Date: 08/04/2023

Relevance: GS-2: India and its Neighbourhood- Relations.

Key Phrases: India-Bhutan ties, lines of credit, cross-border rail link, Hydropower, Basochhu power project, high youth unemployment, brain drain, Package Deal, Boundary Talks with China, hyper-nationalism.

Why in News?

• The recent visit of Bhutan’s fifth king, Jigme Khesar Namgyel Wangchuck, to India has brought to the forefront the importance of the relationship between these two countries.
• The visit had both substance and subtext, with a joint statement outlining various areas of cooperation and collaboration, and concerns over Bhutan's boundary talks with China.

Cooperation in Many Areas:

• Cooperation in Development Plans and Credit:
  • India and Bhutan have agreed to cooperate in many areas, including supporting Bhutan’s next development plans and extending additional standby lines of credit.
• Boosting Hydropower:
  • Hydropower, which is the cornerstone of India-Bhutan ties, received a boost, with the government agreeing to consider Bhutanese requests for expediting long-delayed projects such as Sankosh and Punatsangchhu.
  • The tariff on Chhukha, the oldest project, will also be revised upwards, and power will be bought from the Basochhu power project.
• New Infrastructure Projects:
  • New infrastructure projects were announced during the visit, including an integrated checkpoint for trucks at Jaigaon, a checkpoint for third-country nationals, and a cross-border rail link from Kokrajhar to Gelephu.
• Potential Future Partnerships:
  • The two countries also discussed potential future partnerships in areas such as space research, skilling, startups, and STEM education, and a new Internet gateway for Bhutan, in keeping with the Bhutanese king’s new “Transform Initiative”.
• Youth Unemployment and Brain Drain:
  • The Bhutanese government is also worried about the number of Bhutanese migrating overseas due to the high youth unemployment rate in 2021, which reached 21%.
  • India too needs to pay more attention to this brain drain, as in the past, Bhutan’s elite would have been educated in India.
  • India stands to lose its edge in Bhutanese policy-making and public narrative, and thus the projects outlined stand to benefit both Delhi and Thimphu in keeping the talent within.

Boundary Talks with China:

• Bhutan's Prime Minister recently mentioned in an interview with a European paper about the progress made in China-Bhutan boundary talks.
• According to him, Bhutan and China hope to resolve their northern boundary dispute in the next "1-2 meetings."
• Although this announcement has many positive implications for Bhutan, it also raises concerns in India.
• China's Demarcation Offer as a "Package Deal":
  • The Chinese government has offered the demarcation of the northern boundary as part of a "package deal" with Doklam, which is near the trijunction with India and strategically significant due to its proximity to India's Siliguri corridor.
  • This development should be a cause of concern for India as any change in the area surrounding the trijunction would affect India's interests.
• India's Concerns and Need for Clarity:
  • India has expressed concerns about any change in the area surrounding the trijunction, and there needs to be full clarity on the issue.
  • While Bhutan has assured that all talks related to the trijunction would be "trilateral," India's concerns extend beyond that.
  • It is essential for New Delhi not to allow hyper-nationalism and its antagonism with China to pressure Bhutan.
  • India's time-tested ties with Bhutan have always focused on the prosperity of both countries.
• Importance of Anticipating Each Other's Interests:
  • The long-standing partnership between India and Bhutan is built on a foundation of anticipating each other's interests before taking any steps that could affect their relationship.
  • Therefore, India should not allow any changes in the region to impact their relationship with Bhutan.
  • Instead, India should focus on maintaining their partnership and continue to prioritize Bhutan's interests.

Conclusion:

• The visit of Bhutan’s king to India had both substance and subtext. The cooperation and collaboration between the two countries in various areas will benefit both countries, but the subtext of the visit, particularly the boundary talks with China, must be handled with care.
• India needs to ensure that it does not put undue pressure on Bhutan, and the two countries must continue to anticipate each other’s interests before making any decisions that could affect their partnership.

Source: The Hindu BL

Mains Question:

Q. How should India balance its strategic interests with Bhutan and its concerns over China's expanding influence in the region? Discuss with reference to recent developments in India-Bhutan ties and China-Bhutan boundary talks.