Poonam Sharma
Prime Minister Narendra Modi’s just-concluded visit to Bhutan represents another milestone in the longstanding and strategically pivotal relationship between these two Himalayan neighbors. Against a backdrop in which China’s muscle-flexing diplomacy is inexorably rewriting the geopolitics of the region, the visit was not only a reiteration of India’s role as Bhutan’s most trusted partner but also underlined the deep historical foundations that have shaped their special ties over more than seven decades.
A Relationship Rooted in History
The partnership between India and Bhutan has been described as one of the most stable and time-tested relationships in South Asia. At its very inception, in 1949, independent India and the Kingdom of Bhutan inked the Treaty of Friendship. The agreement established a framework of mutual respect, cooperation, and non-interference, while committing India to guide Bhutan with regard to external affairs and security matters. Far from being a relationship of dominance, the arrangement evolved over the decades to reflect Bhutan’s sovereignty and India’s steadfast support for its development.
In 2007, the treaty was revised to further modernize the partnership—removing the earlier clause requiring Bhutan to seek India’s guidance on foreign policy. The amendment was more than symbolic; it was a sign that India had confidence in independent decision-making by Bhutan and that Delhi was willing to treat Thimphu as an equal stakeholder on regional issues.
Decades of Development Partnership
Since the 1960s, India has been Bhutan’s largest development partner, and its presence has been vital in constructing roads, schools, hospitals, and hydropower projects. Hydropower, in particular, has emerged as the backbone of Bhutan’s economy and a central pillar of India-Bhutan cooperation. Joint ventures, such as the Tala, Chukha, Kurichhu, and Mangdechhu hydropower projects, have not only energized Bhutan’s growth but also strengthened India’s energy security through clean electricity imports.
This longstanding collaboration has been used as a model of partnership, based on transparency, trust, and mutual benefit-an approach Bhutan values deeply, especially in contrast to China’s opaque lending practices seen across the region.
Modi’s Visit: A Renewed Vision for a Shared Future
Prime Minister Modi’s latest visit only underpins his government’s commitment to this exceptional partnership. Announcing a ₹4,000 crore concessional line of credit, India reaffirmed its support for Bhutan’s economic transformation, infrastructure expansion, and energy ambitions.
The Punatsangchhu-II hydroelectric project was one of the important projects that he inaugurated, marking a key milestone in adding more than 1,000 MW to Bhutan’s capacity. More than an energy generator, this is symbolic of India’s sustained contribution toward Bhutan’s growth and the trust that underpins every joint undertaking.
Both sides also pushed forward discussions on new railway connectivity between them. Proposed links like Kokrajhar–Gelephu and Banarhat–Samtse could integrate Bhutan more closely with the Indian market, boost trade, and open new avenues for tourism and economic opportunities. For Bhutan, which has no rail network of its own, these connections could be transformative.
China’s Shadow Over Bhutan—and Why India Still Matters
Over the past several years, China has intensified its outreach to Bhutan, offering investments in infrastructure, expanding its diplomatic overtures, and attempting to influence border negotiations. The Doklam standoff in 2017, sparked by Chinese efforts to extend a road into territory claimed by Bhutan, dramatically brought into focus how Beijing’s ambitions could imperil Bhutan’s strategic security—and India’s.
The stakes are, therefore, extremely high for Bhutan, which shares a 470-kilometre undefined border with China. Chinese proposals for land swaps and faster border settlements often come with geopolitical strings attached. Many in Thimphu remain wary of falling into the trap of debt-driven diplomacy that has affected several South Asian nations.
Against this backdrop, a visit by PM Modi sends an unmistakable message: India remains Bhutan’s most reliable partner-not just for development but also for the safeguarding of regional stability. This emphasis on transparent financing, people-centric development, and respect for Bhutan’s sovereignty sharply contrasts with China’s transactional, strategic approach.
A Partnership Anchored in Trust
Beyond geopolitics and infrastructure, India and Bhutan share an abiding cultural and civilizational affinity. From Buddhism to cross-border communities, from academic exchanges to open borders allowing seamless travel, the relationship is nourished by much more than statecraft. People-to-people linkages, student scholarships, and cooperation in education, health, space research, and digital infrastructure show a partnership growing with time.
PM Modi’s visit also reaffirmed the commitment of India to Bhutan’s vision for turning itself into a high-income, green, and technologically advanced nation by 2034 outlined by Bhutan’s King Jigme Khesar Namgyel Wangchuck.
Looking Ahead As China continues to watch Bhutan’s moves with strategic interest, the message from Thimphu is unmistakable: Bhutan cherishes independence, stability, and dependable partnerships. India remains its closest friend through the steadfast continuity of engagement and respect for Bhutan’s priorities. Modi’s visit, therefore, represents more than a diplomatic engagement; it is a continuation of the historic bond built on mutual respect and common aspirations. In this increasingly geopolitically rivalrous region, the friendship between India and Bhutan stands as testimony to how trust, transparency, and shared values can sustain enduring friendships.
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