The Union Cabinet has approved a memorandum of understanding (MoU) for the general supply of petroleum, oil, lubricants, and related products from India to Bhutan, according to a statement of the Press Information Bureau.
This is a significant step in enhancing bilateral trade in the hydrocarbon sector and ensuring a secure and long-term supply of petroleum products to Bhutan. The MoU aims to promote mutually beneficial economic and commercial linkages between the two countries.
By facilitating the exchange of petroleum products, both India and Bhutan can achieve substantial gains in their respective economies. The signing of the agreement is in line with India’s vision of becoming self-reliant by promoting exports.
The MoU will also play a strategic role as a Energy Bridge in India’s Neighborhood First Policy. It is expected to provide a framework for cooperation in the hydrocarbon sector, thereby promoting synergy between the energy industries of India and Bhutan. The approval of the memorandum of understanding is a significant step in the strengthening of economic ties between India and Bhutan.