They also reaffirmed their commitment to work closely to further strengthen the India-Bhutan partnership anchored in trust, goodwill and mutual respect. Last November, PM Modi visited Thimphu on a two-day visit which aimed at deepening India-Bhutan partnership and reinforcing India’s commitment to its Neighbourhood First Policy. The visit also marked another major milestone in India-Bhutan energy partnership with the inauguration of the Punatsangchhu-II hydropower project. Bilateral trade is conducted in Indian Rupees, which is at par with the Bhutanese Ngultrum. Since 2014, India’s trade with Bhutan has increased more than three times — 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.

Source: Daily Nation February 18, 2026 13:11 UTC