India’s relations with its neighbours have infinite points of contact with varying impact. The model of bilateralism attaches due weight to the unique features of each individual relationship in the region. In its relations with Bhutan especially, India has properly utilized the model of bilateralism that has been characterized as beneficial bilateralism. Bilateral bonds between India and Bhutan are strong in almost all fields of development, more so in trade.
Presently, the most important road link between India and Bhutan is the Jaigaon-Phuentsholing border link through North Bengal. More than 90 per cent trade is carried out through here. In contrast, northeastern entry points like Gelephu or Samdrup Jonkher are less convenient for large-scale trade, though this route is more cost-effective. Road connectivity has been developed recently, but is still not up to the mark.
As Nepal, Bhutan, North Bengal and Bangladesh fall within a radius of 80-100 km, this sector has extremely good trade via North Bengal. Other than India, Bhutan sends to Bangladesh fruits, boulders, and agricultural products. Bangladesh sends to Bhutan garments, medicines, batteries, carpets, cutlery and crockery. But Tsering Wangda, the Bhutanese consul-general in Calcutta, contends that “nothing is happening on the northeast front... logistically this route is more economic.” He adds that “truckers are unwilling to take the Assam route due to the militant problem.” He continues, “Even if the facilities are there in the Dewki route, the outcome is absolutely zero, except by air.” Taking the reference of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, he states that although 14 priority areas of cooperation have been identified in Bimstec, “this sub-regional group will have no meaning unless the insurgency problem is solved in the northeast corridor”. According to the consulate, tourism between Bhutan and India is also not picking up through the Assam route because of insurgency.
On the Indian side, there can be no debate that India has immense potential for trade in the markets of Bangladesh, Myanmar and Thailand through its borders along the Northeast. But together with the problem of insurgency, inadequate official border trade procedures are also responsible for unexplored trade in this region.
In the last two decades, India’s Look East policy has enabled the emergence of possible trade links with Myanmar, Bangladesh, Thailand and so on. This has resulted in emphasizing infrastructure development in the northeastern states. These opportunities also include trade link with Bhutan. The eastern part of Bhutan has great potential for producing vegetables and fruits, which have a favourable market in the Northeast as also in Myanmar and Bangladesh. Bhutan also has mineral reserves, mainly in the eastern region, close to its border with Assam. Several hydel-power projects, jointly implemented with India, are situated closer to the northeastern states. Hence, infrastructure development in these parts will enhance the scope of cross border trade through the corridor.
Since the flushing out of militants from Bhutan in 2003, the royal government has been very strict about protecting its 700 km open Indo-Bhutan border. It has also adopted policies to stop public support for the militants, especially from villagers living in the Assam-Bhutan border. Wangda says, “Bhutan is helping these villagers with employment, electricity, and free irrigation services.” But India is yet to take a stable stand in combating insurgency and making the Northeast corridor a viable alternative for trade. India’s objective national interest pertaining to this region is threefold: physical survival, economic well-being and collective self-esteem. The Northeast is indeed an ideal environment which may not wait to justify serious intervention on the part of the authority.
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