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Bhutans Prime MinisterL T Tobgay

(left) paid a visit to his Indian

counterpart Manmohan Singh after

w inning elections

Bhutans experiments with happiness,India is one of the secrets behind Bhutans happiness

Bhutan is marching forward, saying happiness is much more important than economic growth. When global recession

sent growth plunging in many countries, Bhutan witnessed a GDP growth rate of 8.2 per cent, according to an

estimate by the Asian Development Bank in 2012. Back in the 1980s, Bhutan was much poorer than India. Today,

Bhutanese are richer than Indians: In 2012, its per capita GDP was $2,986 against Indias nearly $1,500.

India is a major factor behind the countrys growth and happiness. A lot of this GDP growth was spurred by gianthydropower projects that India has been building in Bhutan for four decades. India also advises it on its foreign and

defence policies. Indias grants fund Bhutans Five Year Plans; it supported 74 per cent of the 10th Plan and 20 per

cent for the 11th Plan.

The Border Roads Organisations Project Dantak builds and maintains most roads in Bhutan. In 1961 it built the first

all-weather road in the country between Phunseling near the Indian border and Thimphu. India also provides

petrol and cooking gas to Bhutan at the same subsidised rates at which it provides to its own population.

Bhutan is so dependent on India that the withdrawal of subsidies on petrol and cooking gas between the two rounds

of polling this year spurred whispered allegations of interference. The withdrawal switched the fortunes of the

Peoples Democratic Party (PDP), which was in the opposition since the kingdom became a constitutional monarchy.

In the primary round of polls in May, PDP trailed the ruling Druk Phuensum Party but came out on top in the second

round of polls in July. PDPs leader, now the prime minister, Lyonchhen Tshering Tobgay, is seen as being pro-India.

The Bhutanese see the withdrawal of subsidy as a crude attempt by India to influence the elections. They are

unambiguous that India did this to teach Bhutan a lesson.

India felt its former prime minister Jigme Thinley was cozying up to China, Bhutans other giant neighbour. In 2012,

Thinley met that countrys prime minister Wen Jiabao in Rio de Janeiro. Under Thinleys leadership, Bhutan was also

planning to open diplomatic relations with China. Bhutanese say this is realpolitik; they have to strike a balance intheir relations with their two giant neighbours. They hold regular talks with China to settle the demarcation of the

international border. But Bhutans expansion of international reach irked India, which has so far handled Bhutans foreign policy.

In August, after India refused to shell out Rs 550 crore as the remainder of its commitment for Bhutans 10th Five Year Plan, Bhutanese look at India as

a cantankerous parent. To improve the souring relation, Bhutan recently bought two helicopters from India for search and rescue operations as proof

that bilateral ties were going strong.

While Bhutan looks up to India for growth and development, Indias interest in Bhutan is obvious. Bhutan is strategically located as a buffer against

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China. It is also a source of cheap and abundant electricity for Indias north-eastern region. Though India sees GNH as a hurdle to expand hydel

projects in Bhutan, foreign ministry officials say it will continue to provide grants and loans to the government. This effectively ties Bhutans economy

and future to India.

As Bhutan taps its abundant rivers and streams to generatehydropower and expands the scope of tour ism, it will be interesting to see how the kingdom

retains its forest wealth and principles of GNH. Its balancing act holds lessons for the world.