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International RelationsPrelims: MediumMains: HighInterview: High12 min readUpdated 2026-05-25

India & Bhutan

India & Bhutan · Doklam · hydropower

Story hook

It is 22 March 2024. Prime Minister Narendra Modi is in Thimphu, Bhutan — his second prime-ministerial visit. He addresses the National Assembly in Tashichho Dzong — the only foreign leader ever to do so. Modi announces ₹10,000 crore ($1.2 billion) in development assistance over the next 5 years — Bhutan's largest single grant package ever. The next day, Modi inaugurates the Gelephu Mindfulness City master plan with King Jigme Khesar Namgyel Wangchuck and PM Tshering Tobgay. Gelephu Mindfulness City — a new 1,000 sq km Special Administrative Region modelled on Singapore-meets-Bhutan-meets-Bodh Gaya — is Bhutan's most ambitious development project ever. It will rely heavily on Indian transit, finance and visitors.

Eight years earlier — 16 June - 28 August 2017 — the Doklam plateau at the India-China-Bhutan tri-junction became the focus of a 73-day military standoff. Chinese PLA engineers attempted to build a road in Doklam — claimed by Bhutan, contested by China. Indian troops moved into Bhutanese territory to block — under the 1949 (revised 2007) India-Bhutan Friendship Treaty obligation. The Siliguri Corridor (Chicken's Neck, ~22 km wide at narrowest) connecting India's North-East to mainland was at strategic risk. After 73 tense days, both sides withdrew.

India-Bhutan is a special relationship unmatched in Asia. No border disputes. No visa requirements for travel (technically permits). Indian currency widely accepted. Indian Military Training Team (IMTRAT) trains Royal Bhutan Army since 1962. Indian Army's Project Dantak (Border Roads Organisation, since 1961) builds Bhutan's road network. Hydropower partnership generates almost all Bhutan's foreign exchange. This is what scholars call "Special and unique relationship" in foreign-policy parlance.

Why this matters for UPSC

Bhutan is strategically critical to India for two reasons:

  • Tri-junction at Doklam + Siliguri Corridor security.
  • Watershed of Brahmaputra tributaries (Manas, Sankosh, Wang Chhu).

It is also a diplomatic success story — the rare South Asian neighbour where India has maintained primacy without becoming overbearing. For UPSC:

  • Prelims: 1949 Treaty, 2007 revision, Doklam, hydropower projects (Tala, Chukha, Kurichhu, Mangdechhu, Punatsangchhu), Gross National Happiness, BBIN.
  • Mains GS-II: Special relationship model; hydropower cooperation; Doklam strategic context; China rapprochement concerns.
  • Interview: "Why is Bhutan-India different?", "Should Bhutan establish diplomatic ties with China?", "Has the hydropower model worked?".

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