Royal Monetary Authority of Bhutan: Ann Rep 06-07

2006 saw the signing of an agreement between India and Bhutan, which facilitates the flow of funds and manpower resources from India for the construction of hydropower projects in the kingdom.

The strong performance of the hydropower industry, which was also buoyed by the agreement of export conditions for energy produced by the Tala hydropower project, was the driver behind higher economic growth in 2006.

A revised India-Bhutan Friendship Treaty, signed early in 2007, helped strengthen the co

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