By DK Giri
Prime Minister Narendra Modi was on a two-day visit to the Himalayan kingdom of Bhutan. This was a short visit with long-term objectives. Bhutan is strategically critical for India as a buffer against China. The key highlight of the visit was the inauguration of 1020MW Punatsangchhu-II Hydro Electric project. Both countries agreed to resume work on the Punatsangchhu-I and complete it soon. They welcomed the electricity export from Punatsangchhu to India. Bhutan gratefully acknowledged India’s contribution of INR 40b for the energy projects. Having done the ceremonial parts, Modi, as usual, got down to business. He promised continued support for Bhutan’s economic growth and sustainability. He especially declared support for Bhutan’s 13th five-year plan with an economic stimulus programme that marked India’s commitment to helping Bhutan secure key development priorities and promote sustainable growth across sectors. He also expressed support for King Wangchuk’s noble vision for the Gelephu Mindfulness City. Modi confirmed that such projects align with India’s Act East Policy. Modi announced that immigration check post at Hathisar in Assam will be set up to facilitate easy movement of investors and visitors to this promising project at Gelephu. The King appreciated India’s liberal assistance in building Gyalung academics. Bhutan acknowledged the consecration of the Royal Bhutan Temple in Rajgir, Bihar and India’s decision to allocate land in Varanasi for Bhutanese temple and guest house. According to the Indian delegation, accompanying Modi, the phase-II of UPI will allow Bhutanese travelers to make payments in India by using local mobile apps by scanning the QR codes. Three MoUs were signed during the visit: First was on cooperation in renewable energy, second cooperation in health and medicine and third, institutional link ages between the Pema Secretariat, Bhutan and National Institute of Mental Health and Neuro Sciences (NIMHANS), India. MoUs for two railway links, one, from Gelephu to Kokrajhar and second, from Samtse, Bhutan to Banarhart, West Bengal signed in Septem ber this year were reviewed. Also, cooperation in Fertilizer, STEM, Fintech and Space was also reviewed. India-Bhutan relations have been marked by historical depth and enduring friendship. It started with the Fourth King Jigme Singye Wangchuk ascending the thrown at the age of 16 in 1972. Following his father’s policy of close ties with India, he planned his country’s economy on the Indian model of Planning Commission. He constituted the Planning Commission for framing Five-Year Plans. With Indian support, he designed the First Five-Year Plan after taking over the reins of the country. He aligned Bhutan’s currency (Ngultrum) with Indian Rupee in 1974 to facilitate bilateral trade and financial integration. On diplomatic sector, he aligned his foreign policy with India’s; for all external initiatives, he kept India informed. Bhutan joined UN in 1971 and SAARC in 1985 as a Founding Member. Bhutan conducted border dialogues with China in consultant with Indian leadership. This process was followed on the basis of India-Bhutan Treaty (1949), which provided that Bhutan would be ‘guided by India’ in mutual cooperation and sovereign equality.
However, this treaty was replaced by India-Bhutan Friendship Treaty (2007). On security, India supported Bhutan in eliminating insurgent camps from Bhutanese soil in a special project called Operation All Clear (2003). On economic relations, hydropower cooperation has been the backbone of Bhutanese economy. With India’s support consisting of a grant loan model (60:40), these projects became the bedrock of Bhutan’s export revenue and India’s clean energy import. In this visit under discussion, Prime Minister deepened the hydropower cooperation. Modi announced 4,000 crore INR on a concessional credit line for energy projects. He reaffirmed another 10,000 crore INR assistance for Bhutan’s 13th Five-Year Plan for development across multiple sectors that include infrastructure, agriculture, finance, and healthcare. The cultural ties have been a significant component of India-Bhutan bilateral relations. Bhutan has rich Buddhist heritage.
Another rich legacy of the Fourth King is the concept of Gross National Happiness (GNH), which is recognised globally as a commendable philosophy. Bhutan visit by Indian Prime Minister holds a critical security dimension. Bhutan buffers India and China. While Bhutan has intimate ties with India, it has territorial disputes with China. In 2017, Doklam’s standoff highlighted the strategic importance of Bhutan as India militarily intervened to prevent China from building a road in a disputed area between China and Bhutan. Bhutan allowed Indian troops to enter its territory to resist Chinese incursions in Doklam. The Prime Minister’s visit, though, appears to be a goodwill step, rejuvenated the multi-dimensional India-Bhutan partnership. Cooperation in hydropower, connectivity, innovation, and spiritual bonds constitutes a model of mutual trust, respect and shared prosperity. What is more, Bhutan, for its strategic location, is critical for India; hence the importance of maintaining the model.
The writer is Professor of Practice, NIIS Group of Institutions
