Context:

India and Bhutan recently discussed boundary-related field matters and explored opportunities for technological and capacity-building collaboration. The two-day meeting, held in New Delhi, brought together officials from the Government of India and Bhutan's Office of International Boundaries to review matters relating to boundary-related fieldwork.

Key highlights of the Meeting

• Boundary-Related Field Matters: Both sides expressed satisfaction with the work completed by their respective field survey teams and other stakeholders involved in boundary-related fieldwork.
• Technological and Capacity-Building Collaboration: The two sides discussed the potential for technological and capacity-building collaboration related to survey and boundary-related work, aligned with the priorities of both governments.
• Work Plan for the Next Three Field Seasons: A work plan was finalized for the next three field seasons, ensuring a clear roadmap for future collaboration between the two countries.

About India-Bhutan Bilateral Relations: 

India and Bhutan share a strong and multifaceted relationship, underpinned by political, economic, and cultural ties. This relationship has been built over several decades, with numerous agreements and collaborations that benefit both nations.

Political relationship:

The foundation of India-Bhutan relations is the Treaty of Friendship, first signed in 1949 and renegotiated in 2007. This treaty underscores their deep political and security cooperation, ensuring mutual respect and understanding. Diplomatic relations were formally established in 1968, and since then, both countries have cooperated on multiple fronts, particularly in defense and security.

Hydro-Power Cooperation

One of the most prominent areas of cooperation is hydropower. In 2006, India and Bhutan signed a bilateral agreement on hydropower cooperation, supplemented by a protocol in 2009. For Bhutan, India provides access to Indian financing and energy markets, which is crucial for the country's socio-economic development. For example, Bhutan’s Basochhu and Nikachhu hydropower plants are connected to India’s power exchanges, allowing Bhutan to trade electricity. For India, Bhutan’s clean energy helps meet power demands sustainably, especially in the northeastern regions.

Support from India to Bhutan

India provides substantial support to Bhutan in various forms:

• Free Trade Regime: The India-Bhutan Agreement on Trade, Commerce, and Transit (1972), revised in 2016, ensures duty-free access for Bhutanese exports to third countries.
• Development Assistance: India is a key partner in Bhutan’s 13th Five-Year Plan (2024-2029) and supports the Economic Stimulus Programme, funding infrastructure projects to boost Bhutan's development.
• Security Assistance: India has played a crucial role as a net security provider. This was evident during the Doklam standoff in 2017, when India intervened to protect Bhutanese territory from Chinese encroachment.
• Infrastructure: Through Project DANTAK, India’s Border Roads Organisation (BRO) has built critical infrastructure in Bhutan, enhancing connectivity.
• Other Support: India offers scholarships for Bhutanese students and contributes around 50% of Bhutan’s foreign direct investment (FDI). India is also helping Bhutan implement the Digital Drukyul project for better digital connectivity.

Growing Concerns in India-Bhutan Relations

While relations have been positive, several emerging concerns need addressing:

• Increasing Proximity with China: Bhutan has increased interactions with China, exemplified by the 2023 visit of Bhutan’s Foreign Minister. China is Bhutan’s second-largest trade partner, accounting for over 25% of its trade, raising concerns in India.
• China’s Territorial Assertiveness: China’s “five-finger policy” considers Bhutan part of its territorial claims, especially regarding the Doklam Plateau. India fears Chinese territorial expansion in the region.
• Militant Groups: Bhutanese territory has been used by militant groups from India’s northeast, such as the United Liberation Front of Assam (ULFA), posing security risks.
• Stalled Projects: The BBIN Motor Vehicle Agreement has been delayed due to environmental concerns in Bhutan, hindering regional connectivity.