However, India is the largest source of investment and infrastructure in Bhutan – Thimphu’s Ngaltrum currency is pegged to New Delhi’s rupee – and promoting bilateral ties is important. “Any government that comes to power will try to strengthen ties,” Haider said.
According to the World Bank, Bhutan has strong economic and strategic ties with India, “particularly as its major trading partner, source of foreign aid, and financier and buyer of surplus hydropower”. About 70 percent of Bhutan’s imports come from India.
In December, Bhutan’s King Jigme Khesar Namgyel Wangchuck announced a special economic zone on its border with India. The two men hoping to become Bhutan’s new prime minister talk enthusiastically about boosting ties with New Delhi to lift Bhutan’s US$3 billion economy.
India has already announced several connectivity projects for Bhutan, including a railway line, but a lot will depend on Indian investors. “Bhutan will seek investment from other countries,” Haider said. He said it would be “significant” if Thimphu welcomed money from China.