In an interview to Bhutan Broadcasting Service on the eve of his two-day visit to the Himalayan state, Mukherjee said India will continue to assist it in its economic development as Bhutan was "special to India".
He said India has given Rs 300 crore to Bhutan last year and another Rs 900 crore has already been disbursed this year for development purposes and more aid will also be disbursed in the course of time.
"India-Bhutan relations is a model relationship amongst neighbours," the President said, adding "mutual trust and confidence have helped build close relations between India and Bhutan."
Mukherjee noted that democracy has taken deep roots in Bhutan and almost 3/4th of Bhutanese student population are studying in India.
Talking about joint developmental projects, the President said these projects, including those in hydroelectric power sector, "have brought us closer".