Strengthening India-Bhutan Ties
Source: Closer together: India and Bhutan can change the development story of the region (The Hindu, November 08, 2023)
- Infrastructure Talks: Prime Minister Narendra Modi of India met with King Jigme Khesar Namgyel Wangchuck of Bhutan. They agreed to work on infrastructure and connectivity.
- Rail Links and Trade Routes: They plan to finish surveys for a railway that will connect Gelephu in Bhutan to Kokrajhar in Assam. They’re also talking about a new rail link from Bhutan to West Bengal. Additionally, they want to improve trade between Bhutan and Bangladesh through a separate railway.
- Border Upgrades: They will upgrade the checkpoints along the India-Bhutan border for better movement and security.
- A New Horizon for the Region: These infrastructure projects are set to change the future of several areas. They will affect West Bengal, the northeast of India, parts of Bhutan, and northern Bangladesh. The development in these regions could see significant benefits from these initiatives.
Bhutan’s Economic Outlook
- Special Economic Zone and Airport Development: Bhutan plans to improve its economy after the pandemic and climate change challenges. The country’s focus is on a new Special Economic Zone near Assam’s border and a new airport in Gelephu. These initiatives are expected to boost growth and bring in more investment.
- Regional Trade Enhancements: With the Preferential Trade Agreement with Bangladesh, Bhutan looks to expand its exports. This trade is beneficial for the entire sub-region, increasing market opportunities for local and neighboring producers.
- Energy Exchange Initiative: India is playing a key role in regional economic development by integrating more hydropower sources from Bhutan and Nepal. Eventually, they plan to distribute energy across Bangladesh and Sri Lanka. This will help to balance the economic scales in India’s northeast and attract global partners like the World Bank and Japan. It aims to turn this area into a thriving economic hub.
Regional Connectivity in South Asia
- Building New Trade Linkages: Due to political tensions with Pakistan and Myanmar’s sanctions, India must explore alternative routes. This will improve trade and land access to the East. Partnering with nearby nations can create sustainable connectivity, develop markets, and establish energy links.
- Navigating Geopolitical Shifts: Current geopolitical challenges are pushing regional groups to unite, but South Asia remains fragmented. There is a pressing necessity for cohesion to enhance regional security and prosperity.
- Responding to China’s Influence: India is alarmed by China’s growing presence in South Asian commerce, infrastructure, and strategic alliances. There’s unease over a potential Bhutan-China boundary agreement. This could affect India’s strategic Siliguri Corridor, also known as the “Chicken Neck”. Strengthening relations with Bhutan and other neighbors can provide both security and economic growth.
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