During the high-profile visit of the Indian Prime Minister to Bhutan, a renewed commitment towards safeguarding each other’s national interests and security was firmly established. In this context, key areas such as space research, aviation, IT, power, and education were brought to the forefront, paving the way for further strengthened ties.
Strengthening Bilateral Ties with MoUs
Ten Memorandum of Understanding (MoUs) were signed between India and Bhutan, covering diverse areas such as space research, aviation, IT, power, and education. This extensive mutual agreement serves as a potent catalyst, infusing new vigor into their bilateral ties.
Emphasis on Hydro-Power Development
Both nations highlighted the significance of hydro-power development as a crucial element of mutually beneficial cooperation. The recent inauguration of the 720 MW Mangdechhu Hydroelectric Plant by the two Prime Ministers underscores this fact. Besides, both countries are exploring ways to expedite the completion of ongoing projects such as Punatsangchhu-1, Punatsangchhu-2, and Kholongchhu.
Joint Space Endeavors
In an ambitious step forward, the leaders agreed to collaborate on the joint development of a small satellite specifically for Bhutan. This reflects the shared vision and commitment to harness the potential of space technology for national growth.
Expansion of Bilateral Trade and Investment
The two countries recognized the importance of boosting bilateral trade and investment. They agreed on specific strategies to expand these vital economic domains, promising significant returns in the near future.
| Areas of Cooperation | Signed MoUs |
|---|---|
| Space Research | Yes |
| Aviation | Yes |
| IT | Yes |
| Power | Yes |
| Education | Yes |
Currency Swap Enhancement under SAARC Framework
Reinstating the economic support, the Indian Prime Minister assured his Bhutanese counterpart of a positive response to Bhutan’s request to enhance the currency swap limit under the SAARC Currency Swap Framework. As a stopgap, an additional USD 100 million currency swap under the Standby Swap Arrangement was also offered.
Boosting Educational Scholarships and Digital Payments
India declared an increase in scholarships for Bhutanese students studying at Nalanda University, from two to five. Recognising the importance of digitisation, both leaders also launched the facility for use of Indian RuPay cards in Bhutan, which would lessen the need to carry cash, stimulate the Bhutanese economy and further unify the two economies. Feasibility studies were agreed upon, to evaluate the potential use of India’s BHIM app in Bhutan, with a view to encouraging cashless transactions between the two nations.
Inauguration of Ground Earth Station of South Asian Satellite
The two Prime Ministers also inaugurated the Ground Earth Station of the South Asian Satellite in Thimphu, established with the assistance of the Indian Space Research Organisation (ISRO). This major technological leap once again illustrates the close cooperation between India and Bhutan in the area of space technology.
