Hindu Editorial Analysis : 21-March-2024

India and Bhutan have enjoyed a close friendship for over 50 years. Their relationship thrives on constant communication, cooperation, and care. This essay explores the key aspects that define their partnership.

Overview of Diplomatic Ties

Establishment of Relations

  • Formal diplomatic relations began in 1968.
  • The Treaty of Friendship and Cooperation, signed in 1949, is the foundation of this bond.
  • This treaty was renewed in February 2007, reinforcing their commitment to collaboration.

High-Level Exchanges

  • Frequent meetings between leaders have strengthened their relationship.
  • These exchanges help build trust and foster cooperation in various sectors.

Economic Partnership

Trade Agreements

  • The India-Bhutan Agreement on Trade, Commerce, and Transit was first signed in 1972.
  • This agreement has been revised several times to promote free trade.
  • India is Bhutan’s largest trading partner, and bilateral trade reached INR 11,178 crores in 2022.

Investment in Bhutan

  • India has invested in various sectors, including:
    • Banking
    • Manufacturing
    • Electricity generation
    • IT services
  • These investments support Bhutan’s socio-economic development and enhance integration.

Development Assistance

  • India has provided economic assistance to Bhutan since the 1960s.
  • Recently, India contributed Rs 5000 crore to Bhutan’s 12th Five Year Plan, reflecting its commitment to Bhutan’s growth.

Hydropower Cooperation

Key Projects

  • Hydropower cooperation is a vital aspect of their economic relationship.
  • Bhutan’s hydropower projects have been developed through partnerships, benefiting both nations.
  • Projects like the Mangdechhu Hydroelectric Project showcase successful collaboration.
  • The Punatsangchhu-II project is set to be completed in 2024, further strengthening this partnership.

Educational and Cultural Ties

Scholarships and Cultural Exchanges

  • India is a popular destination for Bhutanese students, offering over 1000 scholarships each year.
  • Cultural exchanges, supported by the India-Bhutan Foundation, promote understanding between the two countries.

Human Resource Development

  • Programs like the Nehru Wangchuck Scholarship Scheme and ICCR Scholarships aid in skill development.
  • The ITEC program further enhances capacity building in Bhutan.

New Avenues for Collaboration

Technology Partnerships

  • Recent initiatives focus on digital innovation and space cooperation.
  • Projects like ‘Digital Drukyul’ aim to improve technology access and integration.
  • Joint satellite development reflects their commitment to leveraging technology for mutual benefit.

Recent Developments

  • Progress on rail connectivity and the establishment of Integrated Check Posts enhances trade and connectivity.
  • Digital initiatives like the interoperability of RuPay and the BHIM app emphasize inclusive growth.

Why In News

India and Bhutan have been the closest of partners and the best of friends for over 50 years, demonstrating a deep bond rooted in mutual respect and understanding. Both countries require constant tending, regular dialogue, and a lot of care and cooperation to ensure their relationship continues to flourish in an ever-changing global landscape.

MCQs about India-Bhutan Relations

  1. What year marked the establishment of formal diplomatic ties between India and Bhutan?
    A. 1949
    B. 1968
    C. 2007
    D. 1972
    Correct Answer: B. 1968
    Explanation: Formal diplomatic relations between India and Bhutan were established in 1968, building on the foundation laid by the Treaty of Friendship and Cooperation signed in 1949.
  2. Which sector has received significant investment from India to support Bhutan’s socio-economic development?
    A. Agriculture
    B. Hydropower
    C. Textile
    D. Tourism
    Correct Answer: B. Hydropower
    Explanation: Hydropower cooperation is a key aspect of the economic relationship, with projects developed through partnerships that significantly contribute to Bhutan’s socio-economic progress.
  3. How much did India contribute to Bhutan’s 12th Five Year Plan?
    A. INR 1,000 crores
    B. INR 2,500 crores
    C. INR 5,000 crores
    D. INR 10,000 crores
    Correct Answer: C. INR 5,000 crores
    Explanation: India contributed INR 5,000 crores to Bhutan’s 12th Five Year Plan, highlighting its commitment to supporting Bhutan’s developmental aspirations.
  4. Which program aims to facilitate skill development and capacity building in Bhutan?
    A. ICCR Scholarships
    B. Digital Drukyul
    C. Mangdechhu Project
    D. Integrated Check Posts
    Correct Answer: A. ICCR Scholarships
    Explanation: The ICCR Scholarships, along with other initiatives like the Nehru Wangchuck Scholarship Scheme, aim to facilitate skill development and capacity building in Bhutan, enhancing educational opportunities for its citizens.

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