Cabinet approves signing of various MoUs between India and Bhutan

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Signed MoUs areas and their Significance
- General Supply of Petroleum and Related Products: To promote trade in hydrocarbons and to ensure a secured supply of petroleum to Bhutan.
- Energy Efficiency and Energy Conservation: To assist Bhutan in enhancing energy efficiency in the household sector by promoting star labeling program.
- Food safety: T0 promotes ease of doing business by reducing compliance costs.

India and Bhutan's Relationship: The basic framework of the relationship is the Treaty of Friendship and Cooperation signed in 1949, which was renewed in 2007.
- Trade: Bilateral trade reached $ 1.42 Billion (2021-22), accounting for 80% of Bhutan’s overall trade, India is Bhutan’s top import and export destination.
  - Trade, Commerce, and Transit Agreement (2016) establishes a free trade regime and allows Bhutan duty-free transit of goods to/from third countries.
- Developmental: Scholarships to Bhutanese students, support in Skill development initiatives and sectors like health, agriculture, etc.
- Hydropower: India constructed four major hydroelectric projects in Bhutan.
- New areas of Cooperation: Launch of RuPay, and BHIM app in Bhutan, joint development of India-Bhutan SAT, etc.
Challenges: Bhutan-China border discussions on the Doklam plateau, Delay in completion of projects by India, etc.