India-Bhutan: Reiterating old ties in a new context

Prime Minister (PM) Narendra Modi was on a two-day visit to Bhutan last week.

- Harsh V Pant is vice-president for studies, and Aditya Gowdara Shivamurthy is associate fellow, Neighbourhood Studies, ORF.

The visit underscored India’s commitment towards Bhutan amid the changing security environment in the region. The visit was intended to address the new dynamics of a changing Bhutan, while also underscoring India’s gratitude and willingness to engage with the popular and beloved monarchy of the country.

Bhutan today is at a crossroads. Decades of unaddressed economic and social problems and little economic diversification have contributed to youth unemployment (17.8%). In recent years, over 9% of its population has migrated elsewhere, hollowing out the country’s working population and bureaucracy. By 2027, the country will also transition into an ageing society. China has continued intrusions into Bhutanese territories, pressuring the country to demarcate borders and enhance diplomatic relations.

To cope with these challenges, Bhutan is redefining itself under the leadership of its fifth king, Jigme Khesar Namgyel Wangchuck. It is investing significantly in technology to improve its economy, governance, and efficiency. The State has introduced Gyalsung—a policy of mandatory national service for Bhutanese attaining 18 years of age— to promote a new form of civic nationalism. This is also being supplemented by the flagship project of Gelephu Mindfulness City (GMC), a special administrative region bordering Assam, intended to draw investments, promote innovation, and economic growth.