The Union cabinet chaired by Prime Minister Narendra Modi has given its nod for signing of a Memorandum of Understanding on general supply of petroleum, oil, lubricants and other related products from India to Bhutan.
The move is aimed at fortifying the economic ties between India and Bhutan. As per the press release the memorandum set to be inked between the union government and the royal government of Bhutan seeks to enhance bilateral trade in the hydrocarbon sector. This is said to ensure a secured and long term supply of petroleum products to Bhutan.
The approval underscores India’s commitment to bolster its commercial relations with Bhutan. One of the primary objectives of the MoU is to foster mutually beneficial economic and commercial linkages between the two nations.
By facilitating the exchange of petroleum products, both New Delhi and Thimphu anticipate substantial gains in their respective economies.
Additionally, the MoU aligns with India’s vision of an Aatmanirbhar Bharat (self-reliant India), as exports play a pivotal role in realizing this goal.
The MoU will be a strategic fit as Energy Bridge in India’s Neighborhood First Policy.
The MoU is expected to provide a framework for cooperation in the hydrocarbon sector, promoting synergy between the energy industries of India and Bhutan.
It will facilitate smoother trade operations, ensuring a steady flow of petroleum products to Bhutan while enhancing India’s export portfolio.
