MoU signed between India – Bhutan

MoU signed between India – Bhutan


Cabinet approves signing of an MoU between India and Bhutan on cooperation in the field of Energy Efficiency and Energy Conservation Measures.


GS-02 (International Relations)


  • The MoU was signed between the Bureau of Energy Efficiency, Ministry of Power, Government of India and the Department of Energy, Ministry of Energy and Natural Resources, Royal Government of Bhutan.
  • As per the agreement, India aims to assist Bhutan in enhancing energy efficiency in the household sector by promoting the star labelling programme of BEE.
  • India will assist in the formulation of building codes to suit the climate conditions of Bhutan.
  • Retailers will also be trained in the dissemination of energy-efficient products with consumer audiences regarding savings from star-rated appliances.
  • The MoU will enable the exchange of information, data and technical experts related to energy efficiency and energy conservation between India and Bhutan.


  • Energy-intensive appliances are the primary contributors to increased consumption in households or commercial settings.
  • With the rapid expansion of energy-intensive consumer products, the demand for electrical energy has been steadily rising each year.
  • Optimal management of this escalating demand can be achieved through the adoption of high-efficiency appliances by consumers.
  • Spearheading the star-labeling program, BEE now encompasses 37 appliances commonly used in daily life.
  • The objectives of the labelling program are to provide the consumer with an informed choice about energy-saving and thereby the cost-saving potential of the marketed household and other equipment.
  • The Star Labelling Programme has been formulated by the Bureau of Energy Efficiency, under the Energy Conservation Act, 2001.

India – Bhutan:

  • The Cabinet sanctioned the signing of a Memorandum of Understanding (MoU) between the two nations concerning cooperation in food safety.
  • This MoU was formalized between the Bhutan Food and Drug Authority (BFDA), Ministry of Health, Royal Government of Bhutan, and the Food Safety and Standards Authority of India (FSSAI).
  • Under this agreement, BFDA will issue a Health Certificate verifying compliance with FSSAI requirements when exporting products to India, facilitating smoother business operations between Bhutan and India.
  • The Cabinet also approved an MoU between both countries that will promote bilateral trade in the hydrocarbon sector and will ensure a secured and long-term supply of petroleum products to Bhutan.

Economic and Trade Implication:

  • The Preferential Trade Agreement between Bangladesh and Bhutan in 2020 presents opportunities for Bhutan to expand its exports of local produce, fostering increased market access for producers from India and Bangladesh within the sub-region.
  • India’s initiative in the “energy exchange” realm, aimed at integrating more suppliers of hydropower from Bhutan and Nepal, coupled with plans to supply energy to Bangladesh and Sri Lanka, is poised to catalyze intra-regional growth and economic revenues.
  • The success of such ambitious projects lies in their efficient and timely execution. With challenges concerning trade and connectivity in India’s East due to issues with Pakistan and sanctions imposed on Myanmar following the 2021 coup, collaborating with neighboring countries to develop connections, markets, and energy links emerges as a sustainable path forward.