Bhutan, traditionally known as Druk Yul, meaning ‘land of the thunder dragon’, is a small kingdom in the eastern Himalayas.
It shares borders with China in the north and west and with India in the east, south and south-west. Bhutan has had close relations with India since ancient times.
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A treaty of friendship and cooperation signed in 1949 ensures complete freedom of trade between India and Bhutan. The treaty also ensures equal treatment for Indian and Bhutanese citizens in each other’s country.
India has provided financial and technical aid to Bhutan in various fields, including telecommunication, rural electrification, power generation, construction of airports, hospitals, roads, bridges, etc., and renovation of places of cultural importance.
India and Bhutan cooperate in matters of mutual security. In 2003, the governments of Bhutan and India launched a joint military operation to drive out militants who had set up bases in Bhutan.