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Introduction:

India and Bhutan have long enjoyed a special bond of friendship and diplomatic relations characterized by trust, mutual respect, and a shared cultural heritage. This unique relationship has weathered many global changes and has remained resilient over the years. However, like any bilateral relationship, it is not without its challenges.

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Challenges in the India-Bhutan Relationship:

• Border Disputes and Security Concerns:
  • The recent border disputes between Bhutan and China have implications for India, especially considering the strategic location of the Doklam trijunction near the Siliguri Corridor, vital for India’s geographical connectivity to its northeastern states.
  • Incidents like the 2017 Doklam standoff have brought to light the delicate balance that Bhutan has to maintain between India and China, and the implications it has for India’s security concerns.
• China’s Growing Influence:
  • China’s increasing diplomatic and economic overtures towards Bhutan, as part of its broader assertive foreign policy in the Asia-Pacific region, present a challenge to India’s historically strong influence in Bhutan.
• Hydropower Projects:
  • Although hydropower is a significant sector connecting the two economies, with India assisting Bhutan in developing these projects, there have been rising concerns in Bhutan regarding the terms and sustainability of these projects, which are often seen as skewed in favour of India.
• Trade Imbalance:
  • Despite India being Bhutan’s largest trading partner, there exists a trade imbalance with Bhutanese exports to India not being at par with its imports, leading to economic concerns within Bhutan.

Strategies to Address these Challenges:

• Enhanced Economic Cooperation:
  • Initiatives like setting up the first Integrated Check Post (ICP) along the Jaigaon and Phuntsholing border and the operationalisation of the third international internet gateway can significantly boost trade and economic ties.
  • India can further aid Bhutan in diversifying its economy beyond hydropower, by investing in sectors like tourism, infrastructure, and other industries, fostering self-reliance and sustainable economic growth.
• Strategic and Security Dialogue:
  • Continued strategic cooperation is essential to address security concerns. This includes joint military exercises, intelligence sharing, and maintaining the status of Bhutan as a buffer state.
  • India’s role in assisting Bhutan in developing and maintaining its border infrastructure should continue, with a focus on enhancing Bhutan’s defensive capabilities.
• Cultural and Educational Exchange:
  • Promoting cultural exchange programs and visa-free movement can strengthen people-to-people ties. India could further support Bhutan in preserving its cultural heritage and promoting shared values.
  • The decline in the number of Bhutanese students studying in India could be reversed through more scholarships and opportunities for Bhutanese youth, contributing to capacity building in Bhutan.
• Collaboration in Renewable Energy:
  • India should continue to assist Bhutan in the development of its renewable energy resources, focusing on mutually beneficial and environmentally sustainable hydropower projects.
• Addressing Trade Issues:
  • To tackle the trade deficit, India could offer more favorable terms for Bhutanese exports, and allow greater market access for Bhutanese goods, promoting a more balanced trade relationship.

Conclusion:

The India-Bhutan relationship, founded on shared interests and mutual respect, has stood the test of time. The challenges it faces today, from border disputes to the growing influence of external powers, are complex but not insurmountable. With a strategic and mindful approach emphasizing cooperation, understanding, and mutual benefit, India and Bhutan can overcome these challenges. By doing so, they can further strengthen a partnership that not only serves their interests but also contributes to the stability and prosperity of the wider South Asian region.