India-Bhutan Relations

SYLLABUS: GS 2> International relations   >   India and Neighbours   >   India- Nepal

REFERENCE NEWS:

• Tshering Tobgay, leading the People's Democratic Party (PDP), won Bhutan's recent election, securing a second term as Prime Minister. His party won 30 of the 47 seats in the election held on January 9, 2024.The election results have been closely observed by neighboring countries, particularly China and India, due to Bhutan's strategic location and contested border zones??.
• The newly-elected Tobgay is very much considered to be pro-India and thus gives a major boost to India’s strategic concerns in the region. Indian Prime Minister Narendra Modi congratulated Tobgay for his victory on Twitter (now X).

BACKGROUND:

• India and Bhutan share unique and exemplary bilateral relations, which are based on mutual trust, goodwill and understanding. 
• Formal diplomatic relations between India and Bhutan were established in 1968. 
• The basic framework of India-Bhutan relations is the Treaty of Friendship and Cooperation signed in 1949 between the two countries, which was renewed in February 2007.

AREAS OF COOPERATION:

 WHY BHUTAN IS IMPORTANT FOR INDIA:

• Geopolitical Position: 
  • Bhutan's location is strategically important for India. It acts as a buffer state between India and China, particularly in the region of the Doklam plateau, which has been a point of military tension.
• Hydroelectric Power: 
  • Bhutan has vast hydroelectric potential, and India has invested heavily in this sector. The electricity generated is exported to India, helping to meet its energy demands and contributing to Bhutan's economy.
• Security Concerns: 
  • India and Bhutan have a strong military and security relationship. Bhutan's cooperation is crucial for India to manage and secure its northeastern borders, particularly against insurgencies and China's influence.
• Economic Interests: 
  • India is Bhutan's largest trading partner. The economic relationship includes not only trade but also significant Indian aid for Bhutan's development, which helps stabilize and grow the Bhutanese economy.
• Cultural and Historical Ties: 
  • The two countries share deep cultural, religious, and historical ties, with Buddhism being a major connecting thread. These ties foster goodwill and mutual understanding.
• Environmental Cooperation: 
  • Bhutan's commitment to maintaining a significant portion of its land under forest cover aligns with India's environmental and climate goals. Collaborative efforts in environmental conservation are beneficial for both nations.

CHALLENGES:

• China's Influence: 
  • The growing influence of China in the region has been a source of concern for India. Bhutan, while having no diplomatic relations with China, has been engaged in border negotiations with China. This has sometimes been seen as a shift in Bhutan’s foreign policy, potentially affecting its relations with India.
  • For instance, former Bhutanese Prime Minister Lotay Tshering, perceived as more open to engagement with China, signed a cooperation agreement with Beijing in October 2023 for border delineation, involving a joint technical team.
• Hydropower Projects: 
  • Hydropower generation is a major area of cooperation between India and Bhutan. However, there have been concerns in Bhutan about the hydropower projects with India, particularly regarding fairness in revenue sharing, environmental impact, increasing economic dependency, and India's strategic influence in this sector.
• Doklam Standoff: 
  • The Doklam standoff in 2017 between Indian and Chinese forces in a territory claimed by both China and Bhutan highlighted the strategic challenges in the region. This incident underscored the complexities of the tri-junction border area involving India, China, and Bhutan?.
• Economic and Trade Concerns:
  • Bhutan's economy is closely intertwined with India, its primary trading partner. However, this relationship has occasionally led to tensions, exemplified by Bhutan's withdrawal from the BBIN Motor Vehicle Agreement in 2017 over environmental and sovereignty issues. 
  • Moreover, a trade imbalance exists, with Bhutan importing more from India than exporting. Bhutan is now seeking better market access in India to reduce this trade deficit and achieve a more equitable economic relationship.
• Political Dynamics: 
  • The internal political dynamics in Bhutan, such as the approach of different political parties towards India, can also impact bilateral relations. For instance, former Bhutanese Prime Minister Lotay Tshering is known for his pro-China stance, which influenced Bhutan's foreign policy and impacted its relations with India.

WAY FORWARD:

• Balanced Trade Relations: Work towards reducing the trade imbalance, possibly by providing greater market access to Bhutanese products in India.
• Sustainable Hydropower Development: Address concerns in hydropower projects, ensuring fair revenue sharing and minimal environmental impact.
• Enhanced Strategic Cooperation: Collaborate on shared security concerns, including combating terrorism, drug trafficking, and other transnational crimes.
• Diversified Economic Cooperation: Expand economic cooperation beyond trade and hydropower, exploring sectors like technology, education, and sustainable development.
• Political Diplomacy: Engage with various political entities in Bhutan to maintain strong bilateral relations irrespective of the changing political landscape.
• Border Security and Cooperation: Continue collaboration on border security, respecting each other’s sovereignty and security concerns.
• Cultural Exchange and People-to-People Contact: Enhance cultural exchanges and educational cooperation to strengthen people-to-people ties.
• Environmental Collaboration: Jointly focus on environmental conservation and climate change initiatives, leveraging Bhutan's commitment to environmental preservation.

PRACTICE QUESTION:

Q. “The relationship between India and Bhutan is largely positive and cooperative, but it is not immune to the complexities and challenges that characterise international relations." Discuss.( 15 marks, 250 words)