It is not a coincidence that the first head of state to address a joint session of Bhutan’s recently elected parliament is the Indian Prime Minister Manmohan Singh. Relations between India and Bhutan have traditionally been warm.  India has played a key role in Bhutan’s economic development and supported its transition to a democracy. It is in recognition of this that the Bhutanese government chose India for the honour. During his visit to Thimphu, the Prime Minister promised Bhutan Rs 100 billion over the next five years as part of an economic development package, dedicated the 1,020-MW Tala hydroelectric power project that was built entirely with Indian assistance and laid the foundation for the Punatsangchhu hydel project. A formal announcement regarding the 30 km rail link between the border towns of Hashimara in West Bengal and Phuentsholing in Bhutan was made. It is clear that India intends being engaged in a major way in Bhutan’s economic development in the long term.

Relations between India and Bhutan have been friendly because the two countries have been sensitive to each other’s concerns. Last year, India revised the 1949 India-Bhutan treaty, which was really a relic of colonial times. Clauses regarding Bhutan’s foreign and defence policies that required it to consult India, undermining its sovereign status, were revised through consultation. Although India is a giant compared to Bhutan, it has sought to avoid trampling on the latter’s sensitivities. Similarly, Bhutan has been sensitive to India’s security concerns. In 2003, Bhutan, on India’s request, carried out military operations against training camps on its soil run by anti-India insurgent groups like the United Liberation Front of Assam (ULFA).

In the coming years, it is likely that India will find democratic Bhutan interested in increasing its options by engaging other countries in the region. India will find itself up against formidable competitors. It must prepare itself for the battle ahead. China’s road and rail building activity across the Himalayan region is advancing at an amazing pace and it is a matter of time before its trains reach the Bhutan border carrying goods for trade. India has been talking about building rail links with Bhutan for several years now but the rail is yet to become a reality. If India is keen to retain its influence in Bhutan it must deliver on its promises and implement projects energetically. It is a matter of time before Bhutan looks beyond India to meet its needs and Delhi should prepare itself for that scenario.