Narendra Modi arrives to a grand welcome, inaugurates Supreme Court of Bhutan

Two types of bilateral issues will dominate when Modi engages with his Bhutanese counterpart.

The NSA is invariably part of the PM’s official delegation during his foreign visits.

There have been intelligence reports about anti-Indian insurgent outfits, active in the northeast which are using Bhutanese territory once again for carrying out operations against India.

India shares slightly less than 700-km-long border with Bhutan. It is obvious for India to keep a keen eye on whatever is happening between Bhutan and China.

Read: Narendra Modi's Bhutan visit first step to reassert regional sway

Over the years, India and Bhutan have been actively engaged in areas of communication, trade, communication, technology, human resource and tourism.

Hydropower sector is a deep focus area for the two sides. Electricity also constitutes bulk of Bhutan’s export to India. Bilateral trade is pegged at a little over $1.1 billion.

India has allocated an assistance package of Rs 4500 crore to Bhutan for its 11th Five Year Plan (2013-2018).

In his pre-departure statement, PM Modi said relations with Bhutan would be a key foreign policy priority of his government.

"I am looking forward to my first-ever visit to Bhutan and to nurturing and further strengthening India's special relations with Bhutan", said the PM.

He is undertaking the trip at the invitation of King Jigme Khesar Namgyel Wangchuk and Prime Minister Tshering Tobgay.

(Modi recieves Guard of Honour Photo: ANI/Twitter)

"I travel to Bhutan with immense happiness and a strong desire to further strengthen our already strong bond," he said.

He explained why he chose Bhutan as the country of his first foreign visit, three weeks after assuming charge.

"Bound by common interests and shared prosperity, India and Bhutan enjoy a unique and special relationship which has been forged by ties of geography, history and culture. Therefore, Bhutan as the destination for my first visit abroad as Prime Minister is a natural choice," the PM said.

(1/2) India-Bhutan a testimony of bilateral relations, so much so that it seems almost rhetoric: Kinley Dorji pic.twitter.com/Pve8Qu4ZLE

— ANI (@ANI_news) June 15, 2014

"I will review with the Bhutanese leadership our development cooperation programme to make it even more effective and responsive to the changing aspirations of the people of Bhutan," PM Modi said.

"Bhutan and India share a very special relationship that has stood the test of time," the PM said.

He said Bhutan's peaceful and smooth transition to a democratic constitutional monarchy has been a success story.

"Its orderly conduct of elections is testimony to the consolidation of its democracy, in accordance with the wise vision of their Majesties."

During the visit, PM Modi will address the joint session of the parliament of Bhutan. He will also inaugurate one of India's assistance projects -- the building of the Supreme Court of Bhutan.

"The government of India has been a privileged and leading partner of Bhutan in its socio-economic development. We rejoice in Bhutan's remarkable economic growth and its progress and prosperity. We are committed to continuing our unstinted support to Bhutan in its development efforts," he said in the statement.

He said hydropower cooperation with Bhutan "is a classic example of win-win cooperation and a model for the entire region".

During the visit, he will lay the foundation stone of the 600 MW Kholongchu hydropower project.

"People-to-people contact is an important aspect of our bilateral relations. I intend to discuss with the Bhutanese leadership how to further strengthen these contacts between our countries, particularly among the youth. In this regard, the role of educational links will be very important," he said.

Also Read: Bhutan is a natural choice for my first foreign visit: says PM Narendra Modi