The Union Cabinet, led by Prime Minister Narendra Modi, has approved the signing of a Memorandum of Understanding (MoU) regarding the General Supply of Petroleum, Oil, Lubricants (POL), and related products from India to Bhutan. This significant step aims to strengthen the economic ties between the two nations.
As per an official statement, the memorandum, to be signed between the Government of India and the Royal Government of Bhutan, aims to boost bilateral trade in the hydrocarbon sector, ensuring a secure and long-term supply of petroleum products to Bhutan.
This approval underscores India’s commitment to enhancing its commercial relations with Bhutan, prioritizing inclusivity and equality regardless of gender, class, or income bias.
One of the key objectives of the MoU is to foster mutually beneficial economic and commercial ties between India and Bhutan. Both countries anticipate significant economic gains through the exchange of petroleum products.
Furthermore, the MoU aligns with India’s vision of an Aatmanirbhar Bharat (self-reliant India), recognizing the crucial role of exports in achieving this objective. It also fits strategically within India’s Neighborhood First Policy, emphasizing energy cooperation as a cornerstone of regional relations.
The MoU is expected to establish a framework for cooperation in the hydrocarbon sector, promoting collaboration between the energy industries of India and Bhutan. It will streamline trade operations, ensuring a steady supply of petroleum products to Bhutan while expanding India’s export opportunities.