Context:

• Prime Minister Narendra Modi received Bhutan’s highest civilian award, the ‘Order of the Druk Gyalpo,’ the first foreign Head of the Government to receive the honour.
• The award has been conferred to Prime Minister Modi in recognition of “his outstanding contribution to the growth of India-Bhutan relations and for his distinguished service to the Bhutanese nation and people.” 

Factors which had strengthened India-Bhutan relations:

• The basic framework of India-Bhutan bilateral relations is the Treaty of Friendship and Cooperation signed in 1949 between the two countries and revised in February 2007. 
• Respect and Equality: India and Bhutan share a unique and time tested bilateral relationship, characterised by utmost trust, equality, goodwill and mutual understanding. The special relationship has been sustained by a tradition of regular high level visits and dialogues between the two countries. 
• Cultural and Religious Affinity: India respects Bhutan’s unique religious practices and cultural identity based on Buddhism fosters a deep cultural affinity between the two countries.
  • A number of Bhutanese pilgrims travel to holy Buddhists sites in India. Reflecting the special nature of the relationship, the two countries share an open border with regular exchange of travellers in both directions for work, tourism, shopping, medical care etc. 
• Economic Cooperation: India has supported Bhutan’s economic development through various means, including hydropower cooperation, development assistance, and investment partnerships.
  • India has been extending economic assistance to Bhutan’s socio-economic development since the early 1960s when Bhutan launched its Five Year Plans. 
  • India continues to be the principal development partner of Bhutan. For the 12th Five Year Plan, India’s contribution of Rs. 5000 cr. will constitute more than 80% of Bhutan’s total external grant component.
• Hydropower Cooperation: Mutually beneficial hydro-power cooperation with Bhutan forms the core of bilateral economic cooperation. 
  • For Bhutan, hydro-power development continues to be a vital catalyst for socio-economic development. The ongoing cooperation between India and Bhutan in the hydro-power sector is covered under the 2006 bilateral agreement for cooperation and its Protocol signed in 2009. 
  • Four hydro-electric projects (HEPs) totaling 2136 MW are already operational in Bhutan and are supplying electricity to India. The 720 MW Mangdechhu was commissioned in August 2019. 
  • Two HEPs namely, 1200 MW Punatsangchhu-I, 1020 MW Punatsangchhu-II in Inter-Governmental mode and Kholongchhu HEP (600 MWs) under the joint venture mode are under various stages of implementation
• Leadership Trust: There is a unique level of trust between the leadership of both countries, as evidenced by regular high-level visits and dialogue.
• Cultural Exchange and Education: Cultural exchange programs and educational opportunities have further strengthened people-to-people ties between the two nations.
  • India is the most popular educational destination for Bhutanese students -almost 4000 Bhutanese students are enrolled in Indian Universities at any time, many of whom are also provided scholarships by Govt. of India. 
• Geopolitical Considerations: Both countries share common geopolitical interests and have cooperated on regional and international issues.
• Shared Values: India and Bhutan share common values such as democracy, peace, and stability, which have contributed to the strengthening of their bilateral relation.

Steps to Strengthen the Cooperation:

• Speeding up the pending hydro power plants which can help both the nations. Here, it is time to acknowledge shortcomings in the current model and there is a need to go back to the drawing board to work out a more practical and potentially successful new model for hydro projects.
• Cooperation and support for the Gelephu project: Through this project, Bhutan aims to establish a Mindfulness City in southern Bhutan. This city is envisioned as a Special Economic Zone designed to attract foreign investment and promote prosperity in Bhutan, with a particular emphasis on sustainability, well-being, and environmental concerns. 
  • The project seeks to elevate the income levels of Bhutanese citizens while addressing any potential impacts on Bhutan’s status as a carbon-negative country.
• Sustainable Tourism and transportation links should be developed between the countries. It should not affect the environmental concerns of Bhutan and its people.
  • Faster development of the railway links will also enhance the cooperation.

Prime Minister Narendra Modi, on his last visit,  assured Bhutan’s top leadership that India will stand by the Himalayan kingdom in its quest for development and that their unique bilateral ties would create avenues for greater cooperation in connectivity, infrastructure, trade and energy sectors. He also added that as a part of India’s ‘Neighbourhood First’ Policy New Delhi will provide support of Rs 10,000 crore to Thimphu over next five years. Proper measures in this direction will ensure a win-win cooperation between India and Bhutan.