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PESTLE Analysis of
India and It’s neighbors
Bhutan and Nepal

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Political
India and Bhutan
• Resident representative of India in Bhutan
• Treaty of Friendship and cooperation signed in 1949 – revised in
2007
• Military: 1000 strong Indian army trains Royal Bhutan Army
• MOUs on bilateral cooperation in education field
• Regular exchange of parliamentarian delegations and officials
• Institutional mechanisms established in areas of border managem
ent, security

India and Nepal

• Uneased relations because of violent agitation in 2015 resumed corre
cted by Modi
• India and Nepal reinitiated bilateral relations in 2008 after Nepal bec
ame democracy
• Chinese diplomatic relations with Nepal is a concern for India
• Visa less entry to Nepal with any valid Indian ID card
 Economic
India and Bhutan India and Nepal

• India is Bhutan's largest trading partner – total • Cooperation for construction of various projects in
trade of Rs8,723 crore in 2016 Nepal - infrastructure in, health, education

• Major exports to Bhutan: machinery and • Indian support for development of communication
mechanical appliances, vehicles, vegetable and technological capabilities lead to mutual
products, mineral products economic and commercial gains

• Major imports: electricity, dolomite, cement • India’s economic growth giving stimulus to Nepals
clinkers, wood products and timber, potatoes growth

• India-Bhutan Trade and Transit Agreement signed i • Indian currency valid in Nepal
n 1972, renewed in 2016
• Hydro projects can be done in the shared rivers
• 1 INR kept equivalent to 1 Bhutanese Ngultrum

• Government of India supports Bhutan’s 11th Five

Year Plans
India and Bhutan
Social
Scholarships awarded to Bhutanese students in Indian edu India and Nepal
cational institutions

Training under ITEC and TCS Colombo plan to upgrade Bound by socio-cultural ties
Bhutan’s administrative and technical skills

India-Bhutan foundation – for people exchanges in Bilateral ties to resolve border disputes – at Susta
education, scientific research, culture and Kalpani

Nehru – Wangchuk cultural center for arts and cultural Indian currency also used in Nepal
functions

60,000 Indians living in Bhuta n

 Technical
India and Bhutan India and Nepal
Flood Management Susta and Kalpani
Joint Group of experts Indian support for construction and
from India and Bhutan restoration needed at Susta and
Kalpani
Kholongchhu HEP Nepal India Eminent
600MW project in Person group (EPG)z
Kholongchu river Technical advancement
also targeted
Punatsangchu-II Hydro
Electric Power Technical Institutions
1020 MW project in western Rs 44mn from india for
Bhutan construction

Mangdechhu HEP Accessibility

720MW project in Central India must invest in
Bhutan infrastrcure to improve
accesibility to Nepal –
reduce Chinese infulence
 Environmental

Infographic Designed
• toIndia-Bhutan
Easy Foundation
change colors, aims
photos and for environmental
Text.
protection also

• Indian Hydro electric projects in Bhutan have adv

ersely affected the environment

• Protect the common rivers to promote tourism an

d to save the nature

Sources:

• https://www.idsa-india.org/an-dec-5.html
• https://in.nepalembassy.gov.np/political-relation/
• www.southasiahudson.com
Thank you