New Delhi, Nov 10 (NationPress) Prime Minister Narendra Modi is set to visit Bhutan from November 11 to 12, with the goal of enhancing India's trade and investment relations with the Himalayan nation.

The distinctive trade dynamics between India and Bhutan are rooted in the 2007 India-Bhutan Friendship Treaty and the 2016 India-Bhutan Agreement on Trade, Commerce, and Transit. These agreements create a free trade environment and grant Bhutan duty-free transit for goods to and from other countries.

India remains Bhutan's premier trading partner, responsible for a significant portion of its imports and exports. The share of Bhutan's total trade with India rose from 79.17% in 2023 to 79.88% in 2024.

In monetary terms, India-Bhutan bilateral trade reached ₹12,669 crore in 2024 (January-December), with India's exports to Bhutan totaling ₹9,538 crore and imports from Bhutan amounting to ₹3,131 crore.

India has granted special exemptions from restrictions on the export of essential goods to Bhutan. In response to Bhutan's requests, several trade routes have been approved to facilitate its exports to India and beyond. Recently, a B2B agreement was signed for the supply of various fertilizers to Bhutan.

Enhancing connectivity between the two nations is a shared priority. This includes establishing cross-border rail links, improving road infrastructure, creating Integrated Check Posts, and enhancing digital connectivity and trade routes.

On September 29, 2025, an intergovernmental MoU was signed in New Delhi to establish railway links between India and Bhutan. The project includes two rail links, Kokrajhar-Gelephu (69 km) and Banarhat-Samtse (20 km), with an estimated cost of ₹4,033.34 crore.

To ease the movement of people, including third-country nationals, an Immigration Check Post was inaugurated at Darranga, Assam on November 7, 2024. The Jogigopha Inland Waterway Terminal, inaugurated in January 2025, will further enhance regional trade connectivity.

India and Bhutan also share a long-standing partnership in the hydropower sector. To date, India has collaborated with Bhutan on five major hydroelectric projects (HEPs) totaling 3156 MW, including the 336 MW Chukha HEP, 60 MW Kurichhu HEP, 1020 MW Tala HEP, 720 MW Mangdechhu HEP, and the recently completed 1020 MW Punatsangchhu-II HEP.

A 1200 MW Punatsangchhu-I HEP is currently under construction. India has also facilitated Bhutan's access to the Indian market for power sales, allowing HEPs like Basochhu and Nikachhu to trade their energy on the Indian Energy Exchange (IEX).

Space cooperation has emerged as a new area of collaboration. In 2019, Prime Minister Modi and former Prime Minister Dr. Lotay Tshering inaugurated the Ground Earth Station of the South Asia Satellite in Thimphu. Following this, both countries jointly developed the India-Bhutan SAT, launched on November 26, 2022 by ISRO. The Indian government continues to provide training opportunities for Bhutanese engineers in the space field.

Fintech is another sector of collaboration, with the launch of the RuPay Card in Bhutan in two phases (Phase I in 2019 and Phase II in 2020) to facilitate cross-border payments. In 2021, India introduced the BHIM UPI application in Bhutan, leading to increased usage of RuPay cards and BHIM UPI since their inception.

India has also supported Bhutan's initiatives, such as the Gyalsung National Service Programme, which mandates one year of training for all Bhutanese youth upon reaching the age of 18. New Delhi extended ₹200 Crore in grant assistance to the Gyalsung Project, along with a concessionary loan of ₹1,500 crore to develop Gyalsung academies. Both nations have been involved in training programs for Gyalsung.

Additionally, India has expressed full support for Bhutan's Gelephu Mindfulness City project, an initiative led by the King of Bhutan.