Bhutan may ease dependence on India

Subject

Bhutan's political and economic outlook.

Significance

Bhutan is approaching its third general election since replacing an absolutist monarchy with a constitutional one a decade ago. The last poll in 2013 was fought over the status of Bhutan's relationship with India, upon which it still depends, and China, with which it is exploring closer ties. Last June-August, Bhutan found itself at the centre of a military confrontation between its two giant neighbours.

Impacts

• Modi's trip to Bhutan may prompt a similar visit by Chinese President Xi Jinping.
• Another India-China border standoff would again raise tensions but would be unlikely to lead to open conflict.
• China will step up efforts to encourage active Indian participation in the BRI.