India Bhutan Relations in Focus Again Amid China Bhutan Border Talks

India Bhutan Relations & China Bhutan Border Talks

The king of Bhutan, Jigme Khesar Namgyel Wangchuck, recently arrived in New Delhi amid news that Bhutan and China held the 25th round of bilateral border talks in Beijing after a gap of seven years.

The UCN Team has conducted a thorough analysis of India Bhutan relations in 2023, aiming to provide you with essential insights and key concepts.

Talks between India and China stalled following the 2017 Doklam standoff, a tense situation in the Himalayan region where Bhutan, India (Sikkim), and China (Tibet) converge at a tri-junction.

The severity of that border conflict led to the suspension of talks between Thimphu and Beijing. Now, Bhutan is looking to expedite normalizing relations with China by quickly settling their border dispute and establishing diplomatic ties. However, India has concerns about the prospect of China gaining leverage over Bhutan, especially relating to the strategic Doklam plateau. India will have to closely monitor the surprising speed of progress in China-Bhutan talks.

India Bhutan relations Overview

Key Takeaways: India-Bhutan Relations
SectionsDetails
Historical Ties
  • 8th century: Spread of Buddhism from India to Bhutan
  • 1910: Bhutan as British protectorate
  • 1947: Bhutan recognizes Indian independence
  • 1968: Establishment of formal diplomatic relations
Areas of Cooperation
  • Political: High-level visits, India’s support to democratization
  • Economic: Trade, hydropower, development assistance
  • Cultural: Buddhism, education, people-to-people ties
  • Defence: Security coordination, counter-insurgency ops
Recent Relations
  • Infrastructure projects: Hydroelectric, skill development
  • Rising bilateral trade and investments
  • Vaccine Maitri: India assisted Bhutan with Covid vaccines
Current Issues
  • China-Bhutan border talks: India’s Doklam concerns
  • Refugee crisis: 1 lakh Bhutanese refugees in Nepal, India
  • BBIN: Bhutan’s unease over connectivity project
Strategic Significance
  • Security of Siliguri corridor
  • Stability in North East India
  • Countering Chinese regional influence
Conclusion
  • Long history of close ties, mutual benefits
  • Need for continued cooperation amid geopolitical tensions

India Bhutan Relations

Background of India Bhutan Relations

  • India and Bhutan have had diplomatic relations since 1968, but their historical ties go back much further.
  • In the 8th century, the Buddhist monk Padmasambhava went from India to Bhutan and established the Nyingmapa sect of Buddhism, showing how India contributed to Bhutan’s cultural growth early on.
  • From 1910 to 1947, Bhutan was a British protectorate and allowed the British to guide its foreign affairs and defense.
  • When India gained independence in 1947, Bhutan was among the first nations to recognize it. Since then, ties between the two countries have strengthened.

Strategic Importance of Bhutan for India

  • Bhutan shares a 699 km border with India and has historically helped India counter security threats along its border.
  • Bhutan cooperated with India during operations against insurgents like Operation All Clear in 2003.
  • The Siliguri Corridor that connects India’s north-east region to the rest of the country is very close to Bhutan, making stability and friendliness of Bhutan crucial for India.
  • Bhutan has unresolved border disputes with China, including in the strategically important Doklam plateau. Indian and Chinese forces were involved in a standoff in Doklam in 2017.
  • India aims to counter China’s regional influence, and Bhutan has resisted China’s attempts to establish diplomatic and economic ties.

Areas of Cooperation Between India and Bhutan

Political Relations

High Level Visits and Dialogues

  • There are regular high level visits and dialogues between India and Bhutan to sustain their close ties.
  • In 2014, Prime Minister of India chose Bhutan as his first foreign destination after taking office. His visit reinforced the tradition of high level exchanges.
  • In 2017, the King and Queen of Bhutan visited India along with their son.

India’s Support to Bhutan’s Democratization

  • Bhutan transitioned to democracy in 2008. India has developed close ties with both the Bhutanese monarchy and the democratic leadership.
  • The bilateral relationship has matured over the years, retaining its warmth and trust.

Economic Ties

Trade Relations – India is Bhutan’s Largest Trading Partner

  • India is Bhutan’s largest trading partner, accounting for 82.6% of Bhutan’s total trade in 2020.
  • Bilateral trade is governed by the India-Bhutan Trade and Transit Agreement that establishes a free trade regime between the countries.
  • Major Indian exports to Bhutan include mineral products, vehicles, and machinery, while Bhutan mainly exports electricity, ferro alloys, and cement to India.

Hydropower Cooperation – Indian Assistance in Building Hydropower Projects

  • India has constructed 3 major hydroelectric projects in Bhutan totaling 1416 MW. Currently 2 more big projects are under construction.
  • Hydropower is a major source of revenue for Bhutan, accounting for over 25% of its GDP. India imports surplus hydropower from Bhutan.

Development Assistance – Indian Aid to Bhutan’s Five Year Plans

  • India provided around Rs. 5000 crores in assistance for Bhutan’s 10th Five Year Plan from 2008-2013.
  • For the ongoing 12th Five Year Plan from 2018-2023, India has committed Rs. 4500 crores in assistance to Bhutan.

Spread of Buddhism from India to Bhutan

  • In the 8th century, the Buddhist monk Padmasambhava traveled from India to Bhutan.
  • He established the Nyingmapa sect and helped growth of Buddhism in Bhutan.

Buddhist Pilgrimage Sites in India for Bhutanese People

  • Many Bhutanese pilgrims visit Buddhist sites in India like Bodh Gaya, Rajgir, Nalanda etc.

Educational Exchanges and Scholarships

  • India offers scholarships to Bhutanese students for undergraduate and postgraduate studies in Indian institutions.
  • The Nehru Wangchuck Scholarship Scheme facilitates educational exchanges.

Defence and Security Cooperation

India-Bhutan Friendship Treaty Provisions on Defence and Security

  • The 2007 treaty states that both sides will cooperate closely on issues relating to national security and interests.
  • Neither side shall allow use of their territory for activities harmful to the other’s security.

Coordination between Indian and Bhutanese Security Forces

  • There is a Secretary-level mechanism for coordination on border management and security.
  • Border District Coordination Meetings are held between bordering Indian states and Bhutan.

India’s Role in Operation All Clear Against Insurgents

  • In 2003, the Indian and Bhutanese armies conducted Operation All Clear targeting Assam separatist groups operating in Bhutan.
  • It highlighted India’s critical role in Bhutan’s security and stability.

Recent India Bhutan Relations

Covid Assistance

Vaccine Maitri Initiative

  • Bhutan was the first country to receive Made in India Covishield vaccines under India’s Vaccine Maitri initiative in 2021.

Infrastructure Projects

Mangdechhu Hydroelectric Project

  • India is assisting Bhutan in constructing this 720 MW project which is nearing completion.

Gyalsung Project

  • India extended a grant of Rs. 200 crores to Bhutan for the Gyalsung project in 2021. It will help skill development of Bhutanese youth.

Trade and Investment

Rising Bilateral Trade

  • Trade between India and Bhutan has nearly tripled from $484 million in 2014-15 to $1422 million in 2021-22.

Indian Investments in Bhutan

  • India accounts for 50% of total FDI in Bhutan with around 30 Indian companies present across sectors.

Current Issues in India Bhutan Relations

Bhutan’s Border Talks with China

Details of the Latest Round of Talks After 7 Years

  • Bhutan and China held the 25th round of border talks in Beijing in 2023 after a gap of 7 years.
  • The talks aim to resolve border disputes between the two countries and establish formal diplomatic ties.

India’s Concerns Over Doklam Plateau

  • India is worried China may pressure Bhutan to cede control over the strategically important Doklam plateau near Sikkim.
  • Chinese control of Doklam would compromise security of the Siliguri corridor.

Refugee Issue

Bhutanese Refugees in Nepal and India

  • Around 1 lakh Bhutanese of Nepali origin were forced to flee Bhutan in the 1990s after being deemed illegal immigrants.
  • They took refuge in Nepal and India after facing eviction and ethnic persecution.

Bhutan’s Reluctance in Repatriation

  • Bhutan has been reluctant to take back refugees citing concerns over political unrest and impact on demography.
  • The refugee issue remains unresolved despite international pressure on Bhutan for repatriation.

Other Challenges

Bhutan’s Unease Over BBIN Project

  • Bhutan opted out of the Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement over concerns regarding environment impact and effects on Bhutanese transporters.

Instances of Indian Interference

  • There have been some instances of perceived Indian interference in Bhutan’s internal matters that have led to anti-India sentiments among some groups.

Final Thoughts

Based on the UCN team’s analysis, India Bhutan relations have a strong foundation of historical trust and cooperation, and the future appears promising as well. India and Bhutan share deep historical, cultural, economic and strategic ties that have matured over decades. The relationship has been mutually beneficial.

Need for Continued Cooperation in Face of Regional Tensions

  • With rising Chinese assertiveness in the region, it is crucial for India and Bhutan to maintain close coordination and cooperation in matters of security, trade and development.
  • Regular high-level exchanges, dialogue and mutual sensitivity can help address intermittent tensions and keep the bilateral ties on an even keel.
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UCN Team: Combining expertise in UPSC Exams and Tech to deliver high-resolution, insightful content for aspiring civil servants

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