[8][9] On 9 August 1949, Bhutan and India had signed the Treaty of Friendship, calling for peace between the two nations and non-interference in each other's internal affairs.

Nehru stated in the Lok Sabha that the defence of the territorial uprightness and frontiers of Bhutan was the responsibility of the Government of India.

[13] The period saw a major increase in India's economic, military and development aid to Bhutan, which had also embarked on a programme of modernisation to bolster its security.

[10] Border demarcation talks with India generally resolved disagreements except for several small sectors, including the middle zone between Sarpang and Geylegphug and the eastern frontier with the Indian state of Arunachal Pradesh.

[10] Although relations remained close and friendly, the Bhutanese government expressed a need to renegotiate parts of the treaty to enhance Bhutan's sovereignty.

[7] India allows 16 entry and exit points for Bhutanese trade with other countries (the only exception being China) and has agreed to develop and import a minimum of 10,000 megawatts of electricity from Bhutan by 2021.

It steadily rose over the years to reach US$985 million (₹61.60 billion) in 2015–16 making Bhutan the largest beneficiary of India's foreign aid.

Bhutan's Prime Minister, Tshering Tobgay, requested an additional aid package from India worth INR 54 billion (US$819 million, as per the exchange rates at the time of signing the deal) for his nation during his visit to New Delhi in August 2013.

[18] The third Prime Minister of Bhutan Lotay Tshering secured an aid package of about Nu.45 billion (about $635 million) for the 12th five-year plan in his first overseas visit to India in November 2018.

[23] While talking about the visit, Modi said that Bhutan was a "natural choice" for his first foreign destination because of the "unique and special relationship" the two countries shared.