{"id":59001,"date":"2025-11-12T19:08:39","date_gmt":"2025-11-12T13:38:39","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=59001"},"modified":"2025-11-13T13:06:02","modified_gmt":"2025-11-13T07:36:02","slug":"pm-visit-to-bhutan","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/12-11-2025\/pm-visit-to-bhutan","title":{"rendered":"PM Visit to Bhutan"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/IR<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prime Minister Narendra Modi&#8217;s recent visit to <strong>Bhutan<\/strong> strengthened the special ties of friendship and cooperation between the two countries.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Outcomes<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inauguration of 1020 MW Punatsangchhu-II Hydroelectric Project<\/strong> constructed under a bilateral agreement between both Nations.<\/li>\n\n\n\n<li><strong>Announcements:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Understanding on the resumption of work on the main dam structure of 1200 MW Punatsangchhu-I Hydroelectric Project.<\/li>\n\n\n\n<li>Grant of land in Varanasi for building a Bhutanese Temple\/Monastery and Guest House.<\/li>\n\n\n\n<li>Decision to establish an Immigration Check Post in Hatisar across Gelephu.<\/li>\n\n\n\n<li>INR 4000 crore Line of Credit (LoC) to Bhutan.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>MOUs Signed:&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>MoU on Cooperation in the field of <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/16-10-2024\/indias-total-renewable-energy-capacity-crosses-200-gw-mark\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/ca\/current-affairs\/16-10-2024\/indias-total-renewable-energy-capacity-crosses-200-gw-mark\">Renewable Energy<\/a>.<\/li>\n\n\n\n<li>MoU on Cooperation in the field of Health and Medicine.<\/li>\n\n\n\n<li>MoU between PEMA Secretariat, Bhutan and National Institute of Mental Health and Neuro Sciences (NIMHANS) India on Building Institutional Linkage.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Brief on India-Bhutan Relations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Diplomatic relations between India and Bhutan<\/strong> were established in <strong>1968<\/strong>.\n<ul class=\"wp-block-list\">\n<li>The basic framework of India- Bhutan relations has been the <strong>Treaty of Friendship and Cooperation signed in 1949<\/strong>.<\/li>\n\n\n\n<li>The treaty was revised in <strong>2007 <\/strong>giving <strong>Bhutan more autonomy <\/strong>while reaffirming mutual respect for sovereignty and close cooperation.<\/li>\n\n\n\n<li>In 2024, Prime Minister Shri Narendra Modi was conferred the <strong>Order of the Druk Gyalpo, <\/strong>Bhutan\u2019s highest civilian decoration, the first foreign leader to be given the award.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Developmental Partnership: <\/strong>India remains Bhutan\u2019s foremost development partner, supporting its national priorities since its 1st Five-Year Plan (1971).\n<ul class=\"wp-block-list\">\n<li><strong>Annual Plan Talks (Bilateral Development Cooperation Talks): <\/strong>Institutionalised mechanism for deciding priorities and modalities of assistance.<\/li>\n\n\n\n<li><strong>Sectors Covered: <\/strong>Roads, infrastructure, digital connectivity, hydropower, agriculture, education, health, HR development, urban development, etc.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Trade Relations:<\/strong> India has consistently been<strong> Bhutan\u2019s top trading partner-<\/strong> both as an import source and as an export destination.\n<ul class=\"wp-block-list\">\n<li>Since 2014, India\u2019s trade with Bhutan has more than tripled\u2014from USD 484 million in 2014\u201315 to USD 1,777.44 million in 2024\u201325, accounting for over 80% of Bhutan\u2019s overall trade.<\/li>\n\n\n\n<li><strong>2016 India-Bhutan Agreement on Trade, Commerce and Transit, <\/strong>establishes a free trade regime between the two countries and also provides Bhutan duty free transit of goods to\/from third countries.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Energy Cooperation (Hydropower &amp; Renewables): <\/strong>India has constructed 4 major HEPs in Bhutan: Chukha (336 MW), Kurichhu (60 MW), Tala (1020 MW), Mangdechhu (720 MW).\n<ul class=\"wp-block-list\">\n<li>Currently, there are two HEPs under construction: 1020 MW Punatsangchhu-I HEP and 1020 MW Punatsangchhu-II HEP.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Space Cooperation: <\/strong>South Asia Satellite Ground Station inaugurated in 2019 by both Nations.\n<ul class=\"wp-block-list\">\n<li>The two sides collaborated on the India-Bhutan SAT, the first satellite jointly developed by India and Bhutan, launched in 2022.<\/li>\n\n\n\n<li>Both sides signed a Joint Plan of Action on Space Cooperation in 2024.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Fin-Tech: RuPay Card:<\/strong> Launched in two phases (2019 &amp; 2020) for full interoperability.\n<ul class=\"wp-block-list\">\n<li>In 2021, India\u2019s Bharat Interface for Money (BHIM) application was launched in Bhutan with the objective of promoting cashless payments between the two nations.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Indian Diaspora in Bhutan: <\/strong>About 50,000 Indians are presently working in Bhutan in the sectors such as infrastructure development, hydropower, education, trade and commerce signifying close people to people ties between the two countries.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of Bhutan for India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Buffer against China:<\/strong> Bhutan serves as a geographic buffer between India and China. Its location helps protect the vulnerable Siliguri Corridor (Chicken\u2019s Neck) \u2013 India\u2019s only land link to the Northeast.\n<ul class=\"wp-block-list\">\n<li>China has no formal diplomatic relations with Bhutan but is actively negotiating the boundary issue.<\/li>\n\n\n\n<li>India sees Bhutan as vital to maintaining a South Asian balance of power and resists Chinese strategic encroachment, especially near the tri-junction.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Neighbourhood First Policy:<\/strong> Bhutan is a central pillar of India\u2019s \u2018Neighbourhood First\u2019 policy.\n<ul class=\"wp-block-list\">\n<li>Stability in Bhutan reflects India\u2019s larger vision for regional peace and cooperation in South Asia.<\/li>\n\n\n\n<li>Bhutan plays a role in enhancing India\u2019s connectivity to Northeast India.\n<ul class=\"wp-block-list\">\n<li>India&#8217;s Act East Policy aims to connect Northeast with Southeast Asia, and Bhutan is integral to such land-link corridors.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Hydropower and Energy Security: <\/strong>Bhutan&#8217;s rivers are a clean and renewable source of energy. India helps build hydropower projects and imports surplus electricity.\n<ul class=\"wp-block-list\">\n<li>Helps India diversify its energy mix while giving Bhutan major revenue .<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Trade and Economic Ties: <\/strong>India is Bhutan\u2019s largest trade partner and source of investment.\n<ul class=\"wp-block-list\">\n<li>Special India\u2013Bhutan Trade and Transit Agreement provides duty-free access to markets.<\/li>\n\n\n\n<li>Bhutan is crucial to India\u2019s efforts to promote sub-regional connectivity in South Asia, especially BBIN (Bangladesh-Bhutan-India-Nepal).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Diplomatic and Multilateral Support:<\/strong> Bhutan often supports India\u2019s positions in international forums, including the UN.\n<ul class=\"wp-block-list\">\n<li>Bhutan\u2019s commitment to peaceful foreign policy and non-alignment aligns with India\u2019s regional diplomacy.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in Relations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Economic Imbalance: <\/strong>Bhutan faces a large trade deficit with India, importing much more than it exports.\n<ul class=\"wp-block-list\">\n<li>Despite preferential trade agreements, Bhutanese industries struggle to diversify.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>China Factor and Border Negotiations: <\/strong>Bhutan and China have held 24 rounds of border talks, including a 2021 MoU on a \u201cthree-step roadmap.\u201d\n<ul class=\"wp-block-list\">\n<li>India is concerned about potential China\u2013Bhutan border agreements, especially in the Doklam region, which is strategically vital for India.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Connectivity Gaps: <\/strong>Limited road and rail links restrict economic and strategic integration.\n<ul class=\"wp-block-list\">\n<li>Bhutan has reservations about joining the BBIN Motor Vehicles Agreement due to environmental and cultural concerns.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Environmental and Sustainability Concerns: <\/strong>Bhutan\u2019s model of Gross National Happiness and environmental protection sometimes clashes with India\u2019s infrastructure-led approach.<\/li>\n\n\n\n<li><strong>Strategic Balancing and Autonomy: <\/strong>Bhutan seeks greater foreign policy autonomy, especially in global forums.\n<ul class=\"wp-block-list\">\n<li>While the 2007 Treaty revision gave Bhutan more space, India still plays a dominant role in its external affairs and defence, which could create friction if not managed with sensitivity.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>While India and Bhutan share a strong foundation of trust and cooperation, evolving economic aspirations, geopolitical realities, and domestic political changes in both countries pose challenges.\n<ul class=\"wp-block-list\">\n<li><strong>Managing these with mutual respect, transparency, and strategic sensitivity<\/strong> is key to sustaining their special relationship.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India\u2013Bhutan relations are a <strong>model of good-neighbourly partnership<\/strong> based on mutual trust and benefit.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/pm-modi-embarks-on-two-day-visit-to-bhutan\/article70265472.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context<\/strong><\/p>\n<li class=\"ms-5\">Prime Minister Narendra Modi&#8217;s recent visit to Bhutan strengthened the special ties of friendship and cooperation between the two countries.<\/li>\n<p><\/p>\n<p><strong>Brief on India-Bhutan Relations<\/strong><\/p>\n<li class=\"ms-5\">Diplomatic relations between India and Bhutan were established in 1968.<\/li>\n<li class=\"ms-5\">The basic framework of India- Bhutan relations has been the Treaty of Friendship and Cooperation signed in 1949.<\/li>\n<li class=\"ms-5\">The treaty was revised in 2007 giving Bhutan more autonomy while reaffirming mutual respect for sovereignty and close cooperation.<\/li>\n<li class=\"ms-5\">In 2024, Prime Minister Shri Narendra Modi was conferred the Order of the Druk Gyalpo, Bhutan\u2019s highest civilian decoration, the first foreign leader to be given the award.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/12-11-2025\/pm-visit-to-bhutan\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59001","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/59001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=59001"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/59001\/revisions"}],"predecessor-version":[{"id":59072,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/59001\/revisions\/59072"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=59001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=59001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=59001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}