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Home International

Misri, Bhutan PM Hold Talks on Trade, Connectivity, Power

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04/10/2025
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Thimphu/New Delhi, Oct 4: India’s Foreign Secretary Vikram Misri held wide-ranging discussions with Bhutan’s Prime Minister Tshering Tobgay in Thimphu on Friday, focusing on enhancing cooperation in connectivity, hydropower, trade, and people-to-people exchanges.

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Prime Minister Tobgay, in a social media post, said he was pleased to meet Misri and discuss key areas of mutual interest, including trade and commerce, energy collaboration, and cross-border linkages. The Foreign Secretary also called on His Majesty the King of Bhutan and met the country’s Foreign Minister.

According to the Indian Embassy in Bhutan, Misri’s visit on October 3 was in keeping with the tradition of regular high-level exchanges between the two neighbours. Discussions covered the “entire gamut of the special and multifaceted bilateral partnership,” it said.

India and Bhutan enjoy a time-tested friendship rooted in mutual trust and cooperation. The foundation of their ties lies in the 1949 Treaty of Friendship and Cooperation, which was renewed in 2007 to reflect evolving bilateral priorities. The India-Bhutan Agreement on Trade, Commerce and Transit — first signed in 1972 and revised most recently in 2016 — facilitates a free trade regime and allows duty-free transit for Bhutanese exports to third countries.

India remains Bhutan’s largest trade partner, accounting for over 80 per cent of its total trade. Bilateral trade has tripled from $484 million in 2014–15 to $1.77 billion in 2024–25. India exports petroleum products, rice, iron and steel, and food items to Bhutan, while importing electricity, ferro-silicon, dolomite, and cement.

India is also the top source of foreign direct investment (FDI) in Bhutan, contributing about 55 per cent of approved projects as of December 2024. Indian investments are concentrated in hydropower, banking, IT, and infrastructure, reinforcing the deep economic and developmental partnership between the two nations.

Tags: Bhutan PM Hold Talks on TradeconnectivityMisriPower

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