Modi In Bhutan

By Dr. D.K. Giri

(Prof of Practice, NIIS Group of Institutions)

Prime Minister Narendra Modi was on a two-day visit to the Himalayan kingdom of Bhutan. This was a short visit with long-term objectives. Bhutan is strategically critical for India as a buffer against China. Remember, the military face-off in Doklam, Bhutan. Also, both countries are bound for centuries with cultural, spiritual and developmental ties.

On 11 November, the first day of his visit, Modi was the Guest of Honour on the occasion of the 70th birth anniversary of His Majesty the Fourth Druck Galpo at the Chamllingphang Stadium. While reciprocating Modi’s good-will gesture, the King of Bhutan, King Jigme Khesar Namgyel Wangchuk expressed his country’s gratitude for the presence of the Holy Piprahwa Relics of Lord Buddha from India which is currently in Thimpu for public veneration during the Festival.

Modi inaugurated an important Buddhist spiritual symbol. Bhutan’s Prime Minister elusively acknowledged this, “an accomplished spiritual master Narendra Modi inaugurated and blessed the sacred Kalachakra Empowerment which began today as part of ongoing Global Prayer Festival´. Kalachakra has enormous significance for Buddhists across the world.

However, the key highlight of the visit was the inauguration of 1020MW Punatsangchhu-II Hydro Electric project. Modi called this project a ‘Symbol of Friendship, and exemplary cooperation’ between Bhutan and India. Both countries agreed to resume work on the Punatsangchhu-I and complete it soon. They welcomed the electricity export from Punatsangchhu to India. Bhutan gratefully acknowledged India’s contribution of INR 40b for the energy projects.

Having done the ceremonial parts, Modi, as usual, got down to business. He promised continued support for Bhutan’s economic growth and sustainability. He especially, declared support for Bhutan’s 13th five-year plan with economic stimulus programme that marked India’s commitment to helping Bhutan secure key development priorities and promote sustainable growth across sectors. He also expressed support for King Wangchuk’s noble vision for the Gelephu Mindfullness City.

Modi confirmed that such projects align with India’s Act-East Policy. Modi announced that immigration check post at Hathisar in Assam will be set up to facilitate easy movement of investors and visitors to this promising project at Gelephu. The King appreciated India’s liberal assistance in building Gyalung academics. Bhutan acknowledged the consecration of the Royal Bhutan Temple in Rajgir, Bihar and India’s decision to allocate land in Varanasi for Bhutanese temple and guest house.

Among other things, the contribution of India’s teachers and healthcare professionals was appreciated in strengthening STEM Education and Medical Services in Bhutan. According to the Indian delegation, accompanying Modi, the phase-II of UPI will allow Bhutanese travelers to make payments in India by using local mobile apps by scanning the QR codes. Three MoUs were signed during the visit: First was on cooperation in renewable energy, second cooperation in health and medicine and third, institutional linkages between the Pema Secretariat, Bhutan and National Institute of Mental Health and Neuro Sciences (NIMHANS), India. MoUs for two railway links, one, from Gelephu to Kokrajhar and second, from Samtse, Bhutan to Banarhart, West Bengal signed in September this year were reviewed. Also, cooperation in Fertilizer, STEM, Fintech and Space was also reviewed.

India-Bhutan relations have been marked by historical depth and enduring friendship. It started with the Fourth King Jigme Singye Wangchuk ascending the thrown at the age of 16 in 1972. Following his father´s policy of close ties with India, he planned his country´s economy on the Indian model of Planning Commission. He constituted the Planning Commission for framing Five-Year Plans. With Indian support, he designed the First Five-Year Plan after taking over the reins of the country. He aligned Bhutan´s currency (Ngultrum) with Indian Rupee in 1974 to facilitate bilateral trade and financial integration.

On diplomatic sector, he aligned his foreign policy with India‘s; for all external initiatives he kept India informed. Bhutan joined UN in 1971 and SAARC in 1985 as a Founding Member. Bhutan conducted border dialogues with China in consultant with Indian leadership. This process was followed on the basis of India-Bhutan Treaty (1949) which provided that Bhutan would be ´guided by India´ in mutual cooperation and sovereign equality. However, this treaty was replaced by India-Bhutan Friendship Treaty (2007). On security, India supported Bhutan in eliminating insurgent camps from Bhutanese soil in a special project called Operation All Clear (2003).

On economic relations, hydropower cooperation has been the backbone of Bhutanese economy. With India´s support consisting of a grant-loan model (60:40), these projects became the bedrock of Bhutan´s export revenue and India´s clean energy import. In this visit under discussion, Prime Minister deepened the hydropower cooperation. Modi announced 4,000 crore INR on concessional credit line for energy projects. He reaffirmed another 10,000 crore INR assistance for Bhutan´s 13th Five-Year Plan for development across multiple sectors that include infrastructure, agriculture, finance, and healthcare.

The cultural ties have been a significant component of India-Bhutan bilateral relations. Bhutan has rich Buddhist heritage. The famous development economist E.F. Schumacher wrote his legendary essay called ´Buddhist Economy´ after visiting Bhutan. This concept is currently used as ´compassionate economy´ by scholars across the world. Another rich legacy of the Fourth King is the concept of Gross National Happiness (GNH) which is recognized globally as a commendable philosophy. It redefines development focused on human well-being, not just GDP.

Bhutan visit by Indian Prime Minister holds a critical security dimension. Bhutan buffers India and China. While Bhutan has intimate ties with India, it has territorial disputes with China. In 2017, Doklam´s standoff highlighted the strategic importance of Bhutan as India militarily intervened to prevent China from building a road in a disputed area between China and Bhutan. Bhutan allowed Indian troops to enter its territory to resist Chinese incursions in Doklam. Beijing building the road in Doklam threatened India´s ´Chicken Neck´ which connects the entire North-Eastern States to the rest of India. The Chicken Neck which is also called Siliguri Corridor, a small stretch of land around the city of Siliguri in West Bengal about 20-22 kms at the narrowest section. Bhutan lies at the Northern end of the Corridor and has disputed borders with China. Chinese military was trying to come close to the ‘chicken neck´ through Doklam. This corridor also connects as a transfer point with Bhutan, Nepal, Bangladesh, Sikkim (now in India). According to the Indian Army, the Siliguri Corridor is the army´s strongest defensive line.

The Prime Minister‘s visit though appears to be a goodwill step, rejuvenated the multi-dimensional India-Bhutan partnership. Cooperation in hydropower, connectivity, innovation, spiritual bonds, constitute a model of mutual trust, respect and shared prosperity. What is more, Bhutan, for its strategic location is critical for India; hence the importance of maintaining the model. — INFA