India-Bhutan: Reiterating old ties in a new context
India, Nov. 17 -- Prime Minister (PM) Narendra Modi was on a two-day visit to Bhutan last week. The visit underscored India's commitment towards Bhutan amid the changing security environment in the region. The visit was intended to address the new dynamics of a changing Bhutan, while also underscoring India's gratitude and willingness to engage with the popular and beloved monarchy of the country.
Bhutan today is at a crossroads. Decades of unaddressed economic and social problems and little economic diversification have contributed to youth unemployment (17.8%). In recent years, over 9% of its population has migrated elsewhere, hollowing out the country's working population and bureaucracy. By 2027, the country will also transition into an ageing society. China has continued intrusions into Bhutanese territories, pressuring the country to demarcate borders and enhance diplomatic relations.
To cope with these challenges, Bhutan is redefining itself under the leadership of its fifth king, Jigme Khesar Namgyel Wangchuck. It is investing significantly in technology to improve its economy, governance, and efficiency. The State has introduced Gyalsung - a policy of mandatory national service for Bhutanese attaining 18 years of age - to promote a new form of civic nationalism. This is also being supplemented by the flagship project of Gelephu Mindfulness City (GMC), a special administrative region bordering Assam, intended to draw investments, promote innovation, and economic growth.
India and Bhutan have also continued to reshape their ties, especially with frequent high-level engagements. Since January 2024 alone, Bhutan PM Tshering Tobgay has visited India six times, and the king has visited four times. PM Modi has visited Bhutan twice. India is assisting Bhutan with Gyalsung and is also helping with the GMC's success by enhancing connectivity. India and Bhutan inaugurated a check post in Darranga in 2024, and Bhutan will also enjoy access to Assam's Jogighopa multi-modal logistics park. India will be funding two railway links between Samtse and Banarhat (Assam) and Gelephu and Kokrajhar (Assam). India has agreed to open an immigration check post at Gelephu.
During PM Modi's visit, both countries inaugurated the 1,020 MW Punatsangchuu -2 project, which will add to 40% of Bhutan's total production capacity. Discussions were also held on resuming Punatsangchuu-1. India also offered Bhutan its first-ever Line of Credit worth Rs.4,000 crore in the energy sector. This is in addition to the Rs.10,000-crore assistance for Bhutan's current Five-Year Plan and economic stimulus package.
The visit was symbolic too. It coincided with the 70th birth anniversary of the fourth king, the ongoing Global Peace Prayer Festival, and the presence of the Holy Piprahwa Relics of Lord Buddha from India. India has announced land for the construction of a Buddhist temple in Varanasi. This is in addition to the previously inaugurated Bhutanese temple in Nalanda.
Modi's decision to join the birthday celebrations is also largely symbolic of India's strong and long-standing relationship with the monarchy. The fourth king, who ruled from 1972 to 2006, has largely shaped the current nature of India-Bhutan relations. It was under his leadership that Bhutan and India started hydropower cooperation. Even after initiating the border negotiations with China in 1984, the king remained mindful of Indian concerns and interests. He rejected the package deal due to its implications for India. In 2003, he also personally led an operation all-clear against Indian militants settled in Bhutan.
India also discussed defence and security with the current king during the recent visit. Bhutan and China have made steady progress in the border demarcation, even as Chinese intrusions have continued. To date, China and Bhutan have had 25 rounds of negotiations. Progress has been made in recent years with Thimphu leaving out the complex Doklam trijunction and advocating trilateral negotiations on the sector. With India and China currently looking at the Sikkim sector as an "early harvest" solution for border delimitation, Bhutan sees an opportunity to resume negotiations on the trijunction too. At the same time, Bhutan has sought Indian defence cooperation and technology to deter further Chinese intrusions. And the fact that Modi was accompanied by National Security Advisor Ajit Doval and did not cancel the visit after the bomb explosion in Delhi speaks of the growing salience of security concerns in this bilateral engagement.
In essence, the visit was both symbolic and substantive. By touching upon several issues like connectivity, development cooperation, culture, energy, and defence and security, India has demonstrated that it will remain a steadfast partner to the country even as it faces a new set of domestic changes....
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