Mint Explainer: Bhutan's new India-linked SAR and implications for South Asia
In a move that could reshape its economic landscape, Bhutan has announced the establishment of a new Special Administrative Region (SAR) in Gelephu, strategically located along its border with India. The announcement, made by King Jigme Khesar Namgyel Wangchuk during his National Day speech on 17 December, signals Bhutan's intent to revitalize its economy by leveraging its geographical position to bridge South and Southeast Asian markets. Mint explores what this means for Bhutan and the wider South Asian region, with a special focus on India's role in this ambitious endeavour.
In his address, the Bhutanese monarch revealed plans for developing a 1000 sq km area into "Gelephu Mindfulness City." This proposed economic hub, adjacent to India's Assam, aims to attract foreign investment. Additionally, in a change for the traditionally reclusive country, the King has announced plans for Gelephu to serve as a vital link in a larger economic corridor connecting South and Southeast Asia. He emphasized the strategic location of Gelephu, projecting it as a gateway that could yield substantial benefits from improved connectivity and collaboration.
India's role in Bhutan's ambitious economic project is crucial. The success of the Gelephu SAR largely depends on enhanced connectivity, and India's commitment to improving infrastructure links is key. The King in his speech said, “I am also pleased to share that during my recent visit to India, the Government of India expressed their full commitment to improve and expand the major roads leading to Bhutan.
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