PM Modi-Tshering Tobgay hold bilateral talks as India-Bhutan ink six agreements

India and Bhutan signed six agreements on Friday to bolster cooperation in areas ranging from energy to space as Prime Minister Narendra Modi met his Bhutanese counterpart Tshering Tobgay to firm up bilateral ties against the backdrop of China’s efforts to settle a border dispute with the Himalayan nation.
PM Modi travelled to Bhutan a day after his visit was postponed due to inclement weather over the airport at Paro.
It is rare for an Indian premier to travel after dates for the general election have been announced and the trip emphasises the importance New Delhi attaches to its relationship with Thimphu.
Tobgay, who made India the destination for his first foreign visit after assuming office in January, personally welcomed PM Modi with an embrace on his arrival at Paro and the Indian premier was presented a guard of honour.
Bhutan’s King Jigme Khesar Namgyel Wangchuck subsequently conferred the Order of Druk Gyalpo, the country’s highest honour, on PM Modi.
PM Modi and Tobgay held talks during a working lunch in the capital Thimphu on various aspects of the multi-faceted bilateral ties. They forged an understanding to enhance cooperation in areas such as renewable energy, agriculture, environment and forestry, youth exchanges and tourism, the external affairs ministry said in a readout.
“India and Bhutan enjoy long-standing and exceptional ties characterised by utmost trust, goodwill, and mutual understanding at all levels,” the readout said.
Ahead of the meeting, the two leaders witnessed the exchange of memorandums of understanding (MoUs) and agreements in areas such as energy, digital connectivity and space.
Under an MoU on petroleum, oil, lubricants and related products, India will facilitate the supply of these items to Bhutan through agreed border points.
An agreement on a Joint Plan of Action on Space Cooperation provides a roadmap for developing collaboration through exchange programmes and training. In November 2022, an Indian rocket carried a satellite jointly developed by India and Bhutan into space.
The two sides also agreed on the text of an MoU for establishing two rail links – Kokrajhar-Gelephu and Banarhat-Samtse – and the modalities for their implementation.
Another agreement for recognising controls exercised by the Food Safety and Standards Authority of India (FSSAI) and the Bhutan Food and Drug Authority (BFDA) will facilitate bilateral trade by reducing compliance costs. This MoU will lead to the acceptance of BFDA’s export inspection certificates by FSSAI for exports to India.
Under an MoU for cooperation in energy conservation, India will assist Bhutan to enhance energy efficiency in households by promoting the star labelling programme developed by the Bureau of Energy Efficiency (BEE).
It also covers the formulation of building codes and creating a pool of energy professionals in Bhutan through training of energy auditors.
An MoU on cooperation on reference standards, pharmacopoeia, vigilance and testing of medicinal products will help develop cooperation and information exchanges for regulating medicines in line with the laws and regulations of each country. This MoU will allow the acceptance of Indian Pharmacopoeia by Bhutan as a book of standards for medicines and supply of generic medicines at affordable prices.
The two sides also signed an MoU on cooperation in sports and youth affairs, and renewed another MoU for a peering arrangement between the National Knowledge Network of India and Druk Research and Education Network of Bhutan.
Also Read: Bhutanese school children line Thimphu’s streets to welcome PM Modi
Following the talks between the two premiers, Bhutan’s King conferred the Order of Druk Gyalpo on Modi. The award was announced earlier on December 17, 2021 for PM Modi’s efforts to strengthen India-Bhutan ties and for New Delhi’s provision of 500,000 doses of Covid-19 vaccines.
The citation referred to PM Modi as “an outstanding embodiment of national, regional, and global leadership”. It added that, under him, India has become the fastest growing economy and will be the third largest economy by 2030.
Describing him as a “figure of destiny”, it said his commitment to safeguarding the environment and investing in renewable energy makes India’s progress well rounded.
India’s “Neighbourhood First” policy has strengthened South Asia and paved the way for collective progress, the citation said.
“Prime Minister Modi is a firm supporter of Bhutan’s national vision to achieve self-reliance and become a developed nation,” it added.
PM Modi’s visit comes against the backdrop of reports that Bhutan and China are moving towards a pact to settle their disputed boundary, a development that could have security ramifications for crucial stretches of the India-Bhutan border such as the Doklam plateau.
The Indian side has been keeping a close watch on efforts by Bhutan and China to resolve their border dispute.
Under the leadership of Tobgay’s predecessor Lotay Tshering, Bhutan held the 25th round of boundary talks with and China in Beijing late last year and signed an agreement for a joint technical team to work on the demarcation of the boundary.
Indian support forms the mainstay of funding for Bhutan’s five-year plans and New Delhi provided aid worth ₹5,000 crore for the 12th plan.
Bhutan was also provided the largest share of the external aid portfolio in India’s budget for 2024-25, with an outlay of ₹2,068 crore.
During Tobgay’s visit to India earlier this month, PM Modi said India will step up support for Bhutan’s 13th five-year plan, including considering a request for an economic stimulus programme, and New Delhi’s development aid will be geared towards creating infrastructure and building connectivity.