India Bhutan Relations and NFP, Recent Developments

Context: The success of Gelephu Mindfulness City is expected to positively impact the socio-economic landscape of neighbouring Indian regions, further illustrating the win-win nature of India-Bhutan cooperation.

India-Bhutan Relationship

• Historical Partnership: Bhutan and India have maintained a close and friendly partnership for over 50 years, characterised by mutual respect and equality despite their size differences.
• Mutual Respect and Support: India respects Bhutan’s identity, religious practices, and economic ambitions, contributing to Bhutan’s prosperity while preserving its unique lifestyle.
  • Bhutan acknowledges India’s role in its development and does not perceive any threat to its sovereignty from India, fostering a unique level of trust between their leaderships.

Recent Developments and Future Prospects

• The Gelephu Mindfulness City Initiative: The Gelephu Project refers to the ambitious initiative by Bhutan to establish a Mindfulness City in Gelephu, located in southern Bhutan.
  • This initiative was highlighted during the King of Bhutan’s visit to India in November 2023.
  • The project aims to create a Special Economic Zone (SEZ) that focuses on attracting foreign investment while prioritising sustainability, well-being, and environmental concerns.
  • Objective: To drive economic prosperity in Bhutan by attracting foreign investment into a zone dedicated to mindfulness, well-being, and environmental sustainability.
  • Features: Emphasis on human well-being with facilities and services related to yoga, spa therapies, rest, recreation, and mental relaxation channels.
    • Commitment to maintaining Bhutan as a carbon-negative country despite developmental activities.
  • India’s Role: India, including its business entities, is expected to play a significant role in supporting the development of Gelephu Mindfulness City.
    • This support aligns with the broader objectives of economic cooperation and mutual development between India and Bhutan.
  • Impact: The project aims to lead Bhutan to higher income levels without compromising its environmental commitments.
    • It is also expected to have positive socio-economic spillovers for the neighbouring regions of India, enhancing cross-border cooperation and regional development.
• Continued Bilateral Engagements:
  • The reciprocal visits by the Prime Ministers of Bhutan and India symbolise the ongoing commitment to strengthening their relationship.
  • These engagements are indicative of India’s “Neighbourhood First” Policy and are promising for the continuous growth of India-Bhutan ties.

India’s Neighbourhood First Policy

The concept of the Neighbourhood First Policy came into being in 2008 to forge strong neighbourhood relations based on a consultative, non-reciprocal and outcome-oriented approach.

Principles of ‘Neighbourhood First’ policy

• Sovereignty and territorial integrity
• Mutual respect and sensitivity
• Non-interference in internal affairs.
• Shared prosperity
• Connectivity for regional integration
• People-to-people exchanges
• The priority countries under the policy are Afghanistan, Bangladesh, Bhutan, Nepal, Maldives, Myanmar, Pakistan and Sri Lanka.

Recent developments related to the ‘Neighbourhood First’ policy

• In 2014, the Indian Prime Minister(PM) invited all heads of state from South Asia to his oath-taking ceremony.
• Stronger ties with Afghanistan: The Indian PM visited Afghanistan in 2015 and inaugurated the Afghan Parliament, which was made with the help of India.  He visited Afghanistan again in 2016 to inaugurate the Salma Dam in Herat.
• Ties with Nepal: The PM was the first Indian PM to visit Nepal after 17 years in 2014.
• Ties with Bangladesh: PM Modi visited Bangladesh in 2015, where India and Bangladesh exchanged instruments of ratification regarding the agreement on the historic land boundary.
• BBIN: The BBIN Motor Vehicle Agreement for the regulation of passenger, personal and cargo vehicular traffic amongst BBIN members was signed in 2015.
• Vaccine Maitri: India, through its vaccine diplomacy, extended help on priority to its neighbours during the COVID-19 pandemic.

Anchor of Cooperation: Hydropower

• Hydropower Projects: The cooperation in hydropower projects stands as a cornerstone of the India-Bhutan partnership, benefiting both nations economically and environmentally. The completion of the Punatsangchhu-II project in 2024 exemplifies successful government-to-government cooperation in hydropower.
• Reevaluation of Joint Venture Model: The need to reassess the joint venture model for hydro projects is highlighted, suggesting a return to more successful cooperation frameworks.

Development Assistance and Future Measures

• India’s Development Assistance: India’s significant contribution to Bhutan’s 12th Five-Year Plan and its attention to Bhutanese priorities showcase a partnership aimed at mutual prosperity.
• Proposed Measures for Gelephu Mindfulness City:
  • Initiating direct flights between major Indian cities and Gelephu.
  • Leveraging Indian technology and expertise in infrastructure development.
  • Encouraging high-end tourism and business engagements from India.
  • Supporting Indian businesses in establishing a presence in Gelephu, benefiting both countries’ economies and regional socio-economic development.

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