27 August 2020, NIICE Commentary 5908
Chokey Namgyal Bhutia

Sharing many aspects in common with each other, India and Bhutan formally established their bilateral relationship in the year 1968, with the appointment of a special officer of government of India to Bhutan and with the inauguration of Indian embassy in Bhutan on 14 May 1968.

Since the ancient period, Bhutan has always been very cautious towards the protection of its sovereignty, and cultural preservation, which led Bhutan to opt for self isolation in its foreign policy affairs. However, within no time Bhutan was compelled for its own security interest and the drive for socio-economic development to give up the policy of isolation and look towards  its neighbour India for engagement. On India’s part it was open to the relationship with Bhutan, considering Bhutan’s strategic location and the traditional and cultural ties of friendship it held with Bhutan.

The areas of bilateral cooperation between  India and Bhutan has been in plethora, ranging from economic relations and development assistance, trade and investment relations, social and cultural exchanges, all of which have paved the way for the strong ties between them. India has number of times wholly funded the five year plans of Bhutan, Indian defence services has a contribution in training the Bhutanese army and the country has extensively taken the initiative of road construction in Bhutan through the project Dantak, under BRO.  India has also invested heavily in the major hydro power projects in Bhutan such as Chhukha project, the Tala project and others.

On the international platform, India and Bhutan have been supportive of each other; India helped Bhutan with the UN membership in 1971. Bhutan has supported India on issues of the Comprehensive Nuclear-Test-Ban Treaty (CTBT), India’s permanent seat in Security Council, etc. Besides, people-to-people interaction on formal and informal level has further enhanced their relationship.

The ties became stronger with the amendment of the 1949 Treaty of Peace and Friendship in 2007 under the UPA government. When BJP government came to power in 2014, India came out with its neighbourhood policy, directed towards the South Asian nations. In lieu of the policy, the first official visit made by Modi as Prime Minister was to Bhutan. When the Doklam standoff took place in 2017, Bhutan and India stood united. The existent friendly ties between India and Bhutan becomes even more important for India especially in the recent times, considering what is happening in the region.

India, being one of the most dominant countries in South Asia in terms of size, economy and location has almost lost its regional space in South Asia vis-à-vis China. Mindful of India’s already diminishing position in South Asia, China has successfully taken the task of isolating and encircling India in South Asia. Having great material and financial resources, China has been able to come out as a more lucrative partner for the other smaller South Asians countries in comparison to India.

Today, China’s growing influence in South Asia has major irritants for India’s security and strategic affairs from all the sides as India shares borders with all the South Asian countries. The gigantic Chinese ‘Belt and Road Initiative’ will further make China a more attractive partner in South Asia and this would further pose security concerns for India, especially through the CPEC corridor, the Tans-Himalayan corridor. Today, in South Asia, Bhutan is the sole country who has not joined China’s BRI project whereas all the other countries have become signatories to the project.

What happened in Doklam, Galwan makes the role neighbors of India even more important for her security, and considering most of the South Asian countries have turned away from India, Bhutan becomes even more imperative for India especially keeping in mind that is located between India and China. Thus, how can India keep working with Bhutan so that in future Bhutan does not change its stand, for which China has been constantly pressurizing Bhutan especially through their border talks.

Amidst the India-China border conflict, the diminishing position of India in South Asia, India is in a constant effort to further revamp its relation with Bhutan. In 2016, the India Bhutan agreement on trade, commerce and transit was signed, which provided for free trade and commerce and 21 entry and exit trade points between the two countries, which was more favorable for Bhutan considering its landlocked status. On June 2020, India and Bhutan opened a new trade route between Jaigoan, India and Pasakha, Bhutan. This trade route will help to further boost their trade relations. India and Bhutan were  also working on their railway’s links.

India is aware of the existent 470 kilometers long border between Bhutan and China. China’s encirclement in South Asia and China’s constant effort to woo Bhutan away from India for its strategic purpose, through Bhutan, China will have an easy access to chicken neck corridor of India, the Chumbi valley in Sikkim, which are all the strategic points of India.  So, India knows the imperativeness of thwarting China’s influence in Bhutan.

With the new shape of the geo politics in South Asian region, India’s failed neighborhood policy such as India’s economic blockade in Nepal or the National Registry of Citizens, much to the dislike of her neighbors, the reality is that Bhutan is India closest neighbor today. Therefore Bhutan is significant for India, due to its geographic location, its status as a buffer zone between India and China.

Bhutan has stood by India from 1962 to Doklam of 2017, in spite of its deep awareness of the changing strategic situation in the region. But the main questions for India to ponder upon is how long, would Bhutan be able to take India’s stand, after all Bhutan is a small underdeveloped country, with lack of services, infrastructure, and proper socio-economic development. Would China, in future be able to emerge as a lucrative economic partner for Bhutan, and if so, would Bhutan like always be able to sideline China, considering the fact that neighbors cannot be avoided for long?

If so, India’s geo strategic position would be further put at more risk. Therefore in the ongoing situation, keeping Bhutan by its side has become very important for India’s foreign policy. India should take any socio economic and diplomatic step possible to keep Bhutan on its ambit, like it recently did with the new trade route. India should be able to make Bhutan contemplate on their embarkment upon the road of model friendship and cooperation, with peace and consensus, even amidst hostility and conflicts in and around the region.

Chokey Namgyal Bhutia is a PhD Candidate at Center for South Asian Studies, Jawaharlal Nehru University, India.