Bhutan’s relations with India are historic and over the years have continued to widen and deepen. Ever since Nehru’s visit, India has played a major role in Bhutan’s economic development and continues to do so. From Bhutan’s first five year plan onwards, Indian assistance has been mainly in the infrastructure sectors such as roads, health, education, industries and power and in a number of major projects such as the impressive international airport at Paro. As Bhutan gradually emerged from its self-imposed isolation to modernization, so did its political institution evolve simultaneously without disturbing overmuch their traditional culture and civilization, especially with visionary resolution of the fourth King Jigme Singye Wangchuk, the true architect of present day Bhutan.
The geographical configuration of Bhutan has made it what may be termed as “mini yam between two rocks”. This description implies that Bhutan is strategically placed between two powerful neighbours, China and India. This book mainly deals with the important aspects of bilateral relations between India and Bhutan. It takes a brief notice of its early history and focuses on different stages of political relations with India to the present, and makes a comparative study of its political status and commercial relations between the two countries through the trade treaties. The hydel power projects are best examples of benefits which can flow from agreements through diplomacy to both countries.