- Issue Briefs and Special Reports
- Jul 15 2017
India's relations with Nepal and Bhutan are formally founded on key treaties — the 1950 India-Nepal Treaty of Peace and Friendship and the 1949 Treaty of Friendship with Bhutan. Politically, India's bilateral ties with these two Himalayan neighbours have an important strategic significance as both these countries serve as a buffer zone between India and China. Today, there is plenty of room for further deepening India's ties with both Nepal and Bhutan, and the recently signed BBIN Motor Vehicles Agreement holds promise. For the progress and expansion of economic links, however, it is necessary to develop the requisite hard and soft infrastructure. This report makes an assessment of the different facets of India-Nepal and India-Bhutan bilateral cooperation, comprising issues related to trade-transit, customs and joint border management, legal framework of existing bilateral agreements, and energy cooperation.