Indian Prime Minister’s Bhutan Visit: Agenda To Expand Bilateral Relations

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Prime Minister Narendra Modi paid a two-day state visit to Thimphu, at the invitation of Bhutan’s Prime Minister Dr Lotay Tshering. He was accompanied by a high level delegation. This was Mr. Modi’s first official visit to Bhutan after assuming office second time and the second visit to Bhutan in the last five years. After assuming office for the second consecutive term, the Indian Prime Minister had visited to Maldives and Sri Lanka. These three visits to neighbouring countries indicate that India is giving renewed thrust to its ‘neighbourhood first’ policy. 

The Bhutan visit happened while India is intensely engaged at the international level to neutralize Pakistan’s attempt to internationalize the Jammu and Kashmir (J&K) issue. Earlier, Bhutan had hailed India's decision to scrap the special status of J&K, by calling it bold, courageous and forward-looking. It had recognized that J&K was purely an internal matter of India.

Given the special relationship with India, Bhutan gave high-priority to the visit. Mr. Modi was received by his Bhutanese counterpart Dr. Tshering at the airport. Prime Minister Modi called upon The King and Queen of Bhutan. Mr. Modi described the relations as central pillar of India’s “neighbourhood first” policy

Indian Prime Minister held delegation level talks with Bhutanese Prime Minister. Steps to further expand India-Bhutan partnership across several sectors were discussed. Mr. Modi interacted with other senior politicians of Bhutan including Dr. Pema Gyamtsho, leader of the opposition. Prime Minister also delivered an address to the students at Royal University of Bhutan.

The visit is reflective of the new momentum in high-level exchanges between India and Bhutan. Earlier, Bhutan’s Prime Minister Tshering undertook his first overseas visit to India in December 2018. Immediately after formation of the new government in Delhi in May 2019, India’s External Affairs Minister Dr. S Jaishankar had visited Bhutan on his official tour.

Ever since diplomatic relationship was established in 1968 between Bhutan and India, it has emerged as one of the most successful neighourhood stories in South Asia. It is characterized by mutual trust, understanding and maturity. The India-Bhutan Friendship and Cooperation treaty signed in 1949 (updated and revised in February 2007) has remained as the pillar of the relationship. This has facilitated special arrangements like open border, security cooperation and deepening people-to-people relationships. Despite many asymmetries, both the countries are dependent on each other and acknowledge as equal partner in their endeavour towards economic growth, consolidation of democracy and regional peace. 

There are many bilateral institutional arrangements between the two countries in areas like water resources, trade and transit, economic cooperation, security and border management. India has been the largest trading partner (over 82 percent of Bhutan’s total import) and investor of Bhutan. It has developed four hydroelectricity projects with generating 2000 MW electricity.

This visit saw the signing of ten MoUs in various sectors including space research, power purchase agreement and cooperation on technological education. Besides this both the leaders jointly inaugurated the Mangdechhu hydel project, earth station of South Asia satellite and introduction of RuPay card in Bhutan. 

Prime Minisater Modi also announced that the supply of LPG from India is being increased from 700 to 1000 MT per month. Under the SAARC Currency Swap Framework, an additional $ 100 million would be available to Bhutan. Mr. Modi assured his Bhutanese counterpart that all possible help would be provided by India in realizing Dr. Tshering’s dream of a multi-disciplinary super-specialty hospital in Bhutan.

The Indian Prime Ministerial visit was to expand the diplomatic relations and further consolidate the existing ties between both countries. The two Prime Ministers discussed a wide range of issues and new mechanisms to advance the bilateral relations further. During the one-on-one meeting, both leaders discussed about cooperation on climate change, infrastructure, security and strategic issues, India’s technical and economic assistance to Bhutan’s five year plans and major regional issues.




Script: Dr. Nihar R Nayak, Analyst on Bhutan

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