India and Bhutan | PSIR Optional for UPSC (Notes) PDF Download

Indo-Bhutan Relations

Why in News?

• The first Indo-Bhutan feature film 'Singye' achieved recognition by winning four awards at the 18th Bhutan National Film Awards, held on February 21, 2019.

Historical Ties

• India and Bhutan have a long-standing relationship that dates back to 1910, when Bhutan became a protectorate of British India. This arrangement allowed the British to oversee Bhutan's foreign affairs and defense.
• When India gained independence in 1947, Bhutan was one of the first countries to recognize India. Since then, the bond between India and Bhutan has strengthened, particularly due to Bhutan's historically strained relationship with China.
• India and Bhutan share a 699-kilometer border and deep religious and cultural ties. A significant figure in this shared history is Guru Padmasambhava, a Buddhist saint who played a crucial role in spreading Buddhism and strengthening the traditional connections between the people of both nations.
• In 1968, India established an office of a Special Representative in Thimphu, Bhutan. Bhutan reciprocated by opening a similar office in 1971. These offices were elevated to full-fledged embassies in 1978.
• The foundation of bilateral relations between India and Bhutan was laid by the Indo-Bhutan Treaty of Peace and Friendship in 1949. However, Article 2 of the treaty granted India a significant role in guiding Bhutan's foreign policy. This led to amendments in the treaty in 2007.
• The revised treaty allows Bhutan to import arms, provided that Indian interests are not compromised and there is no re-export of the weapons by the government or individuals.
• Articles 6 and 7 of the current treaty address the issues of 'national treatment' and equal privileges for citizens of each country on each other's territory.

Indo-Bhutan Treaty of Peace and Friendship, 1949

Key Provisions of the Treaty

• Perpetual Peace and Friendship: The treaty establishes a framework for enduring peace and friendship between the parties involved.
• Free Trade and Commerce: It promotes unrestricted trade and commercial activities between the nations.
• Equal Justice: Ensures that the citizens of each country receive equal justice under the law when in the other country.

2007 Renegotiation of the Treaty

• Sovereignty Enhancement: The 2007 renegotiation of the treaty strengthened Bhutan's sovereignty by removing the requirement for India’s guidance on foreign policy matters.
• Close Cooperation: The updated treaty emphasizes close cooperation on national issues between the countries.
• Cultural and Economic Cooperation: The renegotiated treaty also provides for enhanced collaboration in cultural and economic fields.

Bhutan’s Significance to India

Geographical Significance:

• Bhutan shares borders with four Indian states: Assam, Arunachal Pradesh, West Bengal, and Sikkim.
• Located in the Himalayas, Bhutan acts as a buffer zone between India and China.
• The security of Bhutan's borders, especially the western border, is crucial for India.

Economic Significance:

• Bhutan serves as a market for Indian goods and a destination for Indian investments.
• It is also a significant source of hydropower for India.

Political Significance:

• A politically stable Bhutan is vital for India’s security.
• An unstable Bhutan could potentially harbor anti-India activities and militant groups.

Areas of Cooperation

Trade:

• India and Bhutan's trade is regulated by the India-Bhutan Trade and Transit Agreement of 1972, which was last renewed in November 2016. This agreement promotes a free-trade regime and allows for duty-free transit of Bhutanese exports to third countries.
• India is Bhutan's largest trading partner. In the first half of 2018, trade between the two countries amounted to Rs. 4318.59 crore.
• Major exports from India to Bhutan include mineral products, machinery, electrical equipment, etc. Major imports from Bhutan include electricity, ferrosilicon, Portland cement, etc.

Economic Assistance:

• India is Bhutan’s leading development partner, providing financial support since the launch of Bhutan's First Five Year Plan in 1961.
• India has allocated Rs. 4500 crore to Bhutan’s 12th Five Year Plan (FYP).

Water Resources:

• India is significantly involved in the development of hydropower projects in Bhutan, which provides electricity for domestic use and revenue from surplus electricity exported to India.
• India has constructed three Hydroelectric Projects (HEPs) in Bhutan and is currently assisting in the development of a power plant on the Mangdechhu River.
• This cooperation is part of the 2006 Agreement on Cooperation in Hydropower, under which India aims to assist Bhutan in developing a minimum of 10,000 MW of hydropower and importing surplus electricity by 2020.
• There is also a Joint Group of Experts (JGE) on flood management between India and Bhutan.

Border Management:

• A Secretary-level mechanism exists for border management and security matters between India and Bhutan.
• A Border District Coordination Meeting (BDCM) mechanism facilitates coordination on border management between Indian border states and the Royal Government of Bhutan (RGoB).

Educational and Cultural Cooperation:

• Many Bhutanese students study in India, with the Indian government providing scholarships to these students.
• Regular cultural exchanges occur between the two countries, with the India-Bhutan Foundation, established in 2003, aiming to enhance people-to-people exchanges in the cultural field.

Indian Community:

• Approximately 60,000 Indian nationals live in Bhutan, primarily employed in the hydropower construction and road industries.
• Additionally, around 8000-10,000 daily workers cross the border into Bhutan for work.

Multilateral Partnership:

• Both India and Bhutan are founding members of the South Asian Association for Regional Cooperation (SAARC), which focuses on economic, social, and cultural development in the South Asian region.
• They also participate in other multilateral forums such as BBIN (Bangladesh, Bhutan, India, and Nepal) and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation).

Challenges

India's Influence on Bhutan's Internal Affairs

• There have been times when India has interfered in Bhutan's internal matters. This has created a negative view of India among some Bhutanese people.
• Many Bhutanese now feel that India's investment in their hydropower sector is more about India's own benefit, as it allows India to buy Bhutan's surplus power at low prices.
• Bhutan is also worried about the profitability of its hydropower projects because India is shifting towards renewable energy sources like wind and solar power.
• From a security standpoint, the illegal establishment of camps by militant groups in the dense forests of southeast Bhutan is a concern for both countries.
• China's ongoing claims to crucial border areas like Chumbi Valley and Doklam, along with its efforts to strengthen diplomatic and economic ties with Bhutan, continue to worry India.

Way Forward

India’s Efforts in Bhutan: Key Points

• India needs to better promote the benefits Bhutan receives from Indian projects.
• Exploring new areas of cooperation, such as the establishment of ISRO’s ground station in Bhutan, is crucial. This station will aid Bhutan in disseminating weather-related information to remote regions.
• While India should generally avoid interfering in Bhutan’s internal matters, it can play a supportive role as a mentor.
• The safety of the border with China is a mutual concern for both nations, necessitating collaborative efforts to address this issue and ensure that border areas remain free of militants.
• Being neighbors, it is vital for both countries to recognize each other's value continuously. Regular high-level visits between the two nations are essential to strengthen this relationship.