- Prelims: Current events of international importance(India-Bhutan ties, Petroleum Agreement, Doklam region, Gelephu etc
- Mains GS Paper II: Bilateral, regional and global grouping involving India, Significance of Indo-Pacific for India etc
ARTICLE HIGHLIGHTS
- The Prime Minister will visit Bhutan, announced the visiting Bhutanese Prime Minister after the two leaders met in Delhi.
INSIGHTS ON THE ISSUE
Context
India-Bhutan Relations:
Key Highlights of the India-Bhutan Bilateral Talks:
Petroleum Agreement:
● Signed an agreement on the supply of petroleum products to ensure a reliable and sustained supply from India to Bhutan, fostering economic cooperation and growth in the hydrocarbon sector.
● Food Safety Collaboration:
○ Bhutan’s Food and Drug Authority and India’s Food Safety and Standards Authority (FSSAI)signed an agreement to enhance cooperation in food safety measures.
■ It will ensure compliance with food safety standards and reduce compliance costs.
● Energy Efficiency and Conservation:
○ Both countries signed an MoU on energy efficiency and conservation that demonstrates a commitment to sustainable development.
● India aims to assist Bhutan in enhancing energy efficiency in households, promoting the use of energy-efficient appliances, and developing standards and labeling schemes.
● Border Dispute Resolution:
○ The Bhutanese Prime Minister’s visit coincides with ongoing discussions between China and Bhutan to resolve their border dispute, which has implications for regional security, particularly in the Doklam region.
○ In August 2023, China and Bhutan agreed on a plan to address their border disagreement.
○ This was followed by the formal signing of the agreement in October 2021.
■ This agreement came four years after a conflict between India and China in Doklam, sparked by China’s attempt to construct a road in the area in 2017.
Bhutan’s Regional Economic Hub in Gelephu:
● Bhutan’s plans for a regional economic hub in Gelephu, mark a significant step towards regional development and connectivity.
● The project, initiated by Bhutan’s King(2023): aims to establish the Gelephu Mindfulness City” (GMC) spanning 1,000 square kms.
● Gelephu will prioritize sustainable development, focusing on non-polluting industries such as IT, education, hospitality, and healthcare.
● It is Positioned at the crossroads of India’s “Act East” policy and the emerging connectivity initiatives spanning Southeast Asia and the Indo-Pacific region.
● Gelephu holds strategic significance in fostering economic integration and trade facilitation.
- Gelephu city is expected to focus on human well-being too with an emphasis on yoga, rest and recreation, spa therapies and mental relaxation channels.
Hydropower cooperation:
● Hydropower cooperation is the bedrock of India’s relations with Bhutan.
● Several cooperative hydro projects have been completed and commissioned by the two governments
○ It provides Bhutan with a stream of revenue due to which it has graduated out of the Least Developed Country status.
● The delayed Punatsangchhu-II hydropower project is expected to be completed in 2024
● A new joint venture model was developed for the construction of hydro projects between India and Bhutan
○ none of the proposed five projects has taken off.
○ 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.
Other areas of cooperation:
- India has also been a major development assistance partner to Bhutan
- India contributed ₹5,000 crore to its 12th Five Year Plan which just concluded.
Way Forward
- India must contribute to the success of the Gelephu Mindfulness City and can perhaps consider the following measures:
- commence direct flights between Mumbai/Delhi and Gelephu
- provide technology and knowledge in building hard infrastructure to Bhutan (the private sector will take the lead)
- encourage high-end Indian tourists and businesspersons to visit Gelephu in controlled numbers
- Encourage Indian businesses to set up shop in the city.
- Gelephu is next to remote parts of West Bengal and Assam and the success of the Mindfulness City will have positive socio-economic spillovers for these geographies as well.
- It will provide an example of the win-win cooperation between India and Bhutan.
QUESTION FOR PRACTICE
Project ‘Mausam’ is considered a unique foreign policy initiative of the Indian Government to improve relationships with its neighbors. Does the project have a strategic dimension? Discuss. (UPSC 2015) (200 WORDS, 10 MARKS)
