Prime Minister Narendra Modi’s recent visit to Bhutan carried significance that extended far beyond bilateral economic issues. Bhutan, a tiny landlocked Himalayan nation bordered by both India and China, has been vulnerable to Beijing’s territorial ambitions and predatory tactics. Given its strategic location and long-standing cultural ties with Thimphu, India remains vigilant to the evolving geopolitics of the region and is aware of its responsibility to counter China’s aggressive moves. Modi’s two-day state visit, during which several initiatives were launched to deepen bilateral cooperation in energy, connectivity, and other sectors, came as a reaffirmation of India’s genuine commitment to stand by its neighbour. China has frequently employed a carrot-and-stick strategy, offering aid on the one hand and constructing settlements inside Bhutanese territory on the other. The 2017 stand-off at the Doklam Plateau, a strategic tri-junction, is still fresh in India’s memory. India’s handling of the two-month-long military face-off demonstrated to the world that the country will not allow itself to be pushed around at any cost. The development also reflected New Delhi’s commitment to protect territorial and security interests of Bhutan in tune with the bilateral security agreement. India has been a traditional supporter of the kingdom, with regular concessionary loans, electricity purchases, and a defence protection pact. During the latest visit, Modi, along with Bhutanese King Jigme Khesar Wangchuck, inaugurated the 1,020 MW Punatsangchhu-II hydroelectric project. The occasion also marked the King’s 70th birthday. The project is hailed as a milestone in the mutually beneficial bilateral partnership.
India also announced a new concessional line of credit of Rs 4,000 crore for Bhutan to fund other energy projects. Bhutan currently produces all its electricity from renewable energy and has a negative carbon footprint. The latest hydroelectric project will increase electricity production from hydro sources by 40 per cent. India will also assist in the resumption of work on the main dam structure of the 1,200-MW Punatsangchhu project. Both the leaders signed several MoUs covering renewable energy, health and medicine. Bhutan remains a critical regional partner for India in infrastructure, trade, energy and security. New Delhi is strongly opposed to China extending its footprint in Doklam, as the high-altitude plateau lies close to the sensitive Siliguri Corridor, the narrow tract of land that separates India’s Northeastern States from the rest of the country. Beijing’s hegemonic ambitions have already created several flashpoints. Peeling Bhutan away from India has been part of its long-term strategy to ensure unquestioned dominance in Asia. India’s respect for Bhutan’s freedom to chart its own course remains the cornerstone of the robust bilateral relationship. This was pledged in the 2007 Friendship Treaty. For China, on the other hand, diplomatic relationships are crucial for its status as an Asian power. It already has a vice-like grip over Islamabad as the China–Pakistan Economic Corridor (CPEC) has the potential to turn Pakistan into a client State.