Gelephu Mindfulness City: Bhutan’s experimental economic hub of the future

Bhutan, the country that introduced the world to the concept of Gross National Happiness (GNH), has long prioritised well-being over sheer economic growth. 

Now, in a bold move, the Himalayan kingdom is launching the Gelephu Mindfulness City (GMC), an ambitious project that aims to serve as an interconnected bridge of sustainable development between South and Southeast Asia.

The city will also serve as the epicentre for testing and implementing new policies, technologies and governance models, functioning as a model for reform, where progressive ideas and systems will be piloted before scaling them nationwide.

According to the World Bank, trade between South Asia and Southeast Asia grew ninefold between 2000 and 2018, rising from $38 billion to $349 billion. 

Bhutan's government hopes to capitalise on this growth by using Gelephu and Samdrup Jongkhar as key trade corridors, linking India to Myanmar, Thailand, Cambodia, Laos, Vietnam, Malaysia, and Singapore.

Their King Jigme Khesar Namgyel Wangchuck announced plans for the city on National Day, 17 December 2023, describing it as a historic turning point. "Gelephu will become a gateway connecting Bhutan to the world and the future — a gateway to markets, capital, new ideas, knowledge, and technology," he declared.

They will establish a Special Administrative Region (SAR) to grant Gelephu executive autonomy and legal independence, setting it apart from conventional Special Economic Zones (SEZs). That means it will have its own legal and financial system.

However, unlike SEZs in many countries that attract businesses indiscriminately, Bhutan plans to carefully screen and invite companies aligned with its values of sustainable and equitable development.

The city will be spread over an area of more than 2,500 sq km (965 sq miles) on the border with neighbouring India and offer space to businesses working on finance, tourism, green energy, technology, healthcare, agriculture, aviation, logistics, education and spirituality.

The GMC project is structured around three key pillars: energy, connectivity and skill development.

Bhutan's small economy faces the challenge of attracting foreign investment while protecting its sovereignty and sustainability. But will global investors adapt to its unique regulations?

Bhutan plans to attract investments by offering competitive regional hydropower pricing while also tapping into alternative sources like solar, wind and thermal energy. Gelephu's international airport and digital infrastructure investments will enhance global access. The initiative aims to equip their workers with skills for a modern economy.

The Mindfulness City will be home to one to two million people. How will their daily lives be?

As Bhutan is a carbon-negative country, GMC will operate on 100% renewable energy. The city will promote walking and cycling to reduce emissions, green spaces for meditation and relaxation, mindfulness-based education, public community activities, healthcare and wellness centres, and eco-tourism.

It incorporates Bhutanese culture into architecture, the protection of farmlands, wildlife sanctuaries, and heritage. The environment-friendly city will have no structure taller than the trees, with minimal, mostly residential structures near the sanctuaries and farmlands, and most structures concentrated towards the centres. 

Gelephu, a vast flatland, will be even more accessible once the envisaged transportation infrastructure is completed. The government of India has committed to connecting border towns with railway lines and developing and improving major roads leading to Bhutan.

How the city could benefit India

Gelephu is strategically situated on the Assam border, offering 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.

The Mindfulness City will be spread over an area of more than 2,500 square kilometres (965 sq miles) on the border with neighbouring India. It offers space to businesses that work on finance, tourism, green energy, technology, healthcare, agriculture, aviation, logistics, education, and spirituality.

"It is designed for Bhutan. But it is not just for Bhutan. It is going to benefit Assam and all of India," Bhutan's Prime Minister Tshering Tobgay told The Week. "We see it as an economic gateway for the world to India and through India to Southeast Asia."

Gelephu, a town at the moment, has 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, giving the landlocked country access to global markets.

India is also playing a pivotal role in the creation of the city. Assam Chief Minister Himanta Biswa Sarma visited Bhutan last December, bringing further excitement to the plans of building the first India-Bhutan rail link connecting Kokrajhar and Gelephu, where they also plan to build an international airport.

Gelephu's location on the Indian border provides strategic advantages, but also complexities, such as its relationship with China. But Bhutan understands very well the importance of balancing relations with its two big neighbours. Thus the city aims to bring India and Bhutan closer without disturbing the former's comfortable relationship with China. 

With the GMC project, it aims to keep up with the demographic advantages and the rapid economic growth of the neighbours. 

The project's timeline is 21 years, but the expansion of infrastructure would be an ongoing process. Similar large-scale initiatives have faced delays worldwide. Whether Bhutan will be able to maintain momentum and political will over such an extended timeline remains to be seen.