Modi’s Himalayan Diplomacy

New Delhi: Prime Minister Narendra Modi’s first foreign trip stems from pragmatism of diplomatic outreach to key neighbour and the only genuine friend in the region.

The strategic location of Bhutan – lying between Asia’s two giants, China and India – enhances the significance of Prime Minister Narendra Modi’s first foreign trip to the land-locked Himalayan kingdom. The two-day visit beginning Sunday is seen as a crucial move in improving ties with the neighbour.

It comes even as concerns rise of Bhutan’s inching proximity with Beijing, however India’s Foreign Secretary Sujatha Singh remained diplomatic on the issue saying, “Bhutan is a sovereign country and it is for its leaders to decide on this issue keeping its interests in mind.”

She added that, “Bhutan is one of our most important and strategic partners and is a very good country to show our policy of good neighbourliness in South Asia”.

External Affairs Minister Sushma Swaraj, National Security Advisor Ajit Doval and senior officials will be accompanying the Prime Minister.

Narendra Modi will meet the King of Bhutan Jigme Khesar Namgyel Wangchuck and the Prime Minister of Bhutan Tshering Tobgay, even addressing the joint session of the national assembly and the national council of Bhutan and meeting the leader of the opposition.

Modi, who had invited South Asian leaders to his swearing in on May 26, has sought to convert his landslide election victory last month into a platform to pursue a more assertive foreign policy and promote trade and investment.

India’s assistance package includes Rs. 4500 crore for Bhutan’s 11th Five Year Plan from 2013-18 and covers areas from infrastructure and information and communication Technology to health, agriculture, human resource development and tourism.
     
The country has invested in 16 projects in Bhutan, in areas such as hydropower, cement and IT. A free trade regime is in place between India and Bhutan. “Further measures to boost trade will also be discussed,” Sujatha Singh said.
    
India also assists Bhutan in implementing smaller local projects such as schools, libraries, hostel facilities for students, veterinary hospitals, irrigation channels, drinking water schemes and community centres.
    
“Our hydropower cooperation with Bhutan is a classic example of win-win cooperation,” she said adding “the hydropower projects generate export revenues for Bhutan, cement our economic partnership and provide clean and low-cost electricity to India.”

In April 2014, the two countries signed a framework agreement on four more JV-model HEPs totalling 2120 MW. Of these, the pre-construction activities of the 600 MW Kholongchu HEP as a JV-model HEP between Satluj Jal Vidyut Nigam (SJVN) and Druk Green Power Corporation (DGPC) will commence soon.
     
Bilateral trade amounted to Rs. 6830 crore in 2012 and education, media and tourism sectors hold good potential for enhanced cooperation in future, the Foreign Secretary said.