NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its nod for the signing of a Memorandum of Understanding (MoU) on the General Supply of Petroleum, Oil, Lubricants (POL), and related products from India to Bhutan, in a significant move aimed at fortifying the economic ties between India and Bhutan.

According to a press release, the memorandum, set to be inked between the Government of India and the Royal Government of Bhutan, seeks to enhance bilateral trade in the hydrocarbon sector, ensuring a secured and long-term supply of petroleum products to Bhutan.

The approval underscores India's commitment to bolstering its commercial relations with Bhutan, regardless of gender, class, or income bias.

One of the primary objectives of the MoU is to foster mutually beneficial economic and commercial linkages between the two nations.

By facilitating the exchange of petroleum products, both India and Bhutan anticipate substantial gains in their respective economies.

Additionally, the MoU aligns with India's vision of an Aatmanirbhar Bharat (self-reliant India), as exports play a pivotal role in realizing this goal.

The MoU will be a strategic fit as Energy Bridge in India's Neighborhood First Policy.

The MoU is expected to provide a framework for cooperation in the hydrocarbon sector, promoting synergy between the energy industries of India and Bhutan.

It will facilitate smoother trade operations, ensuring a steady flow of petroleum products to Bhutan while enhancing India's export portfolio.