Modis Successful Diplomacy by Hawkins Vance;

Author:Hawkins, Vance;
Language: eng
Format: epub
Publisher: Book Network Int'l Limited trading as NBN International (NBNi)
Published: 2018-10-01T16:00:00+00:00

6

Modi in Bhutan and India’s

Policy and Relationship

BHUTAN-INDIA RELATIONSHIPS

While Bhutan shares borders with both China and India, its relationships with the two are not of equal length and depth. It is a lot closer to India, and the two share intimate bonds in the areas of foreign affairs, economy, trade, education and technology, and national defence and security. Bhutan used to build its foreign relations completely around India.

The two signed the Treaty of Perpetual Peace and Friendship Between the Government of India and the Government of Bhutan in Darjeeling, India on August 8, 1949. The treaty does not mention Bhutan’s status as a sovereign state. Article 2 says that, “The Government of India undertakes to exercise no interference in the internal administration of Bhutan. On its part the Government of Bhutan agrees to be guided by the advice of the Government of India in regard to its external relations.”

This means that Bhutan needs to seek “advice” from India in foreign relations in exchange for India’s recognition. Bhutan is heavily dependent on India for financial assistance and foreign relations. India agrees to provide 500,000 INR to Bhutan every year, which is much higher than the 200,000 INR a year from Britain, and also offers to return the 32 square mile of land at Dewangiri to Bhutan as a friendly gesture.

India and Bhutan established formal diplomatic ties on August 8, 1978, but support from India came long before that, as India has been showering Bhutan with financial and technical assistance since 1960s, helping Bhutan set up highways as well as water and power stations. Bhutan has always supported India on the international scene, taking the side with India in the United Nations, SAARC, and other international conventions. Examples include Bhutan’s support for India to become a permanent member of the United Nations Security Council. The Bhutanese Minister of Foreign Affairs Lyonpo Khandu Wangchuk, on the 59th United Nations Conference in September 2004, explicitly expressed Bhutan’s support for India and Japan to become permanent members of the United Nations Security Council.

India is Bhutan’s leading provider of economic assistance. The majority of investment in Bhutan’s successive five-year economic development projects (hereinafter “five-year projects”) comes from India. Under the suggestion of India Prime Minister Jawaharlal Nehru, Bhutan launched the first five-year project in 1961. The first and the second five-year projects were completely funded by India. The third to eighth saw India providing 90% to 27.6% of the funds. India recently agreed to subsidize Bhutan’s ninth five-year project.

India is Bhutan’s biggest trade partner in terms of import and export. Take year 2001 as an example, Bhutan’s export to India in that year amounts to 4.7 billion Bhutanese ngultrums (including electricity), accounting for 94% of Bhutan’s total export. Bhutan’s import from India in that year amounts to 7 billion Bhutanese ngultrums, accounting for 77% of Bhutan’s total export.

Each year, India provides scholarship to 50 Bhutanese students studying medicine, law, engineering, computer science, science, humanities, and business at universities in India. Bhutan has two higher education institutions, namely

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