India-Bhutanese Strengthened Ties

Thimphu, Bhutan—Narendra Modi, the 15th and newly elected prime minister of India, announced June 16th that he will expand financial support to neighboring Bhutan. This announcement comes amidst Modi’s first state visit as prime minister after accepting an invitation from His Majesty, Jigme Khesar Namgyel Wanchuck, the King of Bhutan.

Historical Friendship

The trip highlights the historical friendship between Bhutan and India. As one of the first countries to recognize India’s independence from Britain in 1947, Bhutan is now the largest trading partner of India. Both countries are known to enjoy regular, high level exchanges since the 1949 Treaty of Friendship. The treaty promised peace and non-interference in India and Bhutan’s internal affairs with India acting as a guide in Bhutan’s foreign and defense affairs. The treaty was renewed in 2007 in favor of greater sovereignty for Bhutan.

Trip Highlights

Modi’s trip included separate banquets with the King of Bhutan and Bhutanese Prime Minister Lyonchhen Tshering Tobgay and the inauguration of a new Supreme Court building that had been completed with the financial assistance of India.

The meeting between the leaders covered topics ranging from bilateral relations to economic expansion. Both sides were satisfied with their socio-economic development as a result of Bhutan-India relations. Modi reiterated India’s continued support of Bhutan’s 11th five year plan and Tobgay in turn expressed appreciation for India’s generous development assistance towards Bhutan. The new joint Indian-Bhutanese Kholongchu hydroelectric power plant was discussed at length with its construction beginning at the end of this year Modi also promised India’s continued assistance towards developing Bhutan’s educational and IT sectors and the support of 5 billion rupees for Bhutan’s economic stimulus plan.

The end of the meeting marked a consensus on greater trade integration, mutual security, and cooperation.