News Excerpt:
King of Bhutan Jigme Khesar Namgyel Wangchuk is on a visit to India. He also made his maiden three-day tour to the state of Assam.

Importance of his maiden visit to Assam:

• Assam and Bhutan have traditionally shared peaceful and warm ties.
• The relations were hindered in the 1990s when insurgent groups from Assam sought shelter from a crackdown by the Indian military and set up operational camps in the Bhutanese territory. 
• On 15th December 2003, Bhutan undertook a successful military operation “Operation All Clear” against those militants.
• Bhutan cited a threat to:
  • Its Sovereignty and National Security: It was felt that the insurgent groups would supply arms to the ethnic Nepalese Lhotshampas, which could fuel an ethnic insurgency in southern Bhutan.

• • Excellent bilateral relations with India: India had expressed displeasure with the working of militant groups from Bhutanese soil.

Indo-Bhutan Relations 

Cultural:

• India and Bhutan's ties have common roots in Buddhism. India being the birthplace of Lord Buddha has many significant Buddhist sites like Nalanda, Bodh Gaya, and Rajgir. These are visited frequently by the Bhutanese monks. 
• The two countries share an open border with regular exchange of travelers in both directions for work, tourism, shopping, medical care, etc.

Political:

• India and Bhutan officially marked the beginning of their diplomatic relations by signing the Treaty of Friendship and Cooperation in 1949 which was revised in 2007. Both countries have agreed to establish peace and expand economic cooperation. 
• Regular high-level visits and political exchanges at the ministerial level by the Indian Prime Minister and the King of Bhutan have sustained and strengthened the bilateral relationship.
• In 2017, during the Doklam crisis, Bhutan gave access to its territory to Indian army personnel to resist Chinese incursions. 
• Bhutan also conferred its Highest Civilian Award on PM Narendra Modi in 2021 recognizing the Indian PM’s outstanding contribution to strengthening Indo-Bhutan Friendship. 

Economic:

• Since the 1960s India has been a front-runner in providing financial assistance to Bhutan. India has also economically supported Bhutan in launching its 5-year plans. 
• Bhutan also receives economic aid in agriculture and irrigation development, health, industrial development, road transport, energy, and education.

• The two countries signed an Agreement on Trade and Commerce in 1972 and it was revised in 2016 to promote and boost a free trade regime.

• India is Bhutan’s largest trading partner. In 2021-22, India's bilateral trade with Bhutan exceeded $1422 million.
• During the COVID pandemic, Bhutan was the first country to receive Indian-made Covishield Vaccines under the Vaccine Maitri initiative. Almost 550,000 doses were given to Bhutan as a gift.

• Hydropower cooperation: This is one of the most vital areas of cooperation, a significant amount of revenue is generated through hydropower projects. These hydroelectric projects (HEPs) are covered under the 2006 bilateral agreement for cooperation.  

• • There are 4 HEPs operational which are currently supplying electricity to India namely Kurrichhu, Tala,  Mangdechchu, and Chukha supplying a total of 2136 MW of electricity.
  •  2 HEPs:  Punatsangchhu-I and Punatsangchhu-II are under construction.

Social:

• Education: Almost 1000 Scholarships are provided annually to Bhutanese students in Indian Universities in various disciplines like Engineering, Medicine, etc.
• Indian Diaspora: Approximately 50,000 Indians are currently working in Bhutan contributing significantly in the fields of Education, Arts, Health, etc. 

New Areas of Cooperation:

• Space: Both collaborated on the joint development of India- Bhutan SAT (small satellite). It would help manage natural resources in Bhutan.
• Fintech: Launching of RuPay Card to enable full interoperability. Bhutan was the second country to launch India’s BHIM app to promote cashless payment.
• E-learning: Integrating Bhutan’s DrukRen with India’s National Knowledge Network to create easy information access to Universities, Research Institutions, etc of both nations. 

India’s Concern: 

Today, Bhutan maintains no official diplomatic relations with any of the P5 countries i.e. the five permanent members of the United Nations Security Council (UNSC). Bhutan’s increasing proximity to China has created some troubles in the Indo-Bhutan relationship. The concerns include:

• The threat of losing Doklam’s strategic significance: Doklam is located on the tri-junction of India, Bhutan, and China. Doklam lies next to the Siliguri Corridor commonly referred to as the “Chicken’s Neck” a 22km corridor connecting India to the Northeast region. It serves as a vital link between India, Tibet, Nepal, Bhutan and Bangladesh. If lost, it will provide a military advantage to China over any conflict with India.

• Threat to India’s Northeast: Chinese claim to Satkeng Wildlife Sanctuary lying in the Eastern part of Bhutan close to Arunachal Pradesh which China views as a part of its South Tibet. This creates an added pressure point on India and can potentially lead to more aggressive Chinese actions in Arunachal Pradesh.
• The threat of losing a friendly ally in India’s neighborhood: India is Bhutan's largest trading partner and India is in a trade surplus with Bhutan. China’s immense economic aid and diplomatic ties with Bhutan could weaken India’s influence in the South Asian region. 

Way Forward 

• Diplomacy and Engagement: India can have frequent high-level talks with Bhutan to understand its evolving foreign policy goals and concerns. India should continue supporting Bhutan's independence and address its development needs so that Bhutan does not perceive India as a threat.
• Enhanced Economic Aid: India can offer more economic support, trade benefits, and infrastructure development to prevent Bhutan from falling into China’s debt trap policy.
• Strengthening Military ties: India can focus on removing existing bottlenecks in the relationship and strengthening defense and security ties with Bhutan to ensure safety and countering potential Chinese influence.
• Regional Cooperation: India and Bhutan are a part of several multilateral organizations like the South Asian Association for Regional Cooperation (SAARC), the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), and Bangladesh, Bhutan, India, Nepal (BBIN). India can work on improving regional cooperation mechanisms to ensure Bhutan’s interests are well represented in regional forums.

Mains PYQ

Q. Do you think that BIMSTEC is a parallel organisation like the SAARC? What are the similarities and dissimilarities between the two? How are Indian foreign policy objectives realized by forming this new organisation? (UPSC 2022)

 Q. Border management is a complex task due to difficult terrain and hostile relations with some countries. Elucidate the challenges and strategies for effective border management. (UPSC 2016)

 Q. “Increasing cross-border terrorist attacks in India and growing interference in the internal affairs of several member-states by Pakistan are not conducive for the future of SAARC (South Asian Association for Regional Cooperation).” Explain with suitable examples. (UPSC 2016)