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India doubles Five-Year-Plan assistance to Bhutan which seeks speedy Tibet-border settlement with China

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(TibetanReview.net, Mar23’24) —Amid reports that Bhutan and China are likely to reach a final settlement of their dispute over the latter’s occupied Tibet border, with significant potential security implications for India, New Delhi has on Mar 22 announced a doubling of its Five-Year Plan aid to Thimphu to Rs 100 billion.

India will provide Rs 100 billion as financial support to Bhutan over the next five years, reported hindustantimes.com and others Mar 22. Prime Minister Narendra Modi has made the announcement as the two sides signed several agreements to bolster cooperation in areas ranging from energy to space during his two-day state visit to Bhutan.

As Beijing’s stepped up its courting of Bhutan for diplomatic links, with the dangling of the promise of a speedy border dispute settlement, Bhutan has expressed satisfaction with cooperation with India on mutual security, the timesofindia.com Mar 23 cited a joint statement between the two sides as saying.

The two sies have agreed to continue coordination on “issues relating to our national interests”.

The report said India and Bhutan signed seven MoU’s and agreements, while initiating another for rail links between the two countries, as Modi held talks with his counterpart Mr Tshering Tobgay, who received him at Paro airport, and called on King Jigme Namgyel Wangchuck.

Indian PM Narendra Modi with Bhutanese PM Tshering Tobgay. (Photo courtesy: X/Tshering Tobgay)

“I want to assure you that our cooperation will reach new heights in the next five years. We will work on new possibilities for cooperation in trade, connectivity, … and energy,” Modi has said, adding that measures for improved connectivity will soon see fruition in the form of a new airport, Banarhat-Samtse and Kokrajhar-Gelephu rail links, and Brahmaputra waterways.

Bhutan presented to the Indian prime minister the Order of Druk Gyalpo, Bhutan’s highest civilian honour that was conferred on him in 2021, by the King who said India’s future is bright with Modi at the helm, the report noted. Modi is the first foreign national to receive the honour.

This was Modi’s third visit to Bhutan.

Asked if Bhutan’s border talks with China figured in the meetings, India’s foreign secretary Vinay Kwatra has said in a guarded response that it was a matter between Bhutan and China.

“As far as India’s ties with Bhutan are concerned, these stand on their own footing, independent of any other relationship. There are some core fundamentals in our relationship, including shared values, trust, mutual respect, and sensitivity to each other’s concerns,” Kwatra has said.

The two countries have also issued a joint vision statement on their energy partnership, pledging to ensure energy security in the region.

“We will continue to expand our clean energy partnership in the sectors of hydropower, solar and green hydrogen and jointly develop new projects, which channel our technological prowess, vibrancy of the business sector, and skilled talent of both countries to enhance energy security in the region,” the joint statement was quoted as saying.

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