Nine MoUs and an electricity capture contract were exchanged on Saturday between India and Bhutan, in the presence of Prime Minister Narendra Modi and his Bhutanese counterpart Lotay Tshering. ANI | General news Updated august 17, 2019 18:20 IST The BJP-led coalition, led by Modi, which came to power in 2014, saw promoting relations with neighboring countries as a major foreign policy priority. In this context, the Prime Minister of Bhutan was invited to the swearing-in ceremony of the Modi government along with other leaders of the South Asian Association for Regional Cooperation (SAARC). Modi then decided to make his first overseas trip as prime minister to Bhutan, a step that surprised many political and foreign policy experts in Delhi. While Modi`s visit clearly showed the importance of the neighbors for India, high-level political visits and exchanges between the two countries have since become a strong pillar of India-Bhutan relations. When the Modi government was re-elected to power in May 2019, leaders of BIMSTEC countries, including Bhutan, attended Modi`s oath ceremony. AGREEMENT ON TRADE, COMMERCE AND TRANSIT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE ROYAL GOVERNMENT OF BHUTAN The Government of the Republic of India and the Royal Government of Bhutan, conscious of and willing to strengthen the centuries-old relations between India and Bhutan, convinced of the benefits that their people derive from free trade and trade between the two countries, Development of bilateral trade and cooperation in economic development, Have agreed to promote the above objectives as follows: ARTICLE – I There will be, as before, free trade and commerce between the territories of the Royal Government of Bhutan and the Government of the Republic of India. ARTICLE – II Notwithstanding Article – I, the Royal Government of Bhutan will now be able to impose non-tariff restrictions on imports into Bhutan of certain products of Indian origin necessary for the protection of Bhutan`s industries. However, these restrictions will not be stricter than those applicable to products originating in third countries. ARTICLE – III Notwithstanding Article – I, the governments of both countries may impose the necessary non-tariff restrictions on the importation into their territory of goods originating in third countries. 1 ARTICLE – IV As regards the free movement of goods between the two countries and the possibility of the movement of goods originating in third countries from one to the other, the governments of the two countries shall be consulted each year. . .