H.E. Ms. Tashi Peldon, Deputy Chief of Mission of the Kingdom of Bhutan at Chamber India event

President of Chamber India Mr. Abhinav Balyan met H.E. Ms. Tashi Peldon, Deputy Chief of Mission of the Kingdom of Bhutan at an event hosted by the chamber.

Diplomatic relations between India and Bhutan were established in 1968 with the establishment of a special office of India in Thimphu. 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 February 2007. The Golden Jubilee of the establishment of formal diplomatic relations between India and Bhutan was celebrated in the year 2018.

India has been extending economic assistance to Bhutan’s socio-economic development since the early 1960s when Bhutan launched its Five Year Plans. India continues to be the principal development partner of Bhutan. For the 12th Five Year Plan, India’s contribution of Rs. 4500 cr. will constitute 73% of Bhutan’s total external grant component

The 720 MW Mangdechhu was commissioned in August 2019. Two HEPs namely, 1200 MW Punatsangchhu-I, 1020 MW Punatsangchhu-II in Inter-Governmental mode and Kholongchhu HEP (600 MWs) under the joint venture mode are under various stages of implementation. In consultation with the Ministry of Power/DoE, the implementation formalities of the 2585 MW Sankosh HEP are currently being finalized.

In 2018, total bilateral trade between the two countries stood at Rs. 9227.7 crores. Major exports from India to Bhutan are mineral products, machinery and mechanical appliances, electrical equipments, base metals, vehicles, vegetable products, plastics and articles. The 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.