INDIA-BHUTAN

India and Bhutan, in a recent high-level meeting between Prime Minister Narendra Modi and Bhutan's 5th King Jigme Khesar Namgyel Wangchuck, have committed to advancing their partnership in several key areas.

2. Historical Ties between India and Bhutan

India and Bhutan have a long and close history of diplomatic and economic ties, characterized by cooperation and mutual respect. Their relations can be traced back to ancient times when they had cultural and economic interactions. 

• The modern era of India-Bhutan relations formally began with the signing of the Treaty of Friendship between India and Bhutan in 1949. This treaty laid the foundation for diplomatic, economic, and security cooperation. It also affirmed Bhutan's sovereignty while recognizing India's role in guiding its foreign policy.
•  India has played a crucial role in ensuring Bhutan's security. During the border dispute between Bhutan and China in 2017, India supported Bhutan's stance, reinforcing their security cooperation.
• India has been a major source of economic aid and development assistance for Bhutan. Various Indian projects in Bhutan have focused on infrastructure development, education, healthcare, and other sectors, contributing to Bhutan's socio-economic progress.
• One of the significant areas of economic collaboration has been hydropower. India has been involved in the development of several hydropower projects in Bhutan, providing a source of revenue for the Bhutanese economy. These projects have also enhanced regional energy security.

• The discussions involved plans for improved connectivity between the two nations, especially focusing on border areas and immigration posts to support Bhutan’s initiative for a smart city at Gelephu, situated on the border between Bhutan and Assam. This development aims to fortify ties and foster regional growth.
• India's approval for the final survey on a 58 km cross-border rail link between Gelephu and Kokrajhar in Assam marks a significant step. Additionally, both nations have agreed to explore an 18 km rail link between Samtse in Bhutan and Banarhat in West Bengal, fostering greater trade opportunities. Furthermore, the agreement to extend Bhutanese trade items to Chilahati in Bangladesh from Haldibari in West Bengal indicates a broader regional trade expansion strategy.
• India’s commitment to supporting Bhutan’s socio-economic development in line with Bhutanese government priorities was reaffirmed by Prime Minister Modi. This includes support for Bhutan's 13th Five-Year Plan and the Bhutanese King's vision for a Special Economic Zone in the Sarpang district, which includes plans for an international airport at Gelephu.
• Acknowledging India's support for Bhutan's 12th Five-Year Plan, the Bhutanese King expressed gratitude, while India reiterated its commitment to assist in the upcoming 13th Five-Year Plan. The joint statement highlighted the importance of their strong bilateral ties and mutual support in various developmental efforts.
• The decision to transform the Darranga-Samdrup Jongkhar border crossing into an immigration check post is aimed at enhancing connectivity, tourism, and facilitating entry for third country nationals. Upgrading the land customs station at Dadgiri in Assam to an Integrated Check Post (ICP) and developing facilities in Gelephu on the Bhutanese side will further support the Bhutanese Special Economic Zone project, boosting trade and connectivity.
• These joint initiatives are expected to ease travel between India and Bhutan, foster increased trade with Bangladesh, and bolster tourism revenues for Bhutan, particularly important in the wake of economic challenges resulting from the pandemic. Bhutan's initiatives, led by the King, intend to create more job opportunities and enhance tourism in the country.

4. Conclusion

The recent discussions and agreements between India and Bhutan focus on improving connectivity, trade, and tourism, as well as addressing economic challenges in Bhutan through infrastructure development and international cooperation.