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Bhutan's Strategic Location: Bhutan is located between the two countries India and China. Thie position or location of Bhutan plays a significant role in maintaining regional security and stability for both India and Bhutan countries.
Security Cooperation: Bhutan shares a 699 km border with India which is a sensitive border for India. It maintains security and stability in this region which is crucial for both countries. ‘India and Bhutan have a regular exercise “Indian Military Training Team (IMTRAT)”.
Hydro-Power Cooperation: Bhutan’s vast hydro-power project is crucial for the sustainable development. India plays a vital role in developing these projects. India and Bhutan collaboration strengthens economic ties and it contributes to Bhutan’s energy security. However, India also receives electricity from Bhutan. Both are interdependence in energy cooperation.
Bilateral Trade: The India and Bhutan’s trade volume is not substantial when compared to other trading partners. The Bilateral trade is more important for both the countries respectively. India is the largest trading partner of Bhutan, and it provides essential goods and services to Bhutan.
Environmental Importance: Bhutan’s commitment to carbon neutrality is supported by India. India assist in renewable energy, forest conservation, tourism and sustainable development. Both the countries support conservation of environment and sustainability.