Thimphu/New Delhi, Oct 4 India’s Foreign Secretary Vikram Misri held talks with Bhutan’s Prime Minister Tshering Tobgay on a range of issues, including connectivity, hydropower cooperation and trade.
Prime Minister Tobgay, in a social media post on Saturday, said he was pleased to meet foreign Secretary Misri on Friday and discussed a range of mutual interests, including connectivity, hydropower cooperation, trade and commerce, and people-to-people relations.
The Foreign Secretary also called on His Majesty the King of Bhutan and met the Foreign Minister of the Himalayan country.
According to a statement by the Indian embassy in Bhutan, “In keeping with the tradition of regular high-level exchanges, Foreign Secretary Vikram Misri visited Bhutan on 3 October 2025 for discussions encompassing the entire gamut of special and multifaceted bilateral partnership. During his visit, the Foreign Secretary had an audience with His Majesty the King, and called on the Prime Minister and Foreign Minister of Bhutan.”
India and Bhutan share a tradition of regular high-level exchanges high-level exchanges. The latest visit by the Indian Foreign Secretary comes as both sides continue to explore new avenues of cooperation, while building on their deep-rooted ties in energy, infrastructure, and cultural exchange.
“The basic framework of India-Bhutan relations is the Treaty of Friendship and Cooperation signed in 1949 between the two countries, which was renewed in February 2007,” MEA said.
The India-Bhutan Agreement on Trade, Commerce and Transit — which was first signed in 1972 and revised most recently for the fifth time in 2016 — establishes a free trade regime between the two countries. The Agreement also provides for duty free transit of Bhutanese exports to third countries. Bilateral trade is conducted in Indian Rupees, which is at par with the Bhutanese Ngultrum.
India is Bhutan’s top trade partner, both as an import source and as an export destination. Since 2014, India’s trade with Bhutan has more than tripled — from $484 million in 2014-15 to $1,777.44 million in 2024-25, accounting for over 80 per cent of Bhutan’s overall trade. Throughout this period, the balance of trade has consistently remained in India’s favour.
India’s major exports to Bhutan include petrol and diesel, rice, wood charcoal, coke and semi-coke, ferrous products obtained by direct reduction of iron ore, maize (excluding seed), soya-bean oil, smartphones, and iron or steel structures and parts, among others.
On the other hand, India’s key imports from Bhutan consist of electricity, ferro-silicon, dolomite chips, ferro-silico-manganese, Portland pozzolana cement, pebbles and gravel, dolomite slabs, semi-finished iron or non-alloy steel products, beer made from malt, and ordinary Portland cement.
As of December 2024, Bhutan had approved a total of 121 foreign direct investment (FDI) projects, with India accounting for approximately 55 per cent of total FDI inflows, making it the largest source of FDI in the country. Indian investments are primarily focused in sectors such as hydropower, banking, IT services, and infrastructure development.
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