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Beyond Borders, Beyond RealpolitikSTRAP: India and Bhutan’s Model Relationship

Written by Dr. Neeraj A Sharma | Oct 13, 2025 3:16:17 PM

I recently had the opportunity to travel to Bhutan, a country that, despite its small size, looms large in the minds of people who value human well-being, environmental stewardship, and cultural authenticity. Not only was my trip adventurous , but it was also enlightening—a chance to see directly the remarkable fabric of Indo-Bhutanese relations, which is woven from strands of geography, history, and respect for one another.

A sui generis partnership—unique, tried-and-true, and incredibly resilient—is what India and Bhutan have in common. In addition to institutionalizing collaboration in trade, development, and security, the 1949 Treaty of Friendship—which was later amended in 2007—enshrined the ideas of sovereign equality. With more than 80% of its imports and a ready market for its hydropower exports, India continues to be Bhutan's biggest trading partner. In fact, the massive hydropower projects from Tala to Punatsangchhu are a prime example of a symbiotic relationship in which Indian investment drives Bhutan's prosperity and Bhutan's rivers illuminate Indian homes.

However, statistics only provide a portion of the picture. This relationship's obvious human warmth is what takes it above the mundane calculations of geopolitics. One finds a unique balance when strolling through the serene courtyards of Thimphu's monasteries or speaking with Bhutanese people who are open to modernity but proud of their traditions. A reminder that development is meaningless if it does not improve the dignity and contentment of everyday lives; Bhutan's Gross National Happiness index—often written off by cynics as a charming quirk—reveals itself as a profound philosophy.

India has supported Bhutan in this endeavour. India's developmental impact is evident in everything from the building of schools, hospitals, and roads throughout Bhutanese valleys to the provision of scholarships for Bhutanese students attending Indian universities. Bhutan's unwavering support for India on the international scene, from climate talks to the UN, where its advocacy is morally clear, is equally remarkable. It is a relationship strengthened by trust rather than tarnished by suspicion.

For me, there are profound lessons to be gleaned. Like Bhutan, Palau is a small state navigating the crosscurrents of globalization, striving to preserve its environment while embracing development. Both nations, though geographically distant, are united in a shared ethos: that size does not preclude significance, and that ecological wisdom and cultural pride can offer moral leadership to a fractured world.

What struck me most during my sojourn was the effortless coexistence of tradition and modernity. In Paro, ancient dzongs overlook valleys now connected by Indian-built highways; in Thimphu, crimson-robed monks debate Buddhist philosophy even as young entrepreneurs discuss start-ups. This harmony is Bhutan’s genius—and India’s enduring partnership has nurtured, not diminished, this delicate balance.

The friendship between India and Bhutan stands out as a reminder that diplomacy can be infused with warmth, trust, and a shared destiny in an era when international relations are all too frequently reduced to calculating power. My trip served as further confirmation that Bhutan is India's brother in every way, not just a neighbour. And that brotherhood serves as a global model.