India-Bhutan ties in 2024 and beyond
Last Updated on January 1, 2025 6:44 am
India’s Ambassador to Bhutan Sudhakar Dalela talks to Kuensel Reporter Thukten Zangpo about India-Bhutan relations, trade and technology, and the visionary initiatives like Gelephu Mindfulness City, among others
2024 has been a busy year in both India and Bhutan, with both countries undergoing elections. What have been the key highlights in bilateral partnership for you, as Ambassador of India to Bhutan?
Yes, indeed, it has been a busy year in both our countries, and I am delighted to share that the same energy and sense of purpose has guided us in advancing bilateral partnership across sectors. This is evident from the unprecedented number of high-level interactions this year, enabling us to realise concrete outcomes.
It was our privilege to receive His Majesty the King in India earlier this month on an official visit. Prime Minister Shri Narendra Modi paid a State visit to Bhutan in March this year, when he was honoured with the ‘Order of the Druk Gyalpo’. We have been honoured to welcome Prime Minister Dasho Tshering Tobgay to India on several occasions this year. This month, the Chief Minister of Assam paid an official visit to Bhutan and participated in the National day celebrations.
We have seen a renewed vigour in our bilateral engagement at every level. As we transition to year 2025, the guidance from His Majesty the Druk Gyalpo and the political leadership on both sides will continue to steer our cooperation, looking into the future.
In recent months, we have seen several initiatives to boost cross-border trade and connectivity. How do you think such initiatives will help people on both sides?
We have been working together on a series of connectivity and trade facilitation initiatives in Mission mode. The designation of Darranga (Assam), which borders Samdrupjongkhar (Bhutan), as an immigration check post for third country nationals, was one of the major initiatives in this direction. It will boost the regional economy, enhance tourism, and deepen people-to-people ties.
The Commerce Secretary level meeting held in September 2024 resulted in several positive outcomes including on strengthening trade infrastructure, addition of new routes for the trade, facilitation for export of arecanut, food products, and new species of timber to India.
Most recently, a delegation from Assam, led by the Chief Minister, visited Thimphu. One of the highlights of the visit was a business interaction on the “Advantage Assam 2.0: Infrastructure and Investment Summit”, to be held in February 2025 in Guwahati. We are looking forward to high-level participation from Bhutan at the Summit, which will allow us to discuss new opportunities for strengthening trade and investment ties.
Initiatives such as the development of cross-border rail-links, establishment of Integrated Check Post, digital connectivity, additional routes for bilateral trade along the border will be accorded priority.
His Majesty has unveiled his vision for the Gelephu Mindfulness City and was recently in India to discuss GMC as well as overall bilateral cooperation with Indian leadership. How does India view the GMC, and what avenues for cooperation does it open up for the two countries?
The visionary initiative of His Majesty for establishing a Gelephu Mindfulness City has ushered in a new chapter in Bhutan’s development journey, and India stands ready to be a committed partner in this undertaking. During his recent visit, His Majesty shared with the political leadership in India the progress made in implementing his vision for the Gelephu Special Administrative Region—a vision for urban development that combines economic growth with mindfulness and sustainable living.
It will not only create new economic opportunities in Bhutan but also for the region, and further strengthen economic and investment linkages between the two countries.
We are working on several connectivity initiatives such as rail link and road development work to Gelephu. There is considerable interest among Indian businesses for participating in the development of the GMC. We look forward to continued engagement to appreciate various dimensions of the project, and to harness new opportunities for mutually beneficial collaborations. We view the GMC initiative not just from an economic prism, but as an opportunity to further nurture the unique bond of friendship and cooperation between our two nations.
How would you view India-Bhutan development partnership going forward?
It has been India’s privilege to be a close development partner of Bhutan. Our development partnership has enabled the implementation of several projects impacting people’s lives in a positive manner over the years. I say this with conviction after visiting several of Bhutan-India Friendship Projects across Dzongkhags and interacting with local communities.
Prime Minister Shri Narendra Modi, during his visit to Bhutan this year, announced development support of Nu. 100 billion for the 13th FYP period of Bhutan. It is a reflection of the strength of our unique partnership and of our shared commitment to expand it further across sectors.
Going forward, we will continue to work together with the Royal Government in implementation of projects under the 13th FYP across sectors, in line with the vision of the His Majesty the King of Bhutan and the priorities of the Government and people of Bhutan.
Both India and Bhutan are focusing on technology to meet their national development priorities. How do you see India-Bhutan technology partnership evolving?
The ongoing digital transformation is the most remarkable change of our times. India is working with Bhutan on several initiatives to advance technology cooperation. After the successful launch of India-Bhutan Satellite in 2022, we have developed a concrete road map for cooperation in the space sector. In the FinTech domain, after the introduction of RuPay card and UPI payment systems in Bhutan, the focus now is on developing the interoperability of QR codes. Other potential areas of collaboration lie in the domain of digital public infrastructure, agri-tech, the startup and innovation space, artificial intelligence and machine learning applications.
India has set itself on a path to become a developed country by 2047 and Bhutan aims to become a high-income country by 2034. Leveraging technology for realising this vision through partnerships in capacity building and knowledge sharing would play an important role. Prestigious Indian institutions like IIT Guwahati are already discussing collaboration with Bhutan in STEM education and research capabilities. The opportunities for strengthening our partnership in the tech sector are limitless. This sector will be a key focus area for us in 2025.
Hydropower cooperation has been one of the main pillars of India-Bhutan cooperation. How do you see the future of clean energy cooperation?
Bhutan and India have enjoyed a long-standing collaboration in the hydropower sector. On the National Day of Bhutan, two units of the 1,020 MW Punatsangchhu-II project were successfully synchronized with the grid. The project team is working diligently towards completion of different packages and for the Project’s full commissioning. As for the Punatsangchhu-I project, a way forward for construction of the dam is being deliberated by technical experts. India is committed to completing the project in a technically safe manner.
As regards future cooperation, in March this year, both sides released a Joint Vision Statement on the India-Bhutan Energy Partnership, laying out an ambitious framework for further expanding it. This partnership has the potential to benefit both countries by enhancing energy security, strengthening our economies, generating employment and enhancing export earnings.
The enthusiastic participation from leading Indian energy entities in the Renewable Energy Roundtable held in Thimphu this year clearly indicates their interest in closely working together with their Bhutanese counterparts in undertaking new projects. I am upbeat about the future trajectory of our clean energy partnership.
The Gyalsung National Service Programme was successfully launched this year. How has India partnered with Bhutan on this visionary initiative, and how can we work together on skill development?
It has been a privilege for Government of India to partner with Bhutan on the Gyalsung National Service Programme — a visionary initiative of His Majesty the King of Bhutan, which puts youth and skilling at the heart of nation-building endeavours.
Our association with the Gyalsung commenced in February 2023, when we finalised our partnership for the “Desuung for Gyalsung” Programme with initial grant support of Nu 2 billion. Subsequently, India and Bhutan signed a MoU for concessionary financing arrangements of Nu 15 billion for the development of infrastructure for the Gyalsung Project.
We have successfully organised two batches of ‘Training of Trainers’ for the Gyalsung skilling component. More broadly, in the 13th FYP, we have laid particular emphasis on capacity development and skilling. We are committed to further expanding our skill development partnership, in line with the priorities of the Royal Government of Bhutan.
Excellency, how do you see the role of cultural exchange, sports, youth engagement, and people-to-people interactions in strengthening the relationship between India and Bhutan.
Strong people to people ties and deep cultural and spiritual connect are at the heart of India-Bhutan ties. While these are the real drivers of our partnership, it is imperative that we continue to nurture these bonds in new ways, responding to the aspirations of young people. Towards this objective, during the landmark visit of Prime Minister Modi to Bhutan in March this year, both sides concluded an MoU on Cooperation in Sports and Youth.
This year, the Nehru Wangchuck Cultural Centre, Thimphu launched a series of initiatives under the themes of Arogya, Samvad, and Kala Utsav, aimed at fostering dialogue in areas such as health and wellness, cultural heritage, performing arts, textiles, cinema and theatre. The NWCC will continue to organise activities that celebrate the rich cultural heritage and traditions of both India and Bhutan.
The India-Bhutan Foundation is supporting several initiatives to strengthen people-to-people connections. The opening of Bhutan’s Lhakhang in Rajgir, Bihar in 2025 will be yet another landmark initiative celebrating our friendship and spiritual connect.
Ambassador, you have a long-standing association with Bhutan by virtue of your previous roles. What changes have you seen in Bhutan, and how do you think our bilateral partnership has responded to those changes?
It has been an honour for me to be closely associated with the India-Bhutan partnership, by virtue of the responsibilities I have been entrusted with in my journey as a diplomat over last three decades. I am delighted to have witnessed the tremendous progress that Bhutan has made in recent years, across all fronts.
Today, the youth in both our countries are aspirational, ambitious and brimming with energy and a will to excel. Our partnership has been constantly adapting to meet common aspirations for progress, happiness, and prosperity.
Besides focusing on traditional areas of cooperation in energy, development, trade and economic, and education sectors, India and Bhutan are working closely together in new and exciting areas such as space, fintech, digital space, and more.
I believe that it is the agility and responsiveness of the India-Bhutan partnership that has allowed it to grow from strength-to-strength. I am convinced that the journey ahead for India-Bhutan ties is one of immense potential and opportunities.