♤ India continues to be the largest trade and development partner of Bhutan.

♤ Planned development efforts in Bhutan began in the early 1960s. The First Five Year Plan (FYP) of Bhutan was launched in 1961. Since then, India has been extending financial assistance to Bhutan’s FYPs.

♤ Standby Credit Facility: GoI extended a standby credit facility of Rs 1000 crores to RGoB to help Bhutan overcome the rupee liquidity crunch. This Credit Facility was provided at a concessional interest rate of 5% per annum. It is valid for 5 years.

♤ The new free trade agreement is in force since 29 July 2017, provides for a free trade regime between the territories of India and Bhutan. The agreement also provides for duty- free transit of Bhutanese merchandise for trade with third countries.