Signaling a historic shift in its policy towards smaller neighbours, India is set to rewrite a 57-year-old treaty with Bhutan that was patently unequal and widely seen as a symbol of New Delhi’s hegemonic intent in the subcontinent.

India has agreed to undertake permanent changes in the 1949 Indo-Bhutan treaty to allow the Bhutan government a more independent say in its foreign policy. It’s learnt that the language in Article 2 of the treaty which asks Bhutan to be “guided by the advice of Government of India in regard to its external relations,” will be replaced by “language of friendly cooperation” that, in effect, will give a free hand to Thimpu in international affairs as long as it does not act against Indian interests.

Another crucial provision that is to undergo change will be Article 6 which allows Bhutan to import “arms, ammunition, machines, warlike material or stores” for its “strength” and “welfare” but with India’s “assistance and approval”. While the exact formulation it still to be finalised, sources said, the idea of prior Indian approval for every military purchase will be relaxed. More likely, Bhutan will not require any such approval in purchase of non-lethal military stores and equipment. There will be influence in the form of assistance in making all military purchases, but sources said this will be reflected in the revised treaty more in the form of advice than control.

Article 4 of the treaty, which refers to India returning 32 sq miles territory in the area of Dewangiri, will be struck off as action has already be taken on this issue.

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