International Relations

Answer:
Bhutan has maintained a special relationship with India since the signing of the Treaty of Friendship and Cooperation in 1949. Though the two neighbours have a close civilizational, cultural and economic relationship, there are some challenges in the relationship, as given below:

• Chinese influence: China has disputes regarding many territorial areas with Bhutan. Dominance in the region by China can threaten the Siliguri Corridor, a narrow stretch that connects the Indian mainland with the North-Eastern states.
• Issues in hydropower trade: India’s imports of hydropower electricity from Bhutan that is cheaper than the market prices, changes in power purchasing policy, refusal to admit Bhutan into the National Power Grid, etc. have created a rift in the relationship.
• Economic issues: Use of Indian labour and goods, rather than local, for projects executed by India in Bhutan has invited criticism from Bhutan. Also, loans, grants and lines of credit by India are deemed economic imperialism by some critics in Bhutan.
• Delay in project completion: India has failed to deliver projects on time and in the volumes expected, and this has increased Bhutan’s costs and the size of its debts to India.

Despite these challenges, recent developments suggest that continuity still looms large in the Indo-Bhutan relationship:

• India has extended the Standby Credit Facility to Bhutan at a reduced interest rate and extended the settlement period, and provided an additional currency swap support of USD 200 million.
• India has already released about 90 percent of committed plan assistance to Bhutan under its 12th Five Year Plan. India has also agreed to step up support for Bhutan’s 13th Five Year Plan.
• Both sides expressed satisfaction that projects totalling 2136 MW, which have been jointly set up, are functioning well. Recently, India handed over 720 MW Mangdechhu HEP to Bhutan.
  • India also agreed to positively consider Bhutan’s request for sale of power into the Indian Energy Exchange.
• India agreed to extend the energy partnership and will provide technical and financial assistance in the area of non-hydro renewables, such as solar and wind as well as in green initiatives for e-mobility.
• India has assured supply of critical commodities to Bhutan such as petroleum, fertilizers, and coal and is also considering setting up the first Integrated Check Post along the India-Bhutan border.
• Exceptional progress has been made in the space sector cooperation, including the recent launch of the first satellite jointly developed by India and Bhutan and the inauguration of the satellite’s ground earth station in Thimphu.

The relationship between India and Bhutan is based on the pillars of trust, goodwill and mutual understanding. It is necessary to address the concerns of Bhutan, specifically related to fulfilling the aspirations of Bhutanese youth in order to fully realise the potential of the longstanding development partnership between the two countries.

Answer: India’s foreign policy priorities, reflected in its “Act East’ and ‘Neighbourhood First policies, recognize the significance of the North-East region as a vibrant link to the country’s eastern neighbours. Geo-strategic advantages of the North-Eastern region of India:

• It shares 5,812 km of international boundaries with the neighbouring countries of Myanmar, China, Bangladesh, Nepal, and Bhutan.
• It is landlocked; seven of the eight states are linked to the rest of India only through the Siliguri Corridor in North Bengal, which is flanked by Nepal in the north and Bangladesh in the south.
• It is India’s land bridge to South-East Asia as it offers a land route for trade and cultural exchanges with countries like Myanmar, Thailand, Laos, and Cambodia.
• It is rich in natural resources, including coal, oil, and natural gas. The region is also home to a number of important international trans-boundary rivers.
• It is marked by socio-cultural diversity, which has historical links with people in neighbouring countries. This offers a unique advantage in terms of cultural diplomacy and people-to-people exchanges.

However, various challenges need to be addressed before the potential of the region as a pivotal connecting space can be utilised, such as:

• Internal challenges:
  • Mainstream political apathy: Historically, the North-East region has been an isolated and peripheral unit and has long remained in the margins of India’s mainstream political imagination of growth, development, and welfare.
  • Violence and unrest: Development in the region has also been impeded by political violence in the region, ethnic conflicts, insurgency movements.
  • Difficult terrain: Border roads as well as railways networks are seldom designed to accommodate the needs of large-scale transnational commercial endeavours due to the difficult terrain in the region.
  • Disasters: As the region witnesses floods and landslides in the Brahmaputra and Barak Valleys of Assam, considerable strain is exerted on the economy of the North-Eastern states.
  • Government policies: Although India has had amicable relations with Bangladesh and Myanmar, developments such as the Citizenship Amendment Act, National Register of Citizens (NRC), etc. threaten the relationship.
• External challenges:
  • Illegal cross-border activities: There is rampant narcotics trading, weaponry trading and trafficking of rare animals and poaching in the region.
    • Moreover, the linguistic and cultural homogeneity of the people on either side of the border makes it difficult to track those involved in illegal trade.
• Issues with Myanmar: The connectivity projects with Myanmar such as the Kaladan Multimodal Transport Transit Project (2008) and the India-Myanmar-Thailand (IMT) Trilateral Highway (2002) are still not fully operationalized because of the political turmoil in Myanmar and intense conflict in the Chin and Rakhine states.
• Issues in motor vehicles agreement: Bhutan has backed out of the Bangladesh, Bhutan, India and Nepal (BBIN) Motor Vehicles Agreement (MVA) citing environmental concerns over the likely increase in road traffic.
• The signing of India, Myanmar and Thailand (IMT) is also held up, as Thailand is concerned that the MVA could put local players at a disadvantage.
• Global trade convention not signed by all: India has ratified the TIR (International Road Transport) Convention, which facilitates global trade, but Bangladesh and Myanmar have not, thereby leading to issues in enhancing international trade of goods.

However, the cooperation from BIMSTEC and SASEC countries and Japan can help tackle the above challenges and take advantage of the strategic location of the North-Eastern region and boost economic growth in the region.