India-Bhutan Relationship

In a significant event underscoring the India-Bhutan Relationship, India’s Prime Minister was recently conferred the prestigious ‘Order of the Druk Gyalpo‘ by Bhutan’s King, the first foreign Head of Government to receive Bhutan’s highest civilian award.

Key Highlights of the meeting:

• Financial Assistance: India pledged to provide Rs 10,000 Crore to Bhutan over the next 5 years, emphasizing the commitment to strengthen economic cooperation.
• Strategic Agreements: Both nations exchanged several Memoranda of Understanding (MoUs) and finalized plans for establishing rail links, enhancing connectivity and trade.

India-Bhutan relations:

• Diplomatic relations between India and Bhutan were established in 1968.
• The basic framework of India-Bhutan bilateral relations is the Treaty of Friendship and Cooperation signed in 1949 between the two countries and revised in 2007.
• India has been extending economic assistance to Bhutan’s socio-economic development since the early 1960s when Bhutan launched its 5-Year Plans.
• India is Bhutan’s largest trading partner, with-
  • Major exports from India to Bhutan are mineral products, machinery and mechanical appliances, electrical equipments, base metals, vehicles, vegetable products, plastics and articles.
  • Major items of export from Bhutan to India are electricity, ferro-silicon, portland cement, dolomite, carbides of calcium carbides of silicon, cement clinkers, timber and wood products, potatoes, cardamom and fruit products.

About the Order of the Druk Gyalpo:

• Also known as the Order of the Dragon King, it is the highest decoration of the Kingdom of Bhutan, awarded in recognition of a lifetime of service to the people and Kingdom of Bhutan.
• It exists in 2 categories– First class and Second class.
• It was founded on 2008.

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