visit indicates a move towards normalizing diplomatic relations between Bhutan and China, which has been a cautious and gradual process over the years.
Economic Considerations: Bhutan’s economic engagement with China has grown, with Chinese exports to Bhutan increasing significantly from ₹200 crore in 2020 to ₹1,500 crore in 2022, reflecting a shift in Bhutan’s economic alliances.
Why is Bhutan changing its approach to China?
Strategic Pressures: Bhutan is responding to China’s new territorial claims and border activities, which include intrusions and settlement promotions in disputed areas, driving Bhutan to seek a resolution.
Economic Shifts: The growth in trade with China, from ₹200 crore to ₹1,500 crore in two years, and Bhutan’s increasing imports of Chinese capital goods and appliances, reflect a deeper economic bond influencing Bhutan’s foreign policy.
Societal Changes: With the challenge of a youth exodus and the need for economic reform, Bhutan views China as a crucial partner for development and stability.
Global Realignment: Bhutan acknowledges China’s significant place in global affairs and is realigning its diplomatic stance to match the changing geopolitical landscape.
How would it impact India?
Strategic Silence: India has remained quiet, suggesting it trusts Bhutan to respect mutual interests despite its new engagements with China.
Trade Dynamics: India’s significant trade with Bhutan, which includes importing 70% of Bhutan’s exports and has grown to ₹13,400 crore in 2022, might face changes with Bhutan’s increased economic ties with China.
Hydropower Projects: India’s involvement in Bhutan’s hydropower sector, critical for both economies, could be impacted by Bhutan’s economic diversification.
Security Cooperation: India trains Bhutanese soldiers, and any shift in Bhutan’s foreign policy might require adjustments in this longstanding cooperation.
For more information on India-Bhutan relations read here
Question for practice:
Discuss how Bhutan’s strengthening ties with China might affect its traditional relationship with India?
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