Indo-Bhutan relation: A story of friendship & fraternity

The relationship between India and Bhutan is based on the pillars of trust, goodwill and mutual understanding.

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The two neighbours have a close civilisational, cultural and economic relationship that dates back centuries. Bhutan considers India as gyagar, meaning the holy land, as Buddhism originated in India, which is the religion followed by the majority of Bhutanese.

The relationship between the two countries further strengthened with the establishment of diplomatic relations between them in 1968. The basis of this relationship is formed on the solid foundation of the Indo-Bhutan Friendship Treaty of 1949 which emphasises “perpetual peace and friendship, free trade and commerce, and equal justice to each other’s citizens.”

Bhutan not only shares a 699 kilometres long boundary with India adjoining four Indian states but is also a key player in two of India’s cardinal foreign policy elements - Neighbourhood Policy and Act East Policy.

For India, Bhutan’s socio-economic development and territorial integrity have always been a key plank in its foreign policy agenda. The two countries have a close strategic partnership, with India providing assistance to Bhutan in various sectors, including economic development, infrastructure, education, health and security.

India is not only Bhutan’s biggest development partner but also the most important trading partner both as a source and market for its trade in goods and services. India provides not only the transit route to a landlocked Bhutan but is also the biggest market for a number of Bhutan’s exports including hydroelectricity, semi-finished products, ferrosilicon and dolomite.