Context: Subnational diplomacy has increasingly become a vital aspect of India’s engagement with its neighbours, particularly in regions sharing borders with other countries.
Relevance of the Topic: Mains: India and its Neighbourhood: India-Bhutan relations.
About Subnational diplomacy
- Subnational diplomacy or Para diplomacy is the diplomacy conducted by sub-state governments. It introduces the idea of decentralisation of political power to make regional governments prominent actors in the international sphere.
- While foreign affairs remain under the purview of the Central government, States like Assam have demonstrated the potential of regional governments to influence cross-border relations and deepen economic and cultural ties.
India-Bhutan Relationship and Assam’s significance
- Historical and diplomatic Ties: India and Bhutan share a special relationship, characterised by mutual trust, friendship, and economic cooperation.
- The relationship is shaped by geopolitical factors, including Bhutan’s strategic location between India and China.
- Prime Minister Narendra Modi’s visit to Paro in 2024 reinforced India’s commitment to strengthening bilateral ties, amidst reports of Bhutan’s growing engagement with China.
- India-Bhutan Trade Agreement: India-Bhutan Agreement on Trade, Commerce, and Transit was first signed in 1972 and last revised in 2016.
- The agreement establishes a free trade regime and provides duty-free transit for Bhutanese exports to third countries.
- Economic Ties:
- Trade Statistics (2022-23): India is Bhutan’s top trade partner, accounting for 73% of Bhutan’s total trade.
- Bilateral trade volume: ₹11,178 crore.
- India’s exports to Bhutan: ₹8,509 crore.
- Assam’s contributions: Major exports include bricks, LPG, rice, and motor spirit.
- Potential Trade Expansion:
- Assam’s rich natural resources (tea, oil, Joha rice, Bhut Jolokia) offer further opportunities for exports to Bhutan.
- New Integrated Check Posts (ICPs) (E.g., Darrange) and alternative trade routes can diversify trade beyond the Jaigaon Land Customs Station (LCS) in West Bengal, which currently handles 70% of India-Bhutan trade.
- Connectivity and Infrastructure Development:
- Assam-Bhutan border length: The Assam-Bhutan border length is 267 km.
- Upcoming projects to boost connectivity:
- Kokrajhar-Gelephu Railway Project (57.5 km): Expected to be completed by 2026.
- Banarhat (India)-Samtse (Bhutan) Railway Link.
- Dhubri River Port (Assam): It could facilitate Bhutan’s trade with Bangladesh, reducing cost and transit time.
- Asom Mala initiative: Assam’s infrastructure development program aimed at improving roads and transportation links to the remote districts.
- Energy Cooperation: Hydropower is Bhutan’s economic backbone (accounts for 63% of GDP).
- There is a complementarity as Assam faces high power demand (2,879 MW in September 2024).
- Existing Power Purchase Agreements (PPA), such as with the Nikachhu Hydroelectric Project, can be expanded to meet Assam’s energy needs.
- Tourism and Cultural Collaboration:
- Potential for joint tourism initiatives, such as a unified tourism circuit connecting attractions in Assam and Bhutan.
- Promoting eco-tourism and cultural tourism can enhance centuries old people-to-people ties.
- Ecological and Environmental Cooperation:
- Joint conservation efforts between Manas National Park (Assam) and Royal Manas National Park (Bhutan) for wildlife and biodiversity protection.
- Collaboration in sustainable resource management and cross-border environmental initiatives.
Bhutan is at a critical juncture, balancing its economic aspirations and territorial disputes with China. India’s continued diplomatic, economic, and infrastructural support is vital for maintaining strong ties. Assam’s active role in subnational diplomacy can act as a model on how Indian states can contribute to foreign policy initiatives.