CURRENT AFFAIRS

Detailed explanation-1: -Bhutan will receive the largest share of ₹2,400.58 crore out of which ₹ 1,632.24 crore will be “grant” and ₹768.34 crore will be a part of “loan” Bhutan has received the largest share of the amount that the Budget allocated for the Ministry of External Affairs (MEA) under “Grants and Loans to Foreign Governments”.

Detailed explanation-2: -India has increased its monetary support for Bhutan and Maldives in its Budget 2023 announced on Wednesday. The Government of India has allocated Rs 2,400 crore for Bhutan, a slight increase compared to last year of Rs 2,266 crore, and Rs 400 crore to the Maldives.

Detailed explanation-3: -India’s contribution to Bhutan’s socio-economic development began in 1961 with India funding Bhutan’s entire first (1961-1966) and second (1967-1972) Five Year Plans. India is Bhutan’s largest development partner and the highest recipient of India’s overseas aid.

Detailed explanation-4: -The major items of export from Bhutan to India are electricity, ferro-silicon, portland cement, dolomite, carbides of calcium carbides of silicon, cement clinkers, timber and wood products, potatoes, cardamom and fruit products.

Detailed explanation-5: -The bilateral relations between the Himalayan Kingdom of Bhutan and the Republic of India have been traditionally close and both countries share a “special relationship", making Bhutan a protected state, but not a protectorate, of India. India remains influential over Bhutan’s foreign policy, defence and commerce.