India and Bhutan share friendly relations.

India and Bhutan have extraordinary ties of friendship and mutual understanding, goodwill, and respect for each other's interests.

India and Bhutan have extraordinary ties of friendship and mutual understanding, goodwill, and respect for each other's interests.India-Bhutan Friendship Treaty of 2007 provided a solid foundation for the development of their friendly ties in this century. Both countries have witnessed momentous changes and unprecedented economic growth and prosperity over the past decade. Bhutan is carrying out more border trade points by establishing a railway link with India. India is about to approve another permanent land customs station(LCS) to facilitate more export to India. The India-Bhutan Agreement on Trade, Commerce, and Transit was last renewed in 2016 and allows for free trade and commerce between India and Bhutan. The pact also provides for about 21 entry or exit trade points between India and landlocked Bhutan.

During the COVID-19 pandemic, in July responding to a request from the Royal Government of Bhutan, India opened a new trade route under Jaigaon LCS at Ahllay, Pasakha, as a temporary measure to facilitate the export of boulders and riverbed materials to Bhutan.