18 India’s Relations with Bhutan and Maldives
Professor R.S. Yadav
Structure of the Module
1. Introduction
2. Objectives
3. Relations with Bhutan
4. Relations with Maldives
5. Conclusion
6. Important Question
5.1 Short Questions
5.2 Detailed Questions
7. Suggested Reading
a. Books/ Articles
b. Web links
1. Introduction
Neighbourhood relations have always been central to India’s foreign policy calculations. Due to common historical background, cultural similarity, plural social set up and economic conditionalities there has been deep impact of happenings in neighbourhood on India’s foreign policy. However, all neighbours do not have similar impact due to their different geo-political and geo-economic settings. Though impact of big neighbours like China and Pakistan seem to have been immense, yet role of its smaller neighbours also cannot be ignored. Moreover, Bhutan represents the only neighbour with whom India never had hostile relations. Besides, if regionalism in South Asia is to become a reality, role of all the states of the region, including smaller states like Bhutan and Maldives cannot be over looked. Moreover, warm ties with them also ruled out the interventionist role of outside powers in South Asia. Thus, both for regional cooperation and multilateral diplomacy India’s understanding and good will with these smaller states become inevitable.
2. Objectives
In this lesson an effort is made to understand India’s relations with neighbourhood in general and with smaller states in particular. Besides an in depth analysis of bilateral ties with Bhutan and Maldives is made. Moreover, it is examined that how despite asymmetry in terms of demographic, economic, social, geographic and developmental areas India has been successful in building goodwill and cooperation with these smaller states. An effort is also made to examine how through warm ties with them India can prevent the role of outside powers to detract India’s strong hold in South Asia. It is also examined that how India and these stats can play positive role in multilateral diplomacy. Thus, an all round understanding of relations between India and these states since independence is made.
3. Relations with Bhutan
3.1 Historical Perspective
Formal foreign ties between India and Bhutan were established in 1968 when former appointed its representative in Thimphu. Earlier their relations were maintained by a Political Officer in Sikkim. However, basic framework of their relations have been governed by three told historical treaties – 1865 treaty of Sinchula between the then British India and Bhutan; 1910 treaty of Punerva held between both states; and finally 1949 treaty of friendship between independent India and Bhutan. Due to some differences between them India renewed this treaty in 2007 to consolidate their bilateral relations. India – Bhutan relations continue to remain warm and friendly during most of the time. They are even sometimes classified in the category of ideal ties between a regional power and small states. The reason for such strength has been multi-dimensional cooperation existed between the two states. Their cooperation worked very smoothly due to closer understanding evolved between the political elites of both the states. Therefore, political understanding and developmental cooperation between them led to smooth sailing between both the states.
3.2 Political Understanding
Good relations between India and Bhutan developed due to sound political elites of both the states. This understanding is reflected through their mutual regular visits to each other’s country. From Indian side, Jawahar Lal Nehru (1958), Indira Gandhi (1968), V.V. Giri (1974), Rajiv Gandhi (198 and 1988), R. Venkatraman (1988), Manmohan Singh (2008), Pratibha Patil (2008), Narendra Modi (2014) and Pranab Muklherjee (2014) visited Bhutan and signed numerous agreements for cooperation in multiple areas. From Bhutan’s side crown Prince and king also visited nearly one dozen times to New Delhi to reciprocate and cultivate sound relationship. Even king Jigme Khesar Namgyal Wangchuck was Chief Guest for the 64th Republic Day celebrations in 2013. Even Prime Minister Lyonchhen Tshering Tobgay, after being elected, made his first visit to New Delhi in August– September 2013. This bilateral understanding between them was also reflected in each other’s support at multilateral forums. For instance, India supported case of Bhutan’s membership in the UN (1971), NAM (1973) and SAARC (1985). Similarly Bhutan was the only country which stood behind India at the time of signing of CTBT (1996). It opposed CTBT to show its solidarity with India.
3.3 Developmental Cooperation
Bhutan owes its economic development largely supported by India. First two five – year plans of Bhutan were totally supported by India as the latter provided the total sum of Rs. 17.22 crore and Rs. 20 crore respectively for this purpose. During the third plan also India’s contribution was very huge in terms of Rs. 33 crore and it has reached to Rs. 3000 million and Rs. 7500 million toward sixth and seventh plan respectively. This assistance continued even today then India’s share of contribution to its Ninth Plan (2002-08) reached to Rs. 2610 crore, tenth plan (2008-13) reached to Rs. 3400 crore and for eleventh plan (2013-18) reached to Rs. 4500 crore. Thus throughout its period India’s contribution to Bhutan’s development has been tremendous, Besides its financial liabilities are increasing from one plan to another despite the fact now Bhutan is also getting assistance from numerous multilateral forums like UN, World Bank, Asian Development Bank etc.
Collaboration in the generation of electricity through hydropower project has been another area of cooperation between India and Bhutan. Major hydroelectric projects completed through Indian assistance are: 1020 MW Tala Hydroelectric Project; 336 MW Chukha Hydroelectric Project; 60MW Kurichhu Hydroelectric Project etc. Besides both agreed to develop 10 such projects in 2009 out of which-three projects (Punatsang- Chhu– I & II and Mangedchhu) are under construction; four projects(Kholongchhu, Amochhu, Wangchhu and Bunakha) are submitted DPRs for approval; and three projects (Kuri Gungri, Chankharchhu – I and Sankosh) DPRs of which were finalized in 2012. Besides, Govt Of India also agreed to purchase 10,000 MW of power from Bhutan by 2020. Thus, India is not only helping Bhutan in the production of hydro electricity but also ready to purchase the same.
India is also instrumental in building of different major infrastructural facilities in Bhutan. India assisted Bhutan in the building of Penden cement plant, airport, Bhutan Broadcasting station, and electricity transmission and distribution system. Indo-Bhutan Microwave link, exploring mineral resources, survey and mapping, supreme Court building, 350 bedded JDWNR hospital in Thimphu, Regional referral hospital in Mongar, double laning of Thimphu- Pluentsholing road, double laning Paro-Chuzom road, 10 schools, 306 low-income houses, renovationof sentokha Dzorg, two youth centers, RENEW centers, establishment of e-library in National Library of Bhutan, establishment of one such libraries in each 20 district of Bhutan etc. Thus, whatsoever major facilities are noticed in Bhutan, they are developed with financial and technological assistance from India.
Development of rail routes form Bhutan to the border of India is also done by the latter. Since 2005 India is engaged in the building of railway tracks in Bhutan. The neighboring states of Assam and West Bengal of India are being linked through these railway networks between India and Bhutan. India is engaged in the development of five major railway tracks in this region. These tracks are : (i) 18 K.M. railway line form Ishimara (West Bangal) to Fulsolin ; (ii) 70 K.M. line from Kokrajhar( Assam) to Galefu; (iii) 40 k.m. line form Pathshala (Assam) to Nanglam; (iv) 40 K.M. railway line from Rangla (Assam) to via Daranga to Samdurjung ; and (v) 16 K.M. long line from Banashat (West Bangal ) to Samtse. During his visit to Bhutan in 2008 Manmohan announced another “Golden Jubilee Rail Line” linking Harimara to Phuentsholing. Thus, India is engaged in the overall development of this region and their smooth connectivity with India.
3.4 Economic Collaborations
India and Bhutan are also enhancing their economic collaborations through trade and assistance. As far as trade is concerned India imports following commodities and services from Bhutan: electricity, base metals, minerals, vegetables, oils, alcoholic beverages, chemicals, cement, timber, wooden products, cardamom , fruit products, potatoes, oranges, apples, raw silk, plastic, rubber products etc. Whereas India exports mainly following items to Bhutan: petroleum products, mineral products, base metals and articles, machinery, automobiles and spares, vegetables, nuts, spices, processed foods, animal products, chemicals, wood, plastic, rubber etc. For the promotion of market of Bhutan India provides it free passage to transit in third country. India has identified sixteen entry/exit points for Bhutan to facilitate transit to third country.
Though in terms of figures trade quantum is not much between India and Bhutan, yet it has been on constant increase. If India’s exports from Bhutan was Rs. 698 Core in 2001, then it reached to Rs. 2930 crore in 2010. Similarly if India’s imports to Bhutan were Rs. 470 crore in 2001, then it rose to Rs. 2600 crore in 2010. Beside it forms significant percentage in Bhutan’s trade to the outside world. If imports from India have been 75% of Bhutan’s total imports, then its export was nearly 90% of Bhutan’s export to outside world. Thus, Bhutan is to a great extent dependent on its trade with India. Simultaneously, its landlocked status makes it inviolable for Bhutan to have trade and transit facility through India. Moreover, India has not only provided ample opportunities to Bhutan in terms of trade and transit facilities, but since 2009 it has also extended a standby credit facility of Rs. 300 crores to help Bhutan to overcome its rupee liquidity crunch.
3.5 Educational and Cultural Linkages
To develop cultural and people – to – people contact lots of educational facilities are extended to students of Bhutan in India. Among important concessions extended for this purpose include:
a) 85 students for undergraduate and 77 students for post-graduate levels every year are granted facilities to
study in Indian Universities/institutions.
b) Under Colombo plan 80 persons are given training every year by ITEC/TCS.
c) 10 students from Bhutan are admitted in Sainik schools in India.
d) Nehru-Wangchuk scholarship worth Rs. 2 crores are given to Bhutan students every year.
e) Ambassador’s scholarship worth Rs. 2 crores are given to Bhutan student every year.
f) Nearly 30 teachers from India are posted in college in Bhutan to teach students.
g) Besides, number of private students is studying in different schools and colleges in India.
To facilitate closer cultural ties India has established its cultural centre in 2010. Besides, India – Bhutan Foundation (IBF) has been established in 2003 to promote people – to – people understanding and contacts. This forum provides platform to literary persons, cultural promoters and educationalists of both countries to exhibit and transfer cultural values of their respective people. Various seminars, conferences and concerts are being organized under the banner of IBF. This process is further strengthened through 37000 people of India origin are living as residents/workers in Bhutan. Besides, nearly 7000 daily wages are also staying in Bhutan.
4. Relations with Maldives
India and Maldives had friendly and warm relations since 1965 when the latter got independence from British rule. However, India established its mission at Mole in 1972. Since both are proximate neighbours and Indian Ocean provides a sound linkage between the two. If Maldives is strategically important for India, then latter is pertinent for former in terms of economic and developmental concerns. Though both had close economic, social, polling, strategic and cultural relations, yet their bilateral relations can be understood by evaluating broad interactions between them in terms of their multi-fold relations.
4.1Political Understanding
India’s political relations with Maldives are based on its foreign policy with outside world in general and its attitudes towards neighbours in particular. India is attracted towards Maldives for creating peace, stability and security in this region. Geographically, Maldives so closer to India that whatever happens may have spill over impact in latter. Besides, happenings in Male have serious bilateral, sub-regional and regional security implications for New Delhi. Even the happenings in Maldives and Sri Lanka not only affect their bilateral relations but also affects situation in India. Even at multilateral levels successes of SAARC and IOR-ARC is also dependent upon India’s goodwill toward all the states of South Asia, including Maldives. Even the success of new regional cooperation, in the post-cold war era, is also dependent upon India’s cooperation with all its neighbours.
Similarly India figures very prominently in the foreign policy orientations of Maldives. India is not only proximate but a regional power which can help Maldives through numerous ways. It not only guarantees its security needs from neighbours but also from outside powers. India can also prevent any kind of Sri Lanka intervention in Maldives. Besides, bilateral concerns Maldives’s sub-regional and regional problems can also be resolved through the help of India.
These mutual compulsions of the two are reflected in past when India helped Maldives during its crises situations. When in 1988 Peoples Liberations Organization of Tamil Eelam (PLOTE) tried to over through the regime of President Gayoom, it was India who help Maldives to save from the coup. In that incident-PLOTE has been successful to take control of Male airport and national capital. Then on the request of President, India launched “Operation Cactus” and squashed the coup attempt and achieved full control of the country within hours. India’s action was not only appreciated by powers like USA, USSR and UK, but also praised by neighbours like Nepal and Bangladesh. President Gayoom also thanked India for the timely support and assured warm ties in future.
Similarly during the time of natural catastrophe of tsunami in 2004, India was very prompt to extend generous help to Maldives. It helped Maldives with all kind of commodity and financial support to deal with that crisis. Even it helped it to repair the damaged infrastructure in that country.
During the drinking water crisis of 2014, when island’s water treatment plant failed, India helps Maldives in such a swift manner that it was highly appreciated by all strata of society in Maldives. During this crisis India took twin steps to help Maldives. On the one hand, it sends its heavy lift transporter plane C – 17 Globemaster III and IL – 76 to carry huge load of mineral water bottles to Maldives. On the other hand, Indian navy send its ships like INS Sukanya and INS Deepak which can produce fresh water using their on board de –salination plants. Thus, the drinking water crisis was resolve through Indian help in a very smooth manner.
The strengthening of their political ties is also reflected through the bilateral visits of leaders of both the countries from time to time. From Indian side, since the establishment of diplomatic relations almost all the Prime Ministers of India had paid their visit to that country. Similarly from Maldives’s side Presidents Gayoom, Nasheed and Yamern visited India during their regimes. Besides, numerous ministers from both sides paid their visits at each others’ capitals to strengthen friendly relations through signing of agreements of bilateral cooperation in different areas. Besides bilateral cooperation both support each other at multilateral levels as well. This is reflected through their working in the forums like SAARC, NAM, 10R-ARC, UN and Commonwealth etc.
4.2 Economic Cooperation
As far as economic cooperation is concerned, it is mostly India who has provided extensive help for the development of facilities in Maldives. India extended generous aid to Maldives for the development of infrastructures in that country. India was instrumental in building the Indira Gandhi Memorial Hospital (IGMP), faculty for Engineering Technology (FET) and Faculty of Hospitality and Tourism Studies (FHTS) in Maldives. Through various academic collaborations India is developing skills and educating students of Maldives. Important scholarship schemes are sponsored by India to educate students of Maldives. Some of them are: ICCR Scholarship, SAARC Chair Fellowship, ITEC Training and Scholarship, Technical Cooperation Scheme of Colombo Plan and Medical scholarship. Even India’s Foreign Service Institute is providing training to Maldives’s diplomats under Professional Course for Foreign Diplomats (PCFD) scheme. India’s private companies like NIIT and EEEC is running extensive computer training programmes for students of Maldives. From year 2011 to 2013, for approximately 27 months, India has been able to train nearly 3000 students of Maldives. For the successful running of these schemes India is also financing Maldives under technology adoption programme in education.
Besides capacity building scheme, India is also very liberal in extending grants and aids to Maldives. For instance, India gave huge financial assistance to Maldives to the time of Rs. 100 million in July 2007 and also agreed on a standby credit facility of US $ 100 million in terms of loans and revolving credit for trade. Similarly during Tsunami it extended help of Rs. 10 crore to repair the damaged infrastructural facilities in Maldives. Moreover, under new line of credit US $ 40 million was offered by Govt. of India. Even India’s Overseas Infrastructure Alliance (OIA) is planning to construct 485 houses in Maldives.
In terms of trade, as well, both have made tremendous progress. India’s major exports to Maldives are : agricultural and poultry products, fruits, vegetables, sugar, rice, wheat, flour, spices, drugs, textiles, medicines, industrial and engineering good, petroleum product, sand and aggregate, cement etc. Whereas Indian imports from Maldives are: fish, scrap metal etc. Thus their trade which started with modest beginning has reached to the time of Rs. 700 crores. But trade situation between the two is not appropriate. It is because this has always been negatively in favor of Maldives. Even possibilities of diversification of trade also seem negligible. As trade figure of 2012-13 reveals that India exported item worth nearly Rs. 666 crore and in return it imported items worth 40 crores in response. So it cannot prolong for times to come. Therefore, India needs to permit more concessional trade to this island state.
Besides government certain organisations and private sector are also engaged in economic activities in Maldives. Since 1974 State Bank of India is engaged in providing loans and assistance towards the promotion of marine products, development of islands for resorts and other business enterprises in that country. Even Taj Group of India is associated with the development of tourism in the state. It is running two resorts – Taj Exotica Resort and Spa and Vivanta Coral Reef Resort – to provide good tourist destinations outsider’s attraction. Besides, Indian companies are also involved in the development of housing and industrial ventures in the state. Tata housing Development Co. Ltd is busy in the 1000 Low – cost housing construction scheme in Male. Similarly Tatva Global Renewable Energy is engaged in the waste management in Mole area with its US $ 49 million project. Besides, Daewoo Innovative Parking Solutions (India) Ltd is creating multi-story commercial and parking space in Mole. Thus, both Governments as well as, private sector in India is helping in infrastructure build up in Maldives through numerous projects and assistance.
4.3 Security Concerns
Common security concerns among them are also another important area of cooperation. Both the countries can contribute to the peace and stability in South Asia. Besides in contemporary times problem of terrorism has acquired global dimension for which cooperation and support both at regional and global levels are inevitable. In that context activity in South Asia demands cooperation between the two states. Moreover with the growing importance of economic factors in international politics maritime security concerns in the Indian Oceans is another area where both can cooperate with each other.
Beside above common concerns both can help each other towards their bilateral security problem. If on the one hand, India can take care of Maldives security threats from the terrorist groups from Sri Lanka, then on the other hand, Maldives can help India by not promoting anti-India activities of China or any other outside powers in the Indian Ocean region. Both states are serious in implementing such cooperation. This is reflected by efforts towards the evolution of trilateral framework of cooperation in the form of India – Sri Lanka – Maldives dialogue. Both also agreed to “strengthen cooperation to enhance maritime safety and security in the Indian Ocean region through joint patrolling and aerial and maritime surveillance, exchange of information, capacity building and the development of an effective legal framework against piracy”. Besides, India is also providing training and capacity building of National Police and Defence forces of Maldives. In this context, India gifted a Trinkat class fast attack craft to Maldives and installed radars on all 26 atolls for seamless coverage of approaching vessels and aircraft. Even India’s Southern Naval Command has included Maldives in its security grid. Moreover, Maldives military team was allowed to visit India’s tri-services Andaman Nicobar Command center to learn the security and surveillance management of the critical island chain. Indian Coast Guard is also helping Maldives to manage its security concerns. Thus, both states at their bilateral, sub–regional and regional levels are developing convergence regarding security challenges faced by them.
4.4 Cultural Ties
Both countries are engaged in promoting cultural ties between the two through institutional arrangement and enhanced people – to – people contacts. As far as institutional set up is concerned, India has established its cultural centre in Male in July 2011 to promote music, yoga, and classical dance etc between cultures of two states. India also did the restoration work of three historically important mosques in Maldives. Indian films and TV programmes are also creating cultural affinity between the people of two states. For enhancing people to people contact daily flights are operated by Air India. As a result large number of Indians is choosing Maldives as their tourist destination. Even people in Maldives are frequently visiting India for pursuing higher education, medical treatment and of course as tourists. As a result, Indian is the second largest expatriate community with an approximate strength of 26,000. A large number of doctors, nurse, accountants, engineers and teachers working in Maldives are Indian. Thus, cultural linkages between the two are strengthening their long term relationship.
4.5 Problems and Prospects
The relations between the two states were also not without differences. Though both countries have already demarcated their maritime boundary in an amicable manner in 1976, yet a mirror diplomatic problem aroused on this issue in 1982. It was because President Gayoom’s brother declared Indian island Minicoy as part of the territory of Maldives. But before India could have reacted on the situation, Maldives realized it mistake and admitted that Minicoy island is part of Indian territory. Hence, nothing serious happened. Another crisis arose in their relation in 2012-13 due to cancellation of GMR’s airport construction, the largest single Indian investment, by the Maldives. India reacted to this decision in a harsh manner. It freezes its US $ 25 million aid to Maldives. It also stopped the construction of police academy there and other infrastructural commitments were put off by India. Besides, India is also not happy with some anti-India sentiments of some coalitional partners of Waheed’s government. India was also not happy with growing Chinese presence in Maldives But now with the coming of Yameen’s to power in Nov. 2013 and his decision to visit India first from 1-4 January 2014 have resolved such misunderstanding between the two states.
Given the proximate location and mutual Interest of both the states it is likely that both may be interested to establish peace and tranquility in South Asia. Besides, both may like to do away with threat of terrorism form their respective territories. Both may also be interested to have a safe and secure maritime communication. Even on issues of role of outside powers both are against any kind of such interference. More than this, Maldives is to great extend dependent on India for its economic and infrastructural development. Therefore, they are bound to have warm and cordial bilateral ties in future as well.
5. Conclusion
Above situations reveals that Bhutan and Maldives represent special category of neighbours with whom India has generous relationship. They form part of ‘Gujral doctrine’ where unilateral concessions are granted to them. They are also economically dependent on India’s aid and assistance toward their development. India has also been consistent in granting them huge aid and building almost all kind of infrastructure developed in those regimes. Broadly they also form part of security framework of India. They are the only neighbours of South Asia with whom India never had serious issues of contention. Sometimes minor misperceptions have aroused but that too never take the shape of conflict or crisis. Thus, with both neighbours India enjoyed warm relations both at bilateral and in multilateral forums. Not only at Govt. – to – Govt. Levels, but also at people – to – people levels India enjoyed complete goodwill and warmth with these states. Therefore, they represent an ideal case of regional power – smaller state relationship.
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Suggested Readings
a) Books/ Articles
- Manorama Kohli, From Dependency to Interdependence: A Study of Indo-Bhutan Relations, New Delhi, 1993
- Ravi Verma, India’s Role in the Emergence of Contemporary Bhutan, New Delhi,1988.
- V.M. Jain, “India and Bhutan: Security and strategic Dimension” Strategic Analysis, 8(6), Sept.1995.
- Padmja Masty, “Indo-Bhutan Relations Serving Mutual Interest”, Strategic Analysis,23(1) April 1999
- N Sathiya Moorthy, “India and Maldives: Towards Consolidation”, IPCS Issue Brief, No. 145, March 2010.
- M. Samatha, “India-Maldives Development Cooperation: Opportunities and Challenges”, ICWA Policy Brief, 27 October 2014.
- Arvind Gupta, “India and Maldives: Ties must be Consolidated”, IDSA PolicyBrief, 13 January 2014.
b) Web Links:
1. http://mea.gov.in/Portal/ForeignRelation/Bhutan-February-2012.pdf
2. http://www.indianembassythimphu.bt/pages.php?id=83
3. http://www.idsa.in/taxonomy/term/877.html
4. http://thediplomat.com/tag/india-bhutan-relations/
5. http://164.100.47.134/intranet/India-Bhutan%20Relations.pdf
6. http://mea.gov.in/Portal/ForeignRelation/Maldives_May_2014_.pdf
7. http://thediplomat.com/tag/india-maldives-relations/
8. http://www.idsa.in/policybrief/IndiaandMaldives_agupta_130113.html