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BHUTAN e:
• Bhutan is totally landlocked and located in the Eastern Himalayas
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• It is bordered by Tibet Autonomous Region of China in the north, the Sikkim
state of India and the Chumbi Valley of Tibet in the west, the Arunachal Pradesh
state of India in the east and the Assam state of India in the south.
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• The country's landscape ranges from lush subtropical plains in the south to the
sub-alpine Himalayan mountains in the north.
 An Intro to Bhutan-India relations

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• The basic framework of India- Bhutan
bilateral relations is the Treaty of

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Friendship and Cooperation signed in

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1949 between the two countries and

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revised in February 2007.
• Diplomatic relations between India and
Bhutan were established in 1968.
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India is Bhutan's largest trading partner.
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• India is the most popular educational
destination for Bhutanese students.
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• Buffer state.
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 Treaty or Friendship - 1949

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● On August 8, 1949, Bhutan and India signed the Treaty of

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Friendship, calling for peace between the two nations
● The treaty provides for non-interference in each other’s internal

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affairs

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● Bhutan agreed to let India guide its foreign policy and decided

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that both nations would consult each other closely on foreign
and defense affairs.
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 It provided for close cooperation with each
other on issues relating to their national

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interests

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According to it, neither Government shall

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Treaty or allow the use of its territory for activities

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harmful to the nationl security and interest
Friendship -

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of the other
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The treaty provides for perpetual peace and
friendship, free trade and commerce, and
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equal justice to each other’s citizens
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 Doklam Standoff 2017

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• Doklam standoff refers to the military border standoff between the Indian armed

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forces and the People's Liberation Army of China over Chinese construction of a
road in Doklam.

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• On 16 June 2017 Chinese troops with construction vehicles and road-building
equipment began extending an existing road southward in Doklam, a territory

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which is claimed by both China as well as India's ally Bhutan.

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• On 18 June 2017, around 270 Indian troops, with weapons and two bulldozers,
entered Doklam to stop the Chinese troops from constructing the road.
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the disputed territory e:
On 29 June 2017, Bhutan protested to China against the construction of a road in
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• On 28 August, both India and China announced that they had withdrawn all their
troops from the face-off site in Doklam.
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 PM Modi chose Bhutan as his first
foreign destination when he

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started his tenure in 2014.

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He had inaugurated the Supreme

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PM visit Court Complex in Bhutan which

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2014

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was funded by India.

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During the visit several bilateral
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agreements were signed between
both countries.
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 PM’s visit to Bhutan 2019

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• PM Modi visited Bhutan in August 2019
to explore ways to further strengthen

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and diversify bilateral partnership

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across several sectors

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• This was PM Modi's 2nd visit to Bhutan
and 1st since his re-election in May 2019
• India and Bhutan signed 10
Memorandum of Understanding e:
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(MoUs) to diversify the friendship in
fields of space research, aviation, IT,
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power, education, science, technology

and legal education
lndia Bhutan cooperation

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• India continues to be the largest trade and development
partner of Bhutan

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• India has been extending financial assistance to Bhutan Five

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Year Plans

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• Hydropower is one of the main pillars of bilateral cooperation
Three Hydropower projects developed with Indian assistance
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have already been completed with ten more projects in line
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up.
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 • The new bilateral Agreement on
Trade, Commerce and Transit
between India and Bhutan came into

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force from July 2017

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• It provides for a free trade regime
Agreement on between the territories of India and

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Trade, Bhutan

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Commerce and • It also provides for duty-free transit

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of Bhutanese merchandise for trade
Transit -2016 with third countries
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•
countries will continue to be
transacted in Bhutanese Ngultrums
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and Indian Rupees

 Project Dantak 2018

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● The Border Roads Organization, which helps

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build Bhutanese roads under Project Dantak, in
July 2018 decided to make reflective stickers on
the road sides and railings, in shades of the

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Indian tricolour.

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● This move raised red flags among the

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Bhutanese on social media.
● Citizens were worried that this was an attempt
by India to impose its flag on their countryside.
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and white.
● The incident was a blip in India-Bhutan relations
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and a clear indicator of heightened sensitivities

in the Himalayan kingdom
 • Over 60 percent of government
expenditure in Bhutan goes into
imports of goods from India.

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• The impact of this is not only been

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lndia's
found detrimental to Bhutan's
sustainable growth but also unsuitable
for a healthy bilateral relation with

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Debt Trap
India

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• India's stranglehold over Bhutan's

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economy along with unfair business

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practices often leads to economic crisis
such as the debt and rupee crunch that
finally trigger political hostility
• The fundamentals of economic
dependency including the hydropower
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projects are now being called India's

debt trap for Bhutan
 China's increasing

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presence in Bhutan.
Security

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Concerns

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Use of Bhutan as safe
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New territory
of Bhutan

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claimed by

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China
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 Further Insights

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• China claims that the boundary
between China and Bhutan has
never been delimited. It has had

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disputes over the western, central

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and now eastern sectors of Bhutan.

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• Bhutan completely rejected this
claim and has conveyed its position
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New Delhi.
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 • Maitri Initiative: Bhutan is the first country to receive the
Covishield vaccines under India's Vaccine Maitri Initiative.
STEM: Two countries are collaborating closely on STEM

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•
through regular placement of Bhutanese youth in our IITs.

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Financial connectivity: It has touched new heights through
Recent •
the launch of the RuPay card and the BHIM app.
developments

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• Start-Up ecosystem: Both nations successfully linked up the
Start-Up systems of our two countries via structured
in India-

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workshops; through the National Knowledge Network &
the Druk-REN connection.

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Bhutan • E-Library project: It has opened up new vistas of education
Relations and knowledge sharing between two countries.

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• India Bhutan Satellite: It is due to launch into space shortly.
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• Scholarships: There are many scholarships available for
undergraduate and postgraduate studies for Bhutanese
students by India, namely Nehru-Wangchuck
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Scholarships, Ambassador’s Scholarship etc.

 • China’s new territorial claim is a
part of the larger Chinese tactics of
putting pressure on India’s smaller

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neighbours, to punish them for

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any closeness to India.
Example: Doklam standoff 2017.

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India’s role
• After the India-Bhutan Friendship
Treaty of 2007, Indian military is

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virtually responsible for

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protecting Bhutan from the kind of
external threat that the Chinese
e: military poses.
The treaty of 2007 makes it
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•
obligatory that no nations territory
is used for activities harmful to
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each others.
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