Beyond Borders: Reimagining Indo–Bhutan Relations in the 21st Century
The Treaty of Friendship and Cooperation – signed in 1949 and renewed in 2007 – is the bedrock on which the Indo-Bhutan partnership has thrived and grown into one based on “mutual trust, goodwill and understanding.” As India and Bhutan grow closer, marked by frequent high-level visits and regular interaction across sectors, it is upon both sides to derive the benefits of a “win-win relationship.” Chirang, sharing a border of nearly 70 km with Bhutan and considering its proximity to the envisioned Gelephu Mindfulness City Project, now finds itself at the centre of it all.
13th Border District Coordination Meeting between the State Govt of Assam and the Royal Government of Bhutan at Gelephu – Sep, 2024. Photo: X@Indiainbhutan.
The year 2024–25 has seen remarkable developments that redefine the contours of Indo–Bhutan relations. The Hon’ble Prime Minister of India visited Bhutan last year in March, his third visit to the country, and reciprocal visits by Bhutan’s Prime Minister and His Majesty The King of Bhutan demonstrate the direction of this relationship. One of the most significant milestones has been the announcement of an agreement between the two governments to establish two cross-border rail links between Banarhat and Samtse, and Kokrajhar and Gelephu. This should be seen in the context of the inauguration of the Integrated Check Post at Darranga in November last year and the development of the Jogigopha Inland Waterways Transport Terminal, among other ongoing efforts to improve connectivity.
The partnership is also robust in terms of energy, trade, and development. Bhutan’s vast hydropower potential has long symbolised the strength of Indo–Bhutan relations. India’s investment in Bhutanese hydropower projects not only meets part of India’s clean energy needs but also strengthens Bhutan’s economy. In terms of trade, considering Bhutan’s geography, it is no surprise that India is Bhutan’s top trading partner. The India-Bhutan Free Trade Agreement (FTA), signed in 2016 and effective from 2017, establishes a free trade regime between the two countries to boost bilateral trade and provides for duty-free trade of goods and transit rights for Bhutan’s trade with third countries through India. Complementing this is India’s continued support for Bhutan’s 13th Five-Year Plan, reinforcing New Delhi’s role as Thimphu’s trusted development partner.
At the heart of these developments lies the human connection. Border communities in Assam share deep cultural ties with their Bhutanese neighbours. “About 50,000 Indian citizens are working in Bhutan, mainly in the construction sector, education, and technical consultants involved in infrastructure projects,” the MEA cites. “Some Indian daily workers also enter and exit Bhutan every day in the border towns as a sign of the close economic interdependence between both countries.” This was, perhaps, most apparent in the suffering during COVID, when the continued closure of the International Border led to the loss of livelihoods of hundreds.
Chirang is unique due to its location. Lying in the foothills of Bhutan, it shares a long border with Bhutan. Hundreds cross the international border daily from Hatisar to Gelephu and then return – tourists, daily wage workers, VIPs. Hence, Chirang finds mention whenever there are talks of the futuristic Gelephu Mindfulness City, and it is evident that Chirang is warming up for its role. Recently, the stretch of road bordering Bhutan (Bhur Tiniali to Dadgiri) was rehabilitated. Another project is in the pipeline for the upgradation of the entire stretch of the newly declared NH-127C from Shyamthaibari to Dadgiri, the northernmost point of the district. An Integrated Check Post at Hatisar is also being planned, which is expected to boost bilateral ties and facilitate the movement of goods and people.
The Indo–Bhutan relationship today stands as a glowing example of diplomacy guided by friendship and trust rather than transaction. In the backdrop of the current geopolitical scenario, Bhutan’s steadfast trust in India carries immense strategic weight in the neighbourhood. As the engagement increases, India and Bhutan must reap the benefits, and this might be a momentous opportunity in Chirang’s push for development.


