India and Bhutan Agreement

India and Bhutan Agreement: A Step Towards Strengthening Ties

On 27th April 2021, India and Bhutan signed a Memorandum of Understanding (MoU) for cooperation in the areas of trade, economic, and technical cooperation. This agreement is a significant step towards strengthening the ties between two countries, which share a historical and cultural bond.

The agreement will pave the way for the development of a framework for cooperation in the areas of trade, investment, and connectivity. It will also promote the exchange of knowledge and expertise in various fields such as agriculture, health, and education. The MoU also envisages the possibility of setting up a Joint Working Group (JWG) to oversee the progress of cooperation in the designated areas.

One of the key areas of cooperation identified in the agreement is the development of hydropower projects in Bhutan. India has been a significant investor in Bhutan’s hydropower sector, which is the backbone of the country’s economy. With the new agreement, India and Bhutan aim to enhance the bilateral cooperation in the hydropower sector and explore the potential for joint ventures.

The agreement will also provide a boost to the trade relations between the two countries. India is Bhutan’s largest trading partner and accounts for nearly 90% of Bhutan’s total exports. The MoU will facilitate the exchange of information between the two countries on trade policies, regulations, and procedures.

Furthermore, the agreement also focuses on enhancing the tourism sector in Bhutan. India is one of the largest sources of tourist arrivals in Bhutan, and the agreement intends to promote tourism cooperation between the two countries. It includes initiatives such as the exchange of information on tourism policies, participation in international tourism events, and the promotion of tourism circuits.

In conclusion, the India and Bhutan Agreement is a significant step towards strengthening the bilateral ties between the two countries. The agreement covers a range of areas, including trade, investment, hydropower, tourism, and education, and presents numerous opportunities for cooperation. The agreement comes at a time when the world is facing significant challenges due to the COVID-19 pandemic, and it emphasizes the importance of regional cooperation in overcoming these challenges.