Indian Political Science Association

BHUTAN
Author(s): Juhi Srivastava
Source: The Indian Journal of Political Science , July - September, 2015, Vol. 76, No. 3,
SPECIAL ISSUE (July - September, 2015), pp. 665-669
Published by: Indian Political Science Association

Stable URL: https://www.jstor.org/stable/10.2307/26534909

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The Indian Journal of Political Science
Vol. LXXVI, No. 3, July-September, 2015, pp. 665-669 (ISSN NO. 0019-5510)
BHUTAN: A SUCCESS STORY FOR INDIA
1. Introduction: Bilateral relations between
India, world’s largest and vibrant democracy and
Bhutan, world’s youngest democracy, is a shining
example of friendship between two neighbours.
Despite its close affinity with Tibet (China) in terms
of religion, culture, language and history, Bhutan
has come to get more and more connected with the
South Asian realm in general and India in particular
(Gill and Kumar 2005:45). Being close neighbours,
contact between the people of these two countries
goes back to over two millennia (Gill and Kumar
2005:47). Relation between India and Bhutan during
the past four decades is a model of good neighbourly
relationship. It is an ideal example of what enlightened
and far-sighted leadership can achieve. The age-old
ties between India and Bhutan have been conditioned
by bonds of shared history, geography, language,
culture and tradition (Letho 1994: 53). The Kingdom
of Bhutan is often described as being physically small
with limited economic scope and military might.
In spite of these limitations, Bhutan has earned the
reputation of being a peaceful country where the
development of threats from militancy, terrorism, and
economic disparity within itself has virtually been
absent. In this sense, Bhutan has thus far been more
fortunate than many of its neighbours in the South
Asian region (Choden 2004:112).
Relations between nations have often been
observed to harbor dormant political ambitions that
are seldom made public. Incidents of nascent political
ambitions invisible to the astute diplomatic eye is
not a novel phenomenon. However, in the midst of
such difficult conditions caused by intricacies of real
politik, lie certain bilateral relations that are relatively
free from the skirmishes of egocentric domestic
political aspirations. The bilateral relations between
India and Bhutan present a scenario of contentment in
which two neighbouring countries coexist peacefully
with democratic goals and political aspirations in a
harmonious equilibrium (Bandyopadhyay 2008: 1).
Both the countries have always shared a constructive
relationship.
Ms. Juhi Srivastava, Assistant Professor, National P.G. College, Lucknow (U.P.)
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Juhi Srivastava
2. Indo-Bhutan Relations: The Historical
Bases of the Relationship:The initiation of Indo-
Bhutan friendship as it stands today is credited to the
efforts of Indian Prime Minister Pandit Jawaharlal
Nehru and His Majesty Jigme Dorji Wangchuck, the
third King of Bhutan. Their meeting in the 1950s
sparked the dialogue for development cooperation.
Recorded historic relations between Bhutan and
India date back to 747 A.D., when the great Indian
saint Padmasambhava introduced Buddhism in
Bhutan, which has since then permeated all aspects of
Bhutanese life. Aside from such shared cultural and
religious heritage, other areas of interaction developed
during the British rule in India, which include several
Anglo-Bhutanese skirmishes and battles that were
consequently followed by treaties and agreements. It
was within this period of interaction with the British
that trade between Bhutanese and Indians was also
recorded to have taken place for the first time i.e. in
1873 (Choden 2004:13).
Occupation of Tibet by China (1910-12) and
frequent claims made by China over Bhutan led to
the signing of the Treaty of Punakha in 1910 with
British India. This treaty succeeded in driving out
all the claims that China was trying to make over
Bhutan, but failed to define the status of Bhutan
in technical or legal terms. So this proved to be a
source of uncertainty over its relations with India as
the British rule was about to end. After India gained
independence from the British rule in August 1947,
it signed standstill agreements with few states like
Sikkim, Nepal, and Tibet in order to continue the
then existing relations until new arrangements were
made but did not sign any such document with Bhutan
which left it in a confused state. Bhutan’s status as a
country with respect to India became clearer when Pt.
Jawaharlal Nehru, the then Prime minister of India,
invited Bhutan to participate in the Asian Relations
Conference in 1947 (Bandyopadhyay 2009: 3).
Towards the end of 1948, King Jigme
Wangchuck sent a delegation to New Delhi to discuss
The Indian Journal of Political Science
the relations between Bhutan and India and got
assurance from the Indian government that Bhutan’s
autonomy would be respected by India and finally the
negotiations between the two culminated into signing
of the historic treaty i.e. Indo-Bhutanese Treaty of
1949 which institutionalized the relations between
the two countries (Rajput 2011: 106). This treaty
provided for perpetual peace and friendship between
the two Governments, free trade and commerce and
equal justice to each other’s citizens along with the
assurance that India would not interfere in the internal
administration of Bhutan. Showing the attitude of
reciprocity the Government of Bhutan agreed to be
guided by Government of India’s advice in regard to
its external relations and this historic moment initiated
a glorious friendship between these two South-Asian
neighbours.
Traditionally, Bhutan followed a policy of
isolation, or perhaps better termed a policy of
withdrawal from international politics to preserve
its independence and distinct identity. Its geography
protected it and allowed it to apply this policy
successfully during the colonial years. But strategic
developments in the Himalayan region in the 1950s
moved Bhutan away from this tradition (Ahsan and
Chakma 1993:1045). The geographical as well as
political scene in the entire Himalayan region and
the Indian sub-continent underwent remarkable
transformations following the declaration of the
People’s Republic of China in 1949 and the invasion
of Tibet by the People’s Liberation Army in 1950.
These incidents plus the presence of Chinese troops
near the border of Bhutan, seizure of Bhutanese
enclaves in Tibet and recurrent Chinese claims all led
Bhutan to reassess its traditional policy of isolation
and in such circumstances the need to develop its
lines of communication with India became the need
of the hour for Bhutan. As a result, Bhutan decided
to develop its line of communication with India and
after this the process of socio-economic development
started in Bhutan with India’s aid and assistance
(Choden 2004:114).
For India’s own security too, the stability of
Himalayan states falling within its strategic interest
was a crucial factor to be considered. With the
border tensions between India and China escalating
into military conflict in 1962, India could not afford
Bhutan to be a weak buffer state. Against this
background, Indo-Bhutan relationship started taking
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666
a concrete form following number of state visits made
by the third king, his Majesty Jigme Dorji Wangchuck
to India and by the first Indian Prime Minister
Pt. Jawaharlal Nehru from 1954 to 1961. Besides
emphasizing on India’s recognition of Bhutan’s
independence and sovereignty in his public statement
in Paro, Nehru’s visit in 1958 was also significant
from the point of view of discussions initiated for
development and cooperation in various spheres
between the two countries. (Choden 2004: 115).
Then with India’s consistent assistance, guidance
and support, Bhutan began to diversify its contacts
and made attempts to establish itself as a sovereign
and independent state at the world front. India also
respected Bhutanese endeavors, always stood behind
Bhutan in all its efforts and steps to get international
recognition and said that India would always respect
the independent and sovereign status of Bhutan
as well as the clauses of the Treaty of 1949 would
never bound Bhutan in marching ahead on the path
of progress. “Prime Minister Nehru spelt out his
perception of Indo- Bhutan relations in the course
of speech in Paro in 1958 in the following eloquent
words :
‘Some may think that since India is a great and
powerful country and Bhutan a small one, the former
might wish to exercise pressure on Bhutan. It is,
therefore, essential that I make it clear to you that our
only wish is that you should remain an independent
country, choosing your own way of life, and taking
the path of progress according to your will. At the
same time, we two should live with mutual goodwill.
We are members of the same Himalayan family
and should live as friendly neighbours helping each
other. Freedom of both Bhutan and India should be
safeguarded so that none from outside can do harm to
it’. These words of Pt. Nehru clearly reflected India’s
positive attitude towards its most trusted neighbour
Bhutan (Letho 1994:54).
Then this small landlocked Himalayan state
started its international journey with becoming a
member of Colombo Plan in 1963 and it was due to
India’s efforts that full membership of Colombo Plan
was granted to Bhutan. As a result of its membership,
it received technical assistance from Japan, Australia,
Canada, New Zealand and England (Murthy 1999).
Another landmark in the history of Bhutan was its
admission to Universal Postal Union in 1969. Again
India assisted Bhutan’s membership in 1968 which
Bhutan: A Success Story For India
bore fruits. United Nations membership constitutes
membership of the world community and in September
1971, Bhutan gained membership of the United
Nations. Bhutan’s admission to the membership of the
United Nations marked not only the manifestation of
Bhutan’s full independence but also India’s goodwill
towards it (Rajput 2011: 201&206). Then it became a
member of Economic and Social Council for Asia and
Pacific (ESCAP) in 1972 and of SAARC in 1985 with
the consistent support of India. Bhutan also expressed
its gratitude towards India for its kind response, raised
voice in support of India in world forums over various
issues and this ultimately strengthened the bond of
friendship between the two.
3. Various Areas of Cooperation: India, since
the inception of this relationship between the two, has
always tried to help Bhutan through various means
and Bhutan has also attempted to reciprocate. So
the cooperation between the two extends to various
sectors the details of which are as follows:
(a) Developmental aid and Economic
cooperation- The relationship between India and
Bhutan in economic field was started from British
period. With the help of the treaties of 1865 and
1910, Bhutan succeeded in securing some annual
assistance from British India. The same economic
assistance but now increased, was continued by
independent India, under the treaty of 1949. After the
disturbances created by China, it decided to break the
cocoon of isolation and made changes in its foreign
policy. In 1954-55, Bhutan accepted the help of an
Indian agency to conduct a survey of its rivers and
allowed the establishment of hydro-meteorological
stations. In 1956, India grafted Bhutan and hospital
equipment worth Rs 2.6 lakhs (Choudhary 2012: 45).
India has extended generous technical and financial
support to Bhutan’s development process. Planned
development in Bhutan began in 1961, with the first
two Five Year Plans (FYP) wholly financed by the
Government of India (GOI). Over the years, Indian
assistance increased steadily from Rs. 107 million in
the First FYP to Rs. 9000 million in the Eighth FYP.
While Bhutan’s source of foreign aid has diversified
significantly since it became a member of the United
Nations, India continues to be the major donor of
external aid to Bhutan (Bandyopadhyay 2009:5).
Several organizations of Indian government also
assisted in the economic development of Bhutan like
Border Roads Development Organization, popularly
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667
known as DANTAK which held the responsibility of
developing Bhutan’s transport and communication
infrastructure and the Geological Survey of India
which was engaged in exploring mineral resources
in Bhutan. The cooperation in the economic areas
between the two has greatly expanded and has boosted
the level of trust and confidence between the two.
(b) Trade and Investment- A new era in
Bhutan’s foreign trade commenced following the
closure of trade routes between Bhutan and Tibet in
1960, and the construction of roads linking the Bengal-
Assam plains to Phuentsholing, and Phuentsholing
to Thimphu and Paro in 1962. Over the period of
1981-2001, Bhutan’s exports to India accounted for
an average of 86.5 percent of its exports, and imports
from India accounted for an average 79 percent of
the total imports. India is not only Bhutan’s main
development partner but also its leading trade partner.
A free trade regime exists between India and Bhutan.
Bhutan’s main items for export to India are electricity,
mineral products, product of chemical industries,
base metals and products, and wood products with
hydropower generation being the most important
area of comparative advantage. Imports from India
include a wide range of items including machinery,
mechanical appliances, base metals, electronic items,
foodstuff and other basic necessities and consumer
items ( Choden 2004: 116).
Besides trade, Indian involvement extends into
many other areas of Bhutan’s private and public sector
activities. In the area of Foreign Direct Investment,
Bhutan has so far pursued a conservative policy,
and the first and only foreign investor in Bhutan for
almost two decades since 1971 was the State Bank
of India (SBI). The SBI has worked in collaboration
with the Bank of Bhutan (BOB). In addition, Indian
nationals operate a range of small-scale trading and
service activities on licenses issued by the Ministry
of Trade and Industry in Bhutan. Such ventures
include small shops trading in a variety of products
like grocery, auto parts and furniture, as well as scrap
dealers, distribution and dealership agencies (Choden
2004:116).
Whether it was building modern roads,
microwave links or cement plants, each and every
achievement of Indo-Bhutanese cooperation has
been a source of special satisfaction to India (Rajput
2011:154).
The Indian Journal of Political Science
(c) Hydro energy Cooperation- A strong
example of regional cooperation for shared economic
benefit in the SAARC region is Bhutan and India’s
cooperation in the Hydropower sector. Bhutan has a
total capacity of 30,000 MW and an economically
viable total capacity of 23,760 MW comprising in
total 76 hydro projects of which 1,400 MW have been
built and another 10,000 MW will be constructed
by 2020. The math here is simple; Bhutan needs
the revenue for long term and sustainable economic
development and India’s needs the electricity to push
up its economic growth rates and meet its rapidly
rising energy demands. This is also in the context of
good diplomatic relations between the two countries
(Lamsang 2013). The cooperation in the hydro
energy sector is one of the most important pillars of
the relationship between the two. Despite financial
limitations and lack of scientific plans, Bhutan has
received and is still receiving huge support from India
and the collaboration between the two resulted in
successful completion of various mega projects like
Chukha Hydropower project (1988), a joint venture
between India and Bhutan, Kurichhu Hydro power
project commissioned in 2002 and Tala Hydro power
project commissioned in 2006 with the production
capacity of 336 MW, 60 MW, AND 1020 MW
respectively.
Encouraged by the success of these power pro-
jects, the Bhutanese during PM Modi’s visit to Bhu-
tan have now announced that they will harness 10,000
MW of power by 2020 so that they are able to now
spread the benefits of power generation and wealth
acquisition to other parts of Bhutan, particularly far
flung areas where the benefits may not have reached.
(d) Education- The benefits of Indo-Bhutan
relations are also prominent in other areas such as
education and culture where there is a high level of
interaction. The Indian government provides about
fifty scholarships annually to Bhutanese students for
their higher studies in India. A significant number
of Indian teachers contribute to education in Bhutan
with many of them posted to teach in remote areas
in Bhutan. In addition, Sherubtse College in eastern
Bhutan has developed into a premier institution for
tertiary education in Bhutan with its affiliation to the
Delhi University in India (Choden 2004: 120). The
Government of India also provides various scholar-
ships at the Undergraduate and Post graduate level
through ITEC scheme, Ambassadors Scholarship,
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668
Nehru-Wangchuck Scholarship etc.
(e) Other Area of Cooperation- Other areas
of cooperation include bilateral civil aviation dating
back to 1983 when Bhutan’s national airline Druk
Air, began commercial operations to India with flights
from Paro to Calcutta and later from Paro to Delhi
in 1988. A Government of India notification in 1998
qualified Druk Air to avail of fuel at bonded rates,
and its fuel continues to be supplied by the Indian
Oil Company. By 2000, Druk Air was also granted
permission to use Bagdogra as a diversionary airport
for refueling, technical halts and during bad weather
conditions. With permission from the Department of
Civil Aviation in India, Druk Air inaugurated flights
on the Paro-Bodhgaya sector on November 11, 2003,
thus offering services to Bhutanese making their an-
nual pilgrimages( Bandyopadhyay 2009: 8). Informal
people-to-people contact has also contributed in so-
lidifying the bond of friendship between the two.
4. Future Prospects of Indo-Bhutan Relations:
No other country in the South Asian region has con-
sistently supported India and its foreign policy initia-
tives like Bhutan. This small but beautiful landlocked
Himalayan state is the most trusted ally of India and
even after the renewal of the historic Treaty of 1949
in 2007 between the two, the basics have remained
the same. Mutual trust, mutual friendship, mutual
sensitivity all remains same. Only some of the provi-
sions have been restated or in other words have been
rearticulated to make it relevant with the changing
situations. Though some people in both the countries
viewed it differently and said that the revision of the
treaty in 2007 is a result of compulsion, but the reality
is altogether different and the impulse for revising the
treaty has come f rom both the sides. India has never
tried to dictate Bhutan or impose its interests over
Bhutan. It is case of win-win relationship between
the two and the relationship between the two has
moved from dependency to a level of active partner-
ship where both the countries are benefitting through
active cooperation and collaboration with each other
and even after Bhutan becoming a democracy from
monarchy, the basic contours have not changed and
India has also supported Bhutan in its transition from
monarchy to democracy.
The decision of Mr. Narendra Modi to choose
Bhutan as his maiden foreign visit destination,
immediately after being elected as Prime Minister
of India has also shown the importance and value
Bhutan: A Success Story For India
which India attaches to its relationship with Bhutan.
His visit has helped in further deepening the age-
old ties between two and conveyed the message that
India and Bhutan will continue to enjoy a warm and
special relationship even in the future despite the
change in leadership in both the countries. ‘Bhutan’s
relationship with India in this context is truly all
weather. It is not characterized by the usual anti-
Indianism which the elites in neighbouring countries
use to make political business nor has Bhutan ever
adopted a balance-India policy by engaging with
China’ (Pattanaik 2014: 1). The King as well as the
people of Bhutan have also shown respect, trust and
affection for India’s consistent support and assistance
for it and conveyed the message that nothing can alter
this beautiful relationship between the two.
The decisions of Mr.Modi of extending greater
assistance to Bhutan, doubling of scholarships for
the Bhutanese students, idea of organizing an annual
sport festival in order to provide a platform for
increased connectivity between the people of both
the countries, all this shows that the significance of
the friendship between the two is not going to decline
even in the long run. Though there are certain issues
over which both India and China need to work over
like the issue of illegal presence of anti-Indian ULFA
and BODO militants in the dense forest of Southern
Bhutan, news of increasing interaction between China
and Bhutan, the issue of liberalization policy adopted
by India and its impact over Bhutan etc. but till date
both the countries have done very well in managing
their relationship.
Conclusion: Concludingly, it can be said that
the future prospects of this relationship is bright and
this can be an example for other countries of the
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669
world that how a small country like Bhutan and a
large nation like India has managed to continue their
friendship despite being asymmetrical in terms of size
and population. Much will depend on the initiatives,
actions and decisions that will be taken by the leaders
of both the countries in the long-run.
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1. Ahsan, S.A. and Chakma, B (1993), “Bhutan’s Foreign Policy:
Cautious Self Assertion?” , Asian Survey, 33(11): 1043-54
2. Bandyopadhyay, Lopamudra (2009), “ Indo-Bhutanese
Relations: A Historical Perspective”, Global India Foundation
3. Chaudhari, Shivdayal (2012), Changing Dynamics of India-
Bhutan Relations: A Case Study of The Treaty Of Peace And
Friendship, 1949-2011, M.Phil Dissertation, New Delhi:
Jawaharlal Nehru University.
4. Choden, Tashi (2004), “Indo-Bhutan Relations: Recent
Trends” Journal of Bhutan Studies (Thimpu), 11(winter):
pp112-128.
5. Gill, M.S. and T. Kumar (2005), “Indo-Bhutan Relations: An
Evolutionary Perspective” Man and Development, 45-56.
6. Lamsang, Tenzing (2013), “Opportunities, Issues and Regional
Cooperation in the Indo-Bhutan Hydropower Development
Story”[Online Web] Accessed 31 August 2014 URL: http://
www.thebhutanese.bt/opportunities-issues-and-regional-
cooperation-in-the-indo-bhutan-hydropower-development-
story/
7. Letho,K.D. and D.Karma(1994), “Indo-Bhutan Relations”,
Indian Journal of Asian Affairs,7(1): 53-58.
8. Murthy, Padmaja (1999), “ Indo-Bhutan Relations: Serving
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Consolidating Bharat for Bhutan Relations”, Institute of
Defence Studies and Analysis
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