• India recognizes the sovereignty, independence and territorial integrity of Bhutan.
  • The treaty also talks about cultural cooperation, sports development, cooperation in science and technology and healthcare.
  • India and Bhutan have agreed to extend national treatment to each other. Indian citizens have same right for employment in Bhutan as Bhutani nationals do in India.
  • India and Bhutan have agreed to have an open border. Under the open border system, citizens of India and Bhutan have a right to move into each other’s territory without a visa.
  • The treaty has a special mention of a clause of extradition.
  • Bhutan has to seek advice of India in matters related to external affairs.
  • In 2007, Bhutan raised this issue with India and advocated the modification of this. India, immediately agreeing to revise the treaty. This instilled confidence in Bhutan about its broad relations with India and made an impression that India is a partner in Bhutani progress.