India-Bhutan Relationship: India and Bhutan’s Emphasis on Infrastructure and Connectivity

India-Bhutan Relationship: India and Bhutan’s Emphasis on Infrastructure and Connectivity 8 Nov 2023

India-Bhutan Relationship: India and Bhutan’s Emphasis on Infrastructure and Connectivity

Context:

Relevancy for Prelims: India-Bhutan Relationship and Rail Connectivity links.

Relevancy for Mains: India-Bhutan Relations and Significance of Infrastructure and Connectivity in Bilateral Relations.

Strengthening India-Bhutan Relationship: India and Bhutan’s Emphasis on Infrastructure and Connectivity

  • India and Bhutan emphasize the importance of infrastructure and connectivity in talks between the Indian Prime Minister and Bhutan’s fifth King. 
    • Rail Links: Surveys for the Kokrajhar-Gelephu rail link connecting Bhutan to Assam were discussed, signaling a push for enhanced connectivity.
    • Prospective Rail Link to West Bengal: Discussions initiated for a Bhutan to West Bengal rail link, enhancing regional transportation networks.
    • Facilitating Bhutan-Bangladesh Trade: Plans to develop a rail link to facilitate Bhutan-Bangladesh trade and upgrade checkpoints along the India-Bhutan border.

Need for Economic Diversification for Bhutan

  • Impact on Traditional Sources: Bhutan’s economy traditionally relies on hydropower and tourism, which have been adversely impacted by the COVID-19 pandemic and global warming concerns. 
  • Proposed Measures: To diversify the economy, the following measures are proposed:
    • Special Economic Zone (SEZ): Proposal to build an SEZ at Bhutan’s southern border with Assam to attract investments and foster economic growth.
    • Airport Development at Gelephu: Plans for an airport at Gelephu to boost connectivity and attract international investments.

India and Bhutan Working Together for Regional Growth

  • Bhutan has been actively engaging in regional cooperation to foster economic growth. 
  • Recently taken Initiatives:
    • Preferential Trade Agreement with Bangladesh: Bhutan signed a Preferential Trade Agreement with Bangladesh in 2020, strengthening economic ties and opening new markets for Bhutanese exports.
    • India’s Energy Exchange: Intra-regional growth facilitated by India’s energy exchange, linking Bhutanese and Nepali hydropower suppliers and expanding to Bangladesh and Sri Lanka.

What Is the Strategic Importance of Bhutan Amidst Geopolitical Challenges?

  • Amidst geopolitical challenges, Bhutan’s strategic importance becomes evident. Key considerations include:
    • Cohesive Regional Groupings: Geopolitical conflicts and anti-globalization trends necessitate cohesive regional groupings for sustained growth, taking inspiration from successful models such as the European Union.
    • Security Concerns: India’s concerns over China’s influence in South Asian trade and strategic ties, including boundary issues with Bhutan and the Siliguri Corridor.

Need for Collaboration: Bhutan faces challenges with Pakistan and Myanmar sanctions, emphasizing the need for collaboration with neighboring countries. 

  • Issues with Pakistan and Sanctions: Challenges with Pakistan and Myanmar sanctions necessitate alternative trade routes and closer collaboration with neighboring countries.
  • Engaging Development Partners: Drawing the World Bank and donor countries like Japan into the creation of a sub-regional hub to enhance resources and expertise for sustainable infrastructure projects.

Conclusion:

It’s a good step to agree on new initiatives with neighbors and the World to bolster collaboration in trade, technology, and cross-border connectivity. But India also has to focus on its efficient and time-bound execution to achieve long-term success.

 

Mains Question: What are the challenges in the India-Bhutan relationship, and enumerate strategies that have been proposed to address these challenges. (250 words, 15 Marks)

 

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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हिंदी में भी उपलब्ध

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