Embassy of IndiaThimphu

2003-04

A. Excerpts from MEA Annual report wrt Bhutan

Bhutan is one of India’s closest neighbours with which it shares mutually beneficial relations in a wide range of fields. Indian Rupee is legal tender in Bhutan and India accounts for over 90% of Bhutan’s global trade. People and goods move freely across the open border of 700 kms. The special relationship is sustained by the exchange of regular visits including at the highest level between the two countries.

Crown Prince of Bhutan, Dasho Jigme Khesar Namgyel Wangchuck, visited India at the invitation of the Vice President, from 28 August-1 September 2003. During the visit, a Memorandum of Understanding (MoU) was signed between the Government of India and the Royal Government of Bhutan for establishing an India-Bhutan Foundation with a joint corpus of funds. The objective of India-Bhutan Foundation is to enhance people to people interactions to further mutual interests.

King Jigme Singye Wangchuck of the Kingdom of Bhutan paid a State visit to India from 14-18 September 2003. During the visit, the President and Vice-President held talks with the King. The Prime Minister, Deputy Prime Minister, External Affairs Minister and Minister of Finance held discussions separately. On the eve of the visit, Government of India conveyed its commitment on a number of projects and programmes under Indian assistance to Bhutan’s 9th Five Year Plan 2002-2007. An MoU for the preparation of a Detailed Project Report on the 900 MW Punatsangchu Hydroelectric Power Project was also signed during the visit. There was an exchange of views on a wide range of issues of mutual interest and concern, including the presence of Indian Insurgent Groups (IIGs) in Bhutan, and the various measures on the part of the Royal Government of Bhutan to persuade them to leave Bhutan. Both sides agreed to continue working closely with a view to resolving the issue. The two governments reiterated that as close friends and allies they would not allow their territories to be used by anyone for carrying out activities that are harmful to each others national interests. Some long pending issues relating to the Indo-Bhutan boundary were resolved at a bilateral meeting concluded on 24 February 2004 in Thimphu.

B. Budget allocation to Bhutan

C. List of MoUs signed between India and Bhutan in 2003

D. Details of Incoming Visits by Heads of State / Heads of Government / Vice Presidents / Foreign Ministers and Equivalent to India in 2003