India and Bhutan: Status of Special Relationship in XXI Century

The article is dedicated to the research of foreign policy of the Kingdom of Bhutan, as well as its “special rela-tions” with India in the 21st century. The revised Friendship Treaty of 2007 abrogated the provision, originally instituted under British colonial rule, which subordinated Thimphu’s foreign policy to India. Against this back-drop, the aim of the article is to examine the subsequent transformations that followed this development and to ascertain whether Bhutan’s dependence on India has diminished. New Delhi supports Bhutan’s cautious de-mocratization process, notably providing assistance in the establishment of the Election Commission. India remains Bhutan’s main contributor to economic development as well as a major trading partner. The kingdom’s two main economic sectors – hydropower and tourism – also depend on cross-border co-operation. Bilateral relations are further shaped by the external factor of China’s regional influence. The border issue between Bhutan and China remains unresolved. However, despite the conflict in Doklam, in the early 2020s, Thimphu and Beijing made progress in this process, which was perceived quite positively by experts. Nonetheless, New Delhi remains a significant third force that can exert key influence on the settlement process.