Economic and Political Relations Between Bhutan and Neighbouring Countries

The diversification of Bhutan’s relations began with its entry into the United Nations in 1971, and while external relations continued to be largely confined to India, the establishment of its relations in other areas and at various levels gained momentum over time. This has enhanced the recognition of Bhutan as a sovereign and independent nation, and resulted in the facilitation of economic and development cooperation. As of now, Bhutan has diplomatic bilateral relations with 22 countries. The subsequent chapters mainly reflect on the various facets of Bhutan’s political economy in relation to neighbouring countries in the region.