Bhutan’s Prime Minister Tshering Tobgay and Prime Minister Narendra Modi met in New Delhi to discuss progress in various sectors like energy, connectivity, and development partnership. They emphasized the importance of Artificial Intelligence (AI) for inclusive development and agreed to enhance cooperation in AI and digital technology. Both leaders reiterated their commitment to strengthening the India-Bhutan partnership based on trust and mutual respect.
India and Bhutan have a history of frequent high-level exchanges and are continuously exploring new avenues of collaboration while nurturing their strong ties in energy, infrastructure, and cultural exchange. During PM Modi’s visit to Thimphu last November, efforts were made to deepen the India-Bhutan partnership in alignment with India’s Neighbourhood First Policy. The visit also marked a significant milestone in the energy partnership with the inauguration of the Punatsangchhu-II hydropower project.
The foundation of India-Bhutan relations lies in the Treaty of Friendship and Cooperation signed in 1949 and renewed in 2007. The countries also have a trade agreement that promotes duty-free transit of Bhutanese exports to third countries. India is Bhutan’s primary trade partner, with bilateral trade increasing significantly over the years, reaching $1,777.44 million in 2024-25. India mainly exports items like petrol, diesel, rice, and smartphones to Bhutan, while importing electricity, ferro-silicon, and cement from the country.
