ies ▁with ▁Nep al ▁and ▁Bh ut an ▁to ▁be ▁central ▁to ▁its ▁" H imal ay an ▁front ier " ▁security ▁policy . ▁India ▁shares ▁a ▁ ▁border ▁with ▁Bh ut an ▁and ▁is ▁its ▁largest ▁trad ing ▁partner , ▁account ing ▁for ▁ 9 8 ▁percent ▁of ▁its ▁exports ▁and ▁ 9 0 ▁percent ▁of ▁its ▁imports . ▁ ▁Military ▁co operation ▁A ▁ 2 , 0 0 0 ▁strong ▁Indian ▁Military ▁Training ▁Team ▁( IM TR AT ) ▁is ▁perman ently ▁based ▁in ▁western ▁Bh ut an ▁to ▁train ▁the ▁Royal ▁Bh ut an ▁Army , ▁while ▁other ▁units ▁regularly ▁co oper ate ▁with ▁the ▁Royal ▁Bh ut an ▁Army . ▁▁ 1 9 4 9 ▁treat y ▁ ▁On ▁August ▁ 8 , ▁ 1 9 4 9 ▁Bh ut an ▁and ▁India ▁signed ▁the ▁Tre aty ▁of ▁Friend ship , ▁calling ▁for ▁peace ▁between ▁the ▁two ▁nations ▁and ▁non - inter ference ▁in ▁each ▁other ' s ▁internal ▁affairs . ▁However , ▁Bh ut an ▁agreed ▁to ▁let ▁India ▁" guide " ▁its ▁foreign ▁policy ▁and ▁both ▁nations ▁would ▁consult ▁each ▁other ▁closely ▁on ▁foreign ▁and ▁defence ▁affairs . ▁The ▁treat y ▁also ▁established ▁free ▁trade ▁and ▁extr ad ition ▁protocol s . ▁Sch ol ars ▁regard ▁the ▁effect ▁of ▁the ▁treat y ▁is ▁to ▁make ▁Bh ut an ▁into ▁a ▁protected ▁state , ▁but ▁not ▁a ▁prote ctor ate , ▁because ▁Bh ut an ▁continues ▁to ▁have ▁the ▁power ▁to ▁conduct ▁its ▁own ▁foreign ▁policy . ▁