How Bhutan’s Gelephu Mindfulness City on the Assam border could benefit India

Robin Datgiri, 51, lives in the last house on the border in Assam’s Hatisar village, which lies next to the town of Gelephu in Bhutan. As a child, he would cross the border daily to attend school in Gelephu, where he not only received an education, but also discounted meals (Rs3 for Indians)―an opportunity that shaped his childhood. Proximity to Gelephu has been a gateway to a better life for the people of Hatisar, providing access to resources and opportunities that were otherwise scarce in their small village.

“We step into Gelephu for our daily needs even today as it is less than a kilometre away compared with the nearest Indian town, Bongaigaon, which is 60 kilometres away,” said Datgiri, who runs a pharmacy. “There is no general practitioner in Hatisar. Local doctors in Gelephu are our first call for any emergency.”

Gelephu, a town strategically situated on the Assam border, offers convenient access to other districts within Bhutan as well. It has long been a passage between Bhutan and India, serving as an important trading post and transit point for monks and traders moving between the Indian plains and Bhutanese highlands. Its long-standing role as a lifeline and strategic location on the fertile plains, in contrast to the mountainous terrain that dominates much of the Himalayan kingdom, has given shape to a new dream for King Jigme Khesar Namgyel Wangchuck, who is developing the Gelephu Mindfulness City (GMC) as the first of its kind special administrative region (SAR) in Bhutan based on a “two systems, one country” policy.

“It is designed for Bhutan. But it is not just for Bhutan. It is going to benefit Assam and all of India,” said Prime Minister Tshering Tobgay. “We see it as an economic gateway for the world to India and through India to southeast Asia.”

This transformation aims to turn Gelephu into an economic and a strategic corridor bringing India and Bhutan closer, without disturbing Thimphu’s comfortable relationship with its other neighbour, China. After 60 years of development, Bhutan still depends on the goodwill of donors. The jewel in the Himalayas is also going through the biggest existential crisis in history with its youth moving out in search of better opportunities. It is estimated that nearly 40,000 people from its seven lakh population have left in the last few years.

But Bhutan has an optimistic approach to tackling its problems. “Disappointment is an integral part of human nature. But it is this disappointment, which is different from cynicism, that promotes progress and injects new thinking in a society,” said Lyonpo Sonam Tobgye, former chief justice of the supreme court of Bhutan.

The visionary monarchs are looking into the future once again―just like they did while making a successful transition to democracy. Dasho Kungzang Wangdi, the first chief election commissioner of Bhutan, said that before the first national assembly elections were held in 2008, many wanted to continue with the existing system because they were happy with the monarchy. “I think whenever you talk of monarchy [outside Bhutan], you think of it as dictatorship or autocracy where things are not too good.” Wangdi said the Bhutanese saw it in a unique way. Their kings are more democratic in nature and the well being of people is their priority, he said.

This time, the effort is to keep up with the demographic advantages and the rapid economic growth of its neighbours―India and China. The policy of neutrality has kept the kingdom strong and stable, but Jigme realises that the time has come for Bhutan to take the next step forward, alongside China and India, which are expected to become the world’s largest and third largest economies, respectively, as per their own estimates. This means that the global economic centre of gravity will shift towards this region, creating tremendous opportunities for business and wealth creation.

Historically, Gelephu has enjoyed a higher level of development compared with many other Bhutanese towns. During the 1970s and 1980s, it served as a thriving hub for industries and trade. Gelephu produced and exported a diverse range of goods, including candles, matchsticks, soaps, honey, incense, timber and other natural products. Furthermore, the town significantly benefited from Bhutan’s flourishing tourism industry, attracting a substantial number of visitors from Assam. The outreach will only get bigger with the GMC being centred around Gelephu and built over 2,600 square kilometres, giving the landlocked country access to global markets. And India is once again playing a pivotal role in the creation of the GMC.

Interestingly, Gelephu has a nostalgic connection with India as well. It is one of the three frontier towns of Bhutan which had Indian names till 1959. Gelephu was originally called Hatisar, while the other two were called Jaigaon Bhutan and Gudama or Mela bazaar. Old timers recall that one day, Bhutan’s third king Jigme Dorji Wangchuck summoned Lopen Nyapchhi, the storekeeper of the palace, to know why some of the Indian letters were delivered in Bhutan and some Bhutanese ones went to India. Lopen said it was because the three border towns did not have Bhutanese names. So the king, who was about to leave on a trekking expedition, asked him to choose new names. He asked Lopen to broadcast the names on the radio and said that he was carrying his radio set with him and would check whether Lopen obeyed his order.

As soon as the king left, Lopen rushed to the only wireless station in Thimphu to ask help from Mr Chawna, an Indian who had set up the station. Chawna was fondly called “wireless babu” by the local people. He told Lopen that the announcement would not be effective unless something was done to attract the attention of the listeners. So he played songs and jokes and then made the announcement about the new names―Phuentsholing, Gelephu and Samdrup-jongkhar―every day for an hour between 8am and 9am for two weeks. Even the king was impressed.

Hatisar is now in India and Gelephu in Bhutan, but the sharing of songs, cultures, families and friends continues. The familial connections are so robust that the GMC elicits an immediate, positive response from the children of Bhutanese who are married to Indians and residing in India. Sujit Chhetri, the head of Hatisar village, was born to an Assamese father and a Bhutanese mother. Both his sisters are married in Gelephu. “We are excited about the GMC project as it will bring development to both India and Bhutan. Already, land prices are going up. When businessmen from outside come and set up industries and shops, the economy on the border will grow,” said Chhetri. “There was no border in the past, hence the population is a mix of Indians and Bhutanese. ”

Like Datgiri, Chhetri, too, did his schooling in Gelephu, enjoying his daily lunch of dal and fish served to students. “From the early 1970s to the late 1980s, it is understood that there were no [border] gates, with the exception of a pull-down barrier utilised by the forestry and trade departments,” said Dawa Penjor, general secretary of the Bhutan-India friendship association.

But today, movement across the border is restricted as check posts have come up. Border forces in Assam ensure that illegal movements and activities do not scar the friendship. Securing the borders of the tiny kingdom has long been a concern for Bhutanese and Indian governments, which share a history of crackdown on transnational linkages of northeast Indian insurgent groups taking shelter across the border. Bhutan’s first military operation in 140 years was against armed insurgents of ULFA and the National Democratic Front of Bodoland in 2003. In the misty clouds of the Dochula Pass, Bhutan’s highest mountain pass, stand 108 memorial stupas, erected in the memory of the brave Bhutanese soldiers who sacrificed their lives.

“Over the past few years, all the militant groups active along the India-Bhutan border have joined the mainstream,” said G.P. Singh, director general of the Assam Police. He said the emphasis was on creating an economic and social environment in Assam that ensured the youth did not get attracted towards militancy. “We have been able to achieve this satisfactorily during the last few years precluding the likelihood of safe haven in Bhutan,” said Singh. The impact is visible. The guns have fallen silent since, showing the success of active cooperation between the governments and security agencies on either side.

The state visit of King Jigme to Guwahati in November 2023, the first official visit by a Bhutanese monarch to Assam, demonstrated that the time was ripe to reap the dividends of peace. Assam Chief Minister Himanta Biswa Sarma will be visiting Bhutan next month, bringing further excitement to the plans of building the first India-Bhutan rail link connecting Kokrajhar and Gelephu, where Bhutan also plans to build an international airport. Bhutan’s approach to its neighbourhood has shifted from self preservation and isolation to embracing openness, balancing its economic needs with growing opportunities. The sustainable development fees charged for foreign tourists might surprise most Indians, but Bhutan realises that protecting its pristine landscape is as important as attracting investment and tourists. “This is where friendship plays a big role. Those who understand that the bond runs deep will not see it from the prism of reciprocity or equality [with India],” said Penjor. He lives in Gelephu, barely a kilometre from the border and finds himself in Assam almost every day.

While India enjoys close geographic proximity with Bhutan, China, too, remains a key neighbour. But the Himalayan divide creates a kind of distance between Bhutan and China. Bhutan understands the importance of balancing relations with the two big neighbours.

Penjor said the GMC project, too, aligned with the future of this trilateral partnership. “I don’t think China has any reservations to the GMC project or any collaboration with India. China wants a prosperous neighbour who can look after itself. Lack of good governance or development impacts the stability of the region, which India and China do not want,” he said. Proximity has made the neighbours more pragmatic over the years. Penjor pointed towards Sino-Indian trade ties to argue that the neighbourhood should not worry about the Bhutan-China relationship. “China is India’s largest trading partner. Other than occasional border issues, both countries continue economic activities. Ninety per cent of Bhutan’s imports are from India. This itself explains that India is a key partner for both. So it is wrong to say that the Bhutan-China equation can disturb trilateral balance,” he said.

Understanding the Bhutanese perspective is key for India to resolve border differences with China as there are two important tri-junction points―one in the west involving Doklam and the other in the east of the McMohan line which delineates the Sino-Indian border in this region. In 2017, Doklam was the site of a tiff between India and China as India believes that Doklam is part of Bhutanese territory and any part of this territory cannot be ceded to China as it overlooks the critical Siliguri corridor that links the northeast to the rest of India. There is a clear understanding in Bhutan that any resolution coming through in its border talks with China will primarily have India’s interests in mind, which is why the issue has dragged on for long. “It pains the Bhutanese to see the Indian media question Bhutan’s friendship with India by insinuating that Bhutan and China are coming closer,” said Penjor.

For India to be a big brother without a big brother attitude would certainly entail honouring the 1949 peace and friendship treaty, by not interfering in Bhutan’s internal administration, and also close cooperation on issues of national security without interfering in foreign policy based on the 2007 friendship treaty. This also explains why the GMC will not have an inclusion or exclusion criteria when it opens up its doors for investments from countries, companies and individuals, with or without diplomatic relations with Bhutan. “It all boils down to business ideas and investments that align with the vision of the GMC. It will be invitation based, and investors must follow the GMC guidelines. As long as the standards are met, why should there be exclusion criteria?,” asked Dr Lotay Tshering, former prime minister of Bhutan, who is part of the implementation team of the GMC.

The Gelephu SAR will be governed by the GMC Authority, which will include international domain and investment experts, according to the blueprint prepared by the Bhutan government. Since the monarchy is the most trusted institution in Bhutan, the SAR will be established through the royal prerogative of the king and the promulgation of a royal charter. After the announcement of the GMC on the national day (December 17) in 2023, work has already begun to enact major changes in the country’s governance structure to create a different executive and judicial system that will be autonomous from the rest of the country.

What makes the Bhutan model unique is that the autonomous region will be run by international domain experts, who may belong to different nationalities, but will share a common vision to develop GMC mindfully to make it the “silicon valley of the east”, where spiritual values and nature will form the bedrock of technological progress and development of a greenfield global city. Sources said Bhutan was studying the Singapore model among others to learn world-class business efficiencies. “The idea is to blend modern day development, technology, artificial intelligence and urban living with spirituality, nature and meditation to bring a balance that you will not find in developed cities around the world,” said Penjor.

The GMC will develop its own legal system, which is likely to be based on the English common law system and OECD (Organisation for Economic Cooperation and Development) standards. “Newer parameters of legal knowledge are unfolding today which require us to be responsive to the changing times and aspirations of people,” said Justice Tobgye. He did not discount the fact that the judiciary, like any other institution, could face challenges, but expressed hope that it should be able to rise to the occasion.

The administration of the GMC will also feature a new model that promotes speed, efficiency and transparency. A new cadre may be created for officials who will serve only within the GMC to ensure flexibility. While a culture of experimentation, development and innovation will be encouraged, Bhutan is mindful of rule of law. It has been seen that, globally, economic hubs run the risk of becoming safe havens for money laundering or tax evasion. Senior government officials said the safety of investment and rule of law would be a priority area. “It will not be a place for random businesses and questionable practices. All investors must understand and honour the vision of the GMC before committing to start a business here,” said Lotay Tshering. The SAR will have a separate central bank that can develop its own monetary policy and even issue its own currency, something that is being discussed within closed doors at the moment.

The GMC will focus on key sectors of tourism, health and wellness, education and research, spirituality, agri tech, forestry and green energy. The GMC timeline is 21 years, but the expansion of infrastructure would be an ongoing process as Bhutan would work for a holistic, mindful city ecosystem that could increase the gross national happiness quotient of its people and also the global community. Dasho Karma Ura, who leads Bhutan’s happiness surveys, highlighted the country’s unique stance: “Small nations like Bhutan, without the power or economic strength to engage in arms races, must rely on neutrality. This neutrality and territorial integrity deserve respect.”

Bhutan may be a late participant in the global race of development and modernisation, but it is getting ready to create something unique. Bhutan’s kings, who introduced democracy when its people and the world least expected it, have set a precedent for thoughtful governance. Now, with the development of the GMC, Bhutan could once again serve as a global example of urban progress rooted in peace and well-being. Its commitment to neutrality is a powerful lesson that there is more than one path to success and even the smallest nations can act as beacons of hope and peace in a world overshadowed by conflict.