Syllabus GS-II & V: India’s Neighbourhood Policy

Why in the news?

The Prime Minister’s visit to Bhutan has renewed national attention on India–Bhutan ties and, importantly, on Assam’s role as a bridge between the two nations. The announcement of a new Immigration Check Post (ICP) at Hatisar to ease movement to Bhutan’s upcoming Gelephu Mindfulness City signals deeper cross-border engagement through Assam.

Assam in the India–Bhutan Relationship

1. Shared Borders and Connectivity

  • Assam plays a central role in India–Bhutan relations because it shares its international border with five districts.
  • This long, peaceful border makes Assam the primary gateway for cross-border movement of goods, people and services.
  • The country’s first Multimodal Logistics Park at Jogighopa is designed to leverage Assam’s riverine networks, enabling smoother trade routes between India, Bhutan and Bangladesh.
  • New transport corridors such as the proposed Gelephu–Kokrajhar rail link will further deepen regional connectivity.
  1. Economic Cooperation
  • India and Bhutan have notified seven new entry/exit points for formal trade, several of which fall in Assam: Pandu Port (Guwahati), Jogighopa Port (Goalpara), Kamardwisa Land Route (Baksa district)
  • These formalised routes are expected to channel a major share of: India–Bhutan trade, and Bhutan–Bangladesh trade transit through Assam.
  • The Bhutan–Bodoland–Bay of Bengal (B3) Corridor, proposed in Assam’s 2025 Budget, envisions transforming the Bodoland Territorial Region (BTR) into a major hub for international commerce, logistics and tourism.
  1. Energy Security
  • Hydropower is the backbone of India–Bhutan cooperation.
  • Bhutan’s hydroelectric projects supply clean renewable electricity to Assam and other northeastern states, strengthening energy security while supporting Bhutan’s economy.
  • Assam plays a crucial role in transmission infrastructure and in facilitating cross-border power distribution.
  1. Cultural Exchange
  • Assam and Bhutan share deep ethnic, linguistic and cultural links, particularly among communities like the Bodos, who live on both sides of the border.
  • Buddhist heritage, shared festivals and cross-border familial ties make people-to-people connections strong and organic.
  • The establishment of the Royal Bhutanese Consulate General in Guwahati has boosted cultural diplomacy, tourism exchanges and academic cooperation.
  1. Security Cooperation
  • Assam’s border areas have historically witnessed occasional cross-border insurgent movements, making security coordination essential.
  • India and Bhutan engage in: Joint border patrols, Coordinated counter-insurgency drives, Intelligence sharing
  • Both sides also work together to address: Illegal immigration, Smuggling of timber and wildlife products, Trans-border crime
  • This cooperation has been vital in maintaining peace, stability and trust along the border.

Key recent developments strengthening Assam’s role

1. New Immigration Check Post at Hatisar

  • Will allow smooth entry of investors, tourists and workers to Bhutan.
  • Supports movement to Gelephu Mindfulness City, Bhutan’s visionary economic zone.
  • Strengthens Assam’s position as a tourism transit corridor.

2. Existing infrastructure push

  • ICP at Darrang operational since 2024.
  • Inland Waterways Terminal and Multimodal Logistics Park in Jogighopa launched in 2025.
    These create seamless land–water connectivity complementing India–Bhutan trade routes.

3. Cross-border rail connectivity

An important milestone was the signing of the MoU for cross-border rail links:

  • Gelephu – Kokrajhar
  • Samtse – Banarhat
    A Project Steering Committee is already overseeing their implementation.

Opportunities for Assam

1. Tourism expansion

A surge of foreign tourists entering Bhutan through Assam opens vast opportunities:Manas National Park, Nameri, Majuli, Kaziranga, Kamakhya Temple.

Tourists become informal cultural ambassadors, enhancing global visibility for Assam.

2. New livelihood and trade possibilities

Cross-border markets, logistics, hospitality, healthcare and education services can flourish.
Border districts can transform from neglected peripheries into vibrant commercial hubs.

3. Border area development

Better connectivity requires improving infrastructure in border villages. Schemes that support this include:

  • Vibrant Villages Programme (VVP-II)
  • Border Area Development Programme (BADP)
    VVP-II aims to saturate border villages with:
  • All-weather roads
  • Telecom & mobile networks
  • Electricity
  • Television and digital access

The programme requires:

  • State support in land availability
  • Forest clearances
  • Skilled manpower
  • Long-term maintenance

Challenges Assam must address

1. Avoid being only a transit corridor

To gain long-term benefit, Assam must create:

  • Industrial nodes
  • Border trade centres
  • Skill hubs
  • Tourism circuits
    Rather than simply providing passage to Bhutan.

2. Ensuring peace and security in border areas

Stable law and order is essential for:

  • Bhutanese investors
  • Cross-border tourism
  • Commercial partnerships

3. Strengthening administrative capacity

The ambitious growth trajectory demands data-driven planning, coordinated action by the Assam government, Bodoland Territorial Council (BTC), central agencies and border districts.

Dimensions of India and Bhutan Relationship

Historical BackgroundThe basic framework of India- Bhutan bilateral relations was the Treaty of Friendship and Cooperation signed in 1949 (revised in Feb 2007).
Diplomatic relationsThe diplomatic relations were established in 1968 with the establishment of a special office of India in Thimphu.
Economic Partnership
  • India-Bhutan Agreement on Trade, Commerce and Transit was signed in 1972 and was revised in 2016
    • It establishes a free trade regime between the two countries.
  • It also provides Bhutan duty free transit of goods to/from third countries.
  • India’s trade with Bhutan accounts for about 80% of Bhutan’s overall trade.
  • India is the leading source of investments in Bhutan, comprising 50% of the country’s total FDI. 
  • RBI has a Currency Swap Agreement with the Royal Monetary Authority (RMA) of Bhutan.
Defence Corporation
  • The Indian Military Training Team (IMTRAT), established in 1961-62, provides training to Bhutanese forces.
  • Both the countries also conduct bilateral military exercise i.e. EX Shakti.
  • Both countries also participated in the multilateral exercise called Shantir Ogroshena (front runner of peace).
Indian Diaspora
  • About 50,000 Indians are presently working in Bhutan in various sectors.

Hydroelectric Power (HEP) corporation

  • The two countries have signed the Agreement on Cooperation in the Field of HEP in 2006 and its Protocol in 2009.
  • Indo-Bhutan hydropower cooperation began in 1961 with the signing of the Jaldhaka agreement. 
  • The Jaldhaka project is situated on the Indian side of Indo-Bhutan border in West Bengal. 
  • Till now India has constructed four Hydroelectric Projects (HEPs) in Bhutan:
  • Chukha HEP
  • Kurichhu HEP
  • Tala HEP 
  • Mangdechhu HEP
  • The 1200 MW Punatsangchhu-I, 1020 MW Punatsangchhu-II  HEPs in Inter-Governmental mode are under various stages of implementation.
 

People to people ties

  • Both countries share strong cultural ties as a result of Buddhism. 
  • India-Bhutan Foundation was established in 2003 with the aim of enhancing people to people exchanges.
  • The Nehru Wangchuck Cultural Centre in Thimphu holds regular classes for Indian classical music, tabla and yoga.

About Bhutan

  • It is a landlocked country of south-central Asia, located on the eastern ridges of the Himalayas.
  • Bhutan’s northern and western boundary with the Tibet Autonomous Region (part of China), generally follows the crest of the Great Himalayas.
  • In the Duars Plain to the south of the Himalayan range lies Bhutan’s boundary with West Bengal and Assam.
    •  Assam shares the longest stretch of 265 km of the total 697-km India-Bhutan international border. 
    •  Assam-Bhutan border falls within all the 5 BTR districts of  Kokrajhar, Chirang, Baksha, Tamulpur and Udalguri.

It borders Arunachal Pradesh to the east and Sikkim to the southwest.

Key Terms Explained

  • Immigration Check Post (ICP): A designated border facility that manages movement of people and goods.
  • Gelephu Mindfulness City: Bhutan’s planned eco-smart city focusing on wellness, culture and sustainable development.
  • Vibrant Villages Programme: Central scheme for infrastructure saturation in border villages.
  • Trans-border rail link: Railway line connecting two countries to enhance trade and mobility.
  • Border Area Development Programme: Long-standing scheme for upgrading infrastructure in the 0–10 km border belt.

Exam Hook – Key Takeaways

  • Assam is emerging as the central gateway for India–Bhutan connectivity.
  • New ICP at Hatisar, existing ICP at Darrang, Jogighopa terminal and future rail links strengthen Assam’s cross-border relevance.
  • Assam must develop economic nodes, not remain a transit state.
  • VVP-II can transform border villages if implemented effectively.
  • India–Bhutan ties offer Assam opportunities in tourism, trade, livelihoods and regional diplomacy.

Mains Question :

“Discuss the strategic and economic significance of Assam in the evolving India–Bhutan partnership. How can Assam leverage new connectivity initiatives to promote regional development?”

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