Indo-Bhutan Ties: A Strong Partnership Amidst Challenges

Prime Minister Narendra Modi’s upcoming visit this week to Bhutan marks yet another milestone in the lasting relationship between the two nations. Despite occasional hurdles, the bond between India and Bhutan continues to thrive, strengthened by shared values, strategic cooperation, and a commitment to mutual prosperity.

The invitation extended by Bhutan’s Prime Minister Dasho Tshering Tobgay, on behalf of the King of Bhutan, highlights the depth of camaraderie between the two leaders. Prime Minister Modi’s acceptance of the invitation signifies the importance both nations attach to nurturing their friendship.

This forthcoming visit will be Prime Minister Modi’s third to Bhutan since assuming office in 2014, underlining the significance India places on its relations with its Himalayan neighbour having a population of around eight Lakh.

The previous visits of the Prime Minister (June 15-16, 2014 and August 17-18, 2019) have not only reinforced diplomatic ties but also laid the groundwork for robust cooperation in various sectors including foreign policy, defence, and commerce. During his past visits, Prime Minister Modi expressed India’s commitment to Bhutan’s socio-economic development, emphasizing the lasting bond between the two countries. His speeches resonated with Bhutanese citizens, further solidifying the affinity between the two nations.

Prime Minister Modi’s exceptional address to the Bhutanese Parliament during his first visit to Thimphu is still remembered by the local population (his first visit as Prime Minister outside India) and demonstrates the mutual respect and admiration shared between the two nations.

In return, Bhutan has warmly welcomed Prime Minister Modi, recognizing India’s pivotal role in its development journey and the visit becomes more important as the new government of Bhutan under Prime Minister Tobgay has just begun its five-year rule in the Himalayan Kingdom.

The recent meeting on March 15, 2024, between Prime Minister Modi and his Bhutanese counterpart, Prime Minister Tobgay (on his first visit outside Bhutan in his second tenure as PM) had wide discussions ranging from infrastructure development to energy cooperation, stabilising the economy of the country, highlight the depth and multifaceted nature of the Indo-Bhutan bilateral relationship.

Of particular significance is Bhutan’s announcement of a substantial economic stimulus plan, with India’s support, aimed at bolstering the country’s economy.

Moreover, the successful implementation of various development projects under Bhutan’s 12th Five-Year Plans, coupled with ongoing cooperation initiatives, augurs well for the future trajectory of bilateral relations.

Looking ahead, India’s plans for a more substantial assistance package for Bhutan’s 13th Five-Year Plan are going to be on more development and prosperity, when the global economy is facing the challenges of the two major ongoing conflicts and depression in the economy.

The recent India-Bhutan Development Cooperation Talk that followed the Foreign Secretary’s visit to Bhutan and the King of Bhutan’s visit to India early this year exemplify the commitment of both nations to advancing shared goals of prosperity and progress.

The foundation of the enduring Indo-Bhutan relationship rests upon the 1949 Treaty of Friendship, which designates India as Bhutan’s de facto security guarantor. This treaty, alongside subsequent agreements such as the 2007 treaty, reinforces the close cooperation between the two nations.
India’s Concerns Over China’s Growing Presence in Bhutan

The increasing presence and influence of China in Bhutan have ignited concerns within India’s strategic circles, particularly regarding the implications for its vulnerable Siliguri Corridor.

The Chinese construction of military roads through Bhutanese territory and the reported settlement of Chinese nationals on encroached land have aggravated these apprehensions, opening a new front on India’s most sensitive point.

The Siliguri Corridor, also known as the “Chicken’s Neck,” is a narrow strip of land merely 22 kilometres wide at its narrowest point, squeezed between China, Nepal, Bhutan, and Bangladesh.
China’s activities in Bhutan, including the establishment of settlements, roads, and military facilities on disputed territory, pose a challenge to India’s security interests in the region.

These encroachments, once established, may prove difficult to reverse, even if a border settlement is eventually reached between Bhutan and China.

India’s opposition to any cession of Bhutanese territory to China, particularly around the Doklam Plateau, adds another layer of complexity to the situation. Bhutan’s former Prime Minister, Lotay Tshering, last year in his statement to the media that the need for trilateral demarcation of frontiers involving Bhutan, China, and India was not taken well with New Delhi.

In October 2021, a Memorandum of Understanding (MoU) outlining a ‘Three-Step Roadmap’ was signed to expedite boundary talks between China and Bhutan. There was a lot of speculation and concern.

Border negotiations between China and Bhutan have been ongoing since 1984, with nearly 24 rounds of talks conducted before the signing of the MoU in 2021. The talks continue. The disputed areas, primarily located in the western and northern parts of Bhutan, span approximately 5,000 square kilometres, adding to the complexity of resolving territorial disputes.

Despite the absence of formal diplomatic relations between China and Bhutan, Beijing’s coordination with Thimphu via the Chinese Embassy in New Delhi raises eyebrows in Indian strategic circles.

India’s concerns are particularly heightened by the positioning of Chinese forces around the Doklam Tri-Junction, where Bhutan, China, and India converge. The 2017 military face-off between the Indian Army and China’s People’s Liberation Army (PLA) at the Doklam Plateau underscored the gravity of the situation, lasting for 73 tense days and further amplifying India’s apprehensions regarding China’s intentions in the region.

Strategic Significance of Bhutan for India

Bhutan holds a pivotal position in India’s strategic calculus, with the two nations sharing a unique and time-tested relationship spanning over six decades. With a border stretching over 699 kilometres, India and Bhutan’s ties have only deepened since India’s independence, particularly in the realms of defence and security.

India and Bhutan enjoy robust strategic and defence ties, dating back to the signing of a friendship treaty in 1949. This treaty, alongside subsequent agreements such as the 2007 treaty, reinforces the close cooperation between the two nations on matters of mutual interest and security.

Moreover, India’s role as Bhutan’s foremost trading partner and largest source of investments further solidifies the bilateral relationship. India’s support during the COVID-19 pandemic, including the provision of Covid shield vaccine consignments and the opening of new trade routes and new agreements with Assam State further strengthens the trust and cooperation between the two countries.

India’s unwavering commitment to Bhutan’s development is vividly demonstrated through its substantial financial assistance. Earmarked funds totalling ₹2,398.97 crore for the year 2024-25 stand as a testament to India’s steadfast support, with Bhutan emerging as the primary beneficiary of Indian aid.

Furthermore, as Bhutan embarks on its 13th Five-Year Plan, India’s contributions are poised to expand even further. Anticipated announcements during the upcoming visit of the Prime Minister to Bhutan may include additional Project Tied Assistance and High Impact Community Development Projects.

As Prime Minister Modi prepares for his upcoming visit to Bhutan, it symbolizes the enduring friendship between the two nations.

Despite facing challenges and external pressures, the Indo-Bhutan relationship stands as a beacon of strategic partnership built on mutual trust, respect, and cooperation.

This visit reaffirms the shared determination of India and Bhutan to deepen their partnership for the mutual benefit of both nations, even amidst regional challenges.

The author is National Editor,  Greater Kashmir