India and South Asia - 2 - UPSC PDF Download

India Bhutan Relations

India and Bhutan have shared a close and friendly relationship since the establishment of the Indian embassy in Bhutan in 1968. As their relationship turns 50 in 2018, it is essential to understand the critical aspects and history of their relations.

Important Issues:

• Friendship Treaty 1949, 2007: The two countries signed the 'India Bhutan Friendship Treaty' in 1949, which largely continued the 1910 Punakha treaty. In this treaty, Bhutan enjoyed sovereignty in domestic matters, while foreign policy was largely guided by India.
• Chumbi Valley Issue: The Chumbi Valley is a strategically important area that connects India, Bhutan, and China. During the 1980s and 1990s, China offered a package deal to Bhutan regarding border issues, which Bhutan rejected due to India's concerns over the Chumbi Valley.
• 2018 Elections and their impact on the relationship: As elections in Bhutan draw near, the outcome could potentially affect the relations between the two countries, especially in terms of cooperation in various sectors like hydropower.
• Hydropower Cooperation Issue: India has been assisting Bhutan in developing hydropower projects since the 1970s. This has led to an increase in economic interdependence between the two countries.
• Views of major experts: Various experts like S D Muni, Harsh Pant, Suhasini Haidar, and P Stobdan have provided their insights on the relationship between India and Bhutan.

Brief History of Relations

• 1865: British defeated Bhutan and signed the Treaty of Punakha in 1910, maintaining territorial sovereignty of Bhutan and making it a protectorate of British India.
• 1949: India and Bhutan signed the 'India Bhutan Friendship Treaty' due to concerns over China's intentions in Tibet.
• 1956: India constructed a 170 km highway connecting Thimpu to the Indian border, reflecting Bhutan's tilt towards India.
• 1961 onwards: Bhutan adopted a five-year plan approach, and India started providing developmental assistance.
• 1970s: India began assisting Bhutan in hydropower projects, leading to increased economic interdependence.
• 1980s and 1990s: Border issues arose between Bhutan and China, with Bhutan rejecting China's package deal due to India's concerns over the Chumbi Valley.

Overall, India and Bhutan have maintained a strong and friendly relationship over the years, with close cooperation and assistance in various sectors. The future of this relationship depends on the continued commitment of both nations towards mutual growth and understanding.

Disputed areas and events in the West and North of Bhutan

21st Century

• Bhutan's monarchy decided to move towards a constitutional monarchy and parliamentary democracy in response to the protests in Nepal. The constitution, which states that candidates should be graduates, every party has to contest from all constituencies, and even monarchs can be removed with a 2/3 majority, was adopted in 2007. In the same year, the '2007 India Bhutan Friendship Treaty' was signed, revising Article 2 of the 1949 treaty.
• In 2008, the DPT party won the elections to form the first government in Bhutan, emphasizing sovereignty. Bhutan has diplomatic relations with 53 countries as of 2013, but none of the P5 countries have embassies in Bhutan.
• In 2012, Bhutanese PM Thinley met Chinese PM Wen Jiabao at the Rio 20 summit without taking India's confidence. In the 2013 elections, the DTP was talking too much about sovereignty and India cut oil, kerosene, and LPG subsidies to Bhutan, which was criticized in South Asia.

2017 Doklam Stand-off

• The Doklam Crisis was a 73-day standoff between the Indian and Chinese armies, with China claiming Chumbi Valley and Doklam Plateau. China objected to India's intervention in China-Bhutan border issues, but India argued that they had a treaty obligation and that the trijunction was a matter of Indian interest.
• The standoff ended before the BRICS 2017 summit, with Sushma Swaraj stating that the status quo ante would be restored. Bhutan did not oppose India's intervention, showing its adherence to the 2007 treaty. However, Bhutan is also concerned about settling border disputes and normalizing relations with China.

2018 Bhutan Elections: Foreign policy was not discussed in the election manifesto, and the Election Commission asked political parties not to discuss it in campaigns. The DNT party won the elections over the DPT, which fought with the agenda of sovereignty and self-sufficiency. Shering Lotay became the PM of Bhutan.

Other Issues

• Security Cooperation: Operation All Clear was a military operation conducted by the Royal Bhutan Army against Assam separatist insurgent groups in southern Bhutan in 2003-2004. India's Vajpayee government cooperated with the Bhutanese king to flush them out. India also provides training to Royal Bhutanese Army officials under the IMTRAT.
• Economic Cooperation: India and Bhutan cooperate on five-year plans, road-building projects, and hydropower cooperation. However, Bhutan faces challenges as a landlocked country with overdependence on the Indian economy, single-good dependence, and public debt amounting to 107% of its GDP. Bhutan seeks to diversify its economy and exports, with ecotourism and agriculture being key areas. India can help in this regard by providing grants and loans, as well as promoting the SAARC electricity grid for sharing electricity between India, Bangladesh, Nepal, and Bhutan.

Expert’s comments on India – Bhutan relationships

S D Muni (Prof. Sukh Deo Muni)

• The development of full diplomatic relations between Bhutan and China is likely to occur in the future, as democracy continues to develop in the region.
• India should avoid trying to prevent this diplomatic relationship, as it may lead to India being perceived as a dominant and controlling force in the region.
• Instead, India should focus on leveraging its existing advantages with Bhutan, such as its geographical proximity and close relations with the Bhutanese monarchy.
• India should ensure that its security and strategic interests are addressed by Bhutan, while allowing the normalization of China-Bhutan ties to progress.
• India should avoid using coercive diplomacy with Bhutan, as this may harm its relationship with the country and potentially push Bhutan closer to China.
• By fostering a positive and mutually beneficial relationship with Bhutan, India can maintain its influence in the region while allowing Bhutan to develop its international relationships.

Harsh V Pant

• India should learn from the 2013 strategy and avoid repeating it in order to prevent attracting negative publicity and criticism.
• The 2013 strategy was short-sighted and lacked a long-term strategic vision, which should be taken into consideration for future policymaking.
• Bhutan, as a friendly neighbor, should refrain from blaming India for any issues, similar to how Nepal has done in the past.
• India should focus on maintaining positive diplomatic relations with its neighboring countries rather than engaging in coercive diplomacy, which may be detrimental in the long run.
• While realism as a theory may suggest a different approach, it is essential for India to prioritize peaceful and cooperative diplomacy in order to maintain regional stability and foster development.

Suhasini Haidar

• Swift resolution of hydropower-related issues: India should work towards a quick and effective resolution of any problems associated with hydropower development, particularly in the context of bilateral cooperation with Bhutan.
• Consideration of Bhutan's interests: In addressing these issues, India must take into account Bhutan's concerns and aspirations, ensuring that the interests of both countries are protected.
• Expanding the economic relationship: India and Bhutan should explore new avenues for economic collaboration, moving beyond just hydropower and including areas such as trade, investment, and tourism.
• Addressing liquidity concerns in Bhutan: India should help Bhutan tackle any liquidity challenges it may face, particularly in the context of bilateral economic cooperation.
• Consistency in Bhutan's foreign policy: Despite changes in government, Bhutan remains committed to its established foreign policy, particularly with regard to its relations with India.
• Concerns over India's CBTE policy: Bhutan's foreign minister has expressed concerns about India's revised Cross Border Trade of Electricity (CBTE) policy and has requested changes to better accommodate Bhutan's interests.
• Limited diplomatic relations with P5 countries: Bhutan maintains its policy of not establishing full diplomatic relations with the five permanent members of the UN Security Council (P5), but continues to engage with them, including China, through cordial relationships and people-to-people interactions.

Historical background

The India-Nepal Treaty of Peace and Friendship signed in 1950 aimed to establish a close relationship between the two countries. The treaty provided for open borders between India and Nepal, allowing the citizens of both countries to settle and work in each other's territory. It also allowed for the tariff-free movement of goods and people and the induction of Gorkhas into the Indian Army. Additionally, secret letters associated with the treaty stated that Nepal would primarily buy arms from India.

• However, the treaty has been criticized for several reasons. Some argue that it was signed between unequal representatives, as it was signed between the head of the state of Nepal and the Indian Ambassador to Nepal. The treaty was also signed between Ranas and India, despite the Ranas not being democratically elected. Additionally, the open border between India and Nepal has led to various security challenges, such as the trafficking of fake currency, humans, and narcotics, as well as the establishment of terrorist bases backed by the Pakistani intelligence agency, ISI.
• In recent years, the China factor has become more prominent in Nepal, with the country exploring transit rights through China and signing a 10-point agreement in 2016. China has also provided support for infrastructure projects in Nepal, such as the construction of road networks and hydropower projects.
• Despite these challenges, India remains an important partner for Nepal, providing significant economic aid and employment opportunities for Nepalese citizens. However, the relationship between the two countries remains complex, with issues surrounding the 1950 treaty still unresolved.

Views of Scholars on Nepal

Shyam Saran (Ex Diplomat)

• P2P contacts, economic ties, cultural links, marital relations – there is proximity in countries. Paradox is G2G relations have lacked behind.
• What can be done? Be open to any treaty Nepal wishes to negotiate, as India have not much to loose.
• There is large number of ex-army Gorkha soldiers of India in Nepal. India needs to explore that option.
• Terai region has lacked in infrastructure and needs more focus from India.

S D Muni (Ex Diplomat)

• India needs to speedily implement its outstanding commitments in Nepal. e.g. construction of railway lines, hydroelectric dams, oil pipeline agreement.  An undue delay from India’s side is unwarranted and leaves space for China.
• Geography and P2P relations favour India Nepal relations.

C Raja Mohan (Journalist, ORF, South Asian Studies)

• On China factor – India must adopt Nepal 1st approach. There must be urgent focus on India’s neighbourhood. Geography and P2P is in India’s favour but we cannot take it for granted.
• Avoid mistakes of past ( interfering in domestic issues ) and provide reassurance to Nepal through continuous political engagement.

Harsh V Pant (ORF head of strategic studies.)

• India has failed to consolidate its hold in south Asia primarily because of structural asymmetry, poor pace of implementation, inward looking approach till 1990s, focus mainly on USSR and now USA has ensured neglect of S Asia.

Conclusion

India and Bhutan share a close and friendly relationship, with a history of cooperation and assistance in various sectors such as hydropower and infrastructure development. As the relationship turns 50, it is essential for both nations to maintain their commitment to mutual growth and understanding. India should focus on fostering a positive relationship with Bhutan, addressing security and strategic interests and allowing the normalization of China-Bhutan ties. At the same time, Bhutan should continue to adhere to the 2007 treaty and work towards diversifying its economy and exports. By maintaining strong ties and collaboration, India and Bhutan can continue to uphold regional stability and development.

Frequently Asked Questions (FAQs) of India and South Asia

What is the basis of the close relationship between India and Bhutan?

The close relationship between India and Bhutan began with the signing of the 'India Bhutan Friendship Treaty' in 1949. This relationship has been characterized by close cooperation and assistance in various sectors such as hydropower, infrastructure, and economic development.

What was the significance of the Chumbi Valley issue?

The Chumbi Valley is a strategically important area connecting India, Bhutan, and China. During the 1980s and 1990s, China offered a package deal to Bhutan regarding border issues. However, Bhutan rejected this deal due to India's concerns over the Chumbi Valley's strategic importance.

How has India assisted Bhutan in developing hydropower projects?

India has been assisting Bhutan in developing hydropower projects since the 1970s. This has led to an increase in economic interdependence between the two countries.

What was the outcome of the 2017 Doklam Stand-off?

The Doklam Crisis was a 73-day standoff between the Indian and Chinese armies. The standoff ended before the BRICS 2017 summit, with India's foreign minister stating that the status quo ante would be restored. Bhutan did not oppose India's intervention, showing its adherence to the 2007 treaty.

What are some recommendations from experts on how to maintain and strengthen the India-Bhutan relationship?

Experts suggest that India should avoid using coercive diplomacy, foster a positive and mutually beneficial relationship with Bhutan, focus on maintaining positive diplomatic relations with neighboring countries, and work towards a swift resolution of hydropower-related issues.