Context:
Recently, India and Bhutan agreed to discuss new routes of Regional Connectivity, and upgrade border and immigration posts, in order to enhance trade and Partnership during Bhutan King’s India visit.
Relevance:
GS II: International Relations
Dimensions of the Article:
- Key Highlights of the Discussion between India and Bhutan
- Significance of Bhutan for India
- Challenges in India-Bhutan Relations
Key Highlights of the Discussion between India and Bhutan:
Regional Connectivity:
- Agreement to explore new routes of regional connectivity, including a 58 km cross-border rail link between Gelephu (Bhutan) and Kokrajhar (Assam).
- Plans to investigate a second 18 km rail link between Samtse (Bhutan) and Banarhat (West Bengal).
- Discussions on upgrading border and immigration posts to support these projects.
Trade Facilitation:
- Facilitating trade by extending Bhutanese trade items from Haldibari (West Bengal) to Chilahati (Bangladesh) through Indian territory.
- Designation of the Darranga-Samdrup Jongkhar border crossing as an immigration check post to promote tourism and enhance connectivity.
Trade Infrastructure:
- Plans to upgrade the Dadgiri land customs station (Assam) to a modernized “Integrated Check Post.”
- Support for Bhutan’s Special Economic Zone (SEZ) project, with development efforts on the Bhutanese side at Gelephu.
Socio-economic Development:
- India’s commitment to continue supporting Bhutan’s socio-economic development, with a focus on the 13th Five-Year Plan.
- Recognition of India’s substantial contribution to Bhutan’s 12th Five-Year Plan, constituting 73% of the external grant component.
G20 Summit and Global South Priorities:
- Bhutan’s commendation of India’s successful organization of the G20 Summit and its role in fostering consensus and constructive decisions, as outlined in the Delhi Declaration.
- Acknowledgment of India’s dedication to integrating the interests and priorities of Global South countries in G20 deliberations.
Hydropower and Energy Partnership:
- Progress noted on the 1020 MW Punatsangchhu-II hydropower project, expected to commission in 2024.
- Agreement to expand the India-Bhutan Energy Partnership to include non-hydro renewables, solar energy, green initiatives related to hydrogen, and e-mobility.
- India’s assurance of technical and financial support for projects in these areas.
Operation All Clear:
- Recollection of Operation All Clear, a military operation conducted by the Royal Bhutan Army in 2003 against Assam separatist insurgent groups in southern Bhutan.
Significance of Bhutan for India:
- Strategic Buffer State: Bhutan’s location between India and China serves as a strategic buffer state, enhancing India’s security interests.
- Sovereignty and Territorial Integrity: India’s assistance in defense, infrastructure, and communication has contributed to maintaining Bhutan’s sovereignty and territorial integrity.
- Border Infrastructure Development: India’s support in building border infrastructure, including roads and bridges, has strengthened Bhutan’s defense capabilities and ensured territorial integrity.
- Doklam Standoff Support: During the Doklam standoff with China in 2017, Bhutan played a crucial role by allowing Indian troops to enter its territory to resist Chinese incursions.
- Trading Partner: India is Bhutan’s largest trading partner and primary export destination.
- Hydropower Development: Bhutan’s hydropower potential is a significant revenue source, with India’s assistance in developing hydropower projects.
- Financial Assistance: India provides financial assistance for Bhutan’s development projects.
- Cultural Ties: Strong cultural ties exist due to shared Buddhist traditions, with India helping preserve Bhutan’s cultural heritage, and Bhutanese students studying in India.
- Environmental Stewardship: Bhutan’s commitment to being carbon-neutral aligns with India’s efforts to promote environmental sustainability. India supports Bhutan in renewable energy, forest conservation, and sustainable tourism, contributing to Bhutan’s carbon-neutral goals.
Challenges in India-Bhutan Relations:
China’s Increasing Presence:
- China’s growing economic and military influence in Bhutan, particularly along the disputed border, poses a challenge to India’s strategic interests in Bhutan.
Border Incursions:
- Incidents of border incursions by Chinese forces along the India-Bhutan border have raised concerns.
- The Doklam standoff in 2017 was a significant flashpoint that could strain India-Bhutan relations if similar disputes escalate.
Hydropower Projects Concerns:
- While India has been a major partner in Bhutan’s hydropower sector, there have been concerns in Bhutan regarding the terms of some hydropower projects, seen as too favorable to India.
- Public opposition in Bhutan to Indian involvement in the sector has arisen.
Trade Imbalance:
- India is Bhutan’s largest trading partner, but Bhutan faces a trade imbalance, importing more from India than it exports.
- Bhutan seeks greater access to the Indian market to reduce the trade deficit.
-Source: The Hindu
