India–Bhutan relations represent one of India’s most stable and trusted bilateral partnerships. Rooted in the 1949 Treaty of Friendship and modernised through the 2007 Treaty revision, the relationship is characterised by sovereign equality, deep trust, and development-led engagement.
India–Bhutan Ties as a model for Neighbourhood Policy:
· Sovereign Equality: The 2007 Treaty removed the clause requiring Bhutan to be “guided” by India in foreign policy. It affirmed mutual respect for sovereignty and non-interference.
· Development Partnership Based on Local Priorities: HEPs like Tala (1020 MW) and Mangdechhu (720 MW) supply clean energy to India and generate 25% of Bhutan’s revenue. India contributed ₹4,500 crore to Bhutan’s 12th FYP (73% of external grants). It shows that developmental projects must be transparent, and aligned with partner needs, not donor driven.
- Security Cooperation with Sensitivity: India’s support during the 2017 Doklam standoff reinforced mutual trust. It reinforces that defence cooperation remains demand-driven, not imposed.
- Respect for Autonomy: India accepted Bhutan’s diversification of ties with Japan, EU, and multilateral forums while Bhutan also avoided adversarial alignment choices.
- Cultural Diplomacy: Exhibition of Piprahwa Buddha relics and large Buddhist exchanges strengthen people-to-people bonds. 4,000+ Bhutanese students’ study in India annually which further strengthen cross-cultural ties.
Challenges in replicating the model to Other Neighbours:
- Absence of Deep Cultural Convergence: The Buddhist civilizational affinity with Bhutan does not exist with Pakistan, Maldives, or Bangladesh, or Myanmar in the same form.
- Domestic Political Volatility: Anti-India nationalism is politically mobilised in Nepal, Maldives, and Sri Lanka whereas Bhutan, with its stable monarchy and consensus politics, has avoided populist anti-India rhetoric.
- Chinese Footprint: China’s BRI received acceptance among many neighbours which dilutes India’s developmental influence. Bhutan is the only neighbour without formal diplomatic ties with China, reducing external competition.
- Asymmetry Suspicion: India’s size advantage is often perceived as “Big Brother” dominance in other South Asian states, unlike Bhutan, where partnerships are seen as mutually beneficial.
- Structural frictions: Issues of borders (Nepal), ethnicity (Sri Lanka), religion (Bangladesh, Pakistan), and migration (Myanmar, Bangladesh) complicate bilateral engagement. But Bhutan does not carry these.
Conclusion:
Despite the constraints, India can adapt the Bhutan template of balancing principled sensitivity with pragmatic flexibility to build stable, mutually respectful neighbourhood partnerships in an evolving regional order.
‘+1’ Value-Addition:
- India buys power from Bhutan’s hydropower projects, which contribute 25% of Bhutan’s national revenue.
- India accounts for 75% of Bhutan’s imports and 60% of its exports, making it Bhutan’s largest and most reliable economic partner in South Asia.
- 2007 Treaty Revision: India voluntarily removed the clause requiring Bhutan to be “guided by India” in foreign policy, recognising the principle of sovereign equality in South Asia.
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