Prime Minister Narendra Modi on Sunday met Bhutan King Jigme Khesar Namgyel Wangchuk in Thimphu, and reportedly discussed bilateral ties between the two countries.
The Prime Minister also invited the Bhutan King and his wife to visit India.
Later, Modi will inaugurate the new building of the Supreme Court of Bhutan, which has been built with assistance of India.
Prime Minister Tshering Tobgay will host a banquet for Prime Minister Modi at the royal banquet hall this evening.
Prime Minister Modi will address a joint sitting of the 3rd session of the second parliament of Bhutan on the morning of June 16.
He will then unveil the foundation stone of the 600 megawatt Kholongchu Hdropower Project. Construction works for the joint venture project is expected to start between September and October this year.
The King of Bhutan will host a lunch in honour of the prime minister and his delegation before they depart from Thimphu on June 16.
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Earlier today, Modi, who is on a two-day official visit of Bhutan, received a ceremonial guard of honour in Thimphu.
Upon his arrival at the Palace of Bhutan's King Jigme Khesar Namgyel Wangchuk, the Bhutanese people carried out the traditional 'Chibdrel procession'. The procession is hosted specially by the Bhutan King for heads of the states who visit his country.
It is believed that this traditional custom brings good fortune for the country and goodwill with its neighbours.
Modi landed at Paro Airport and was received by Bhutan's Prime Minister Tshering Tobgay, members of his cabinet and senior Bhutanese and Indian Embassy officials.
Modi had earlier described India as a "privileged and leading partner of Bhutan", and added that New Delhi is committed to continuing its unstinted support for Bhutan's socio-economic development.
The Prime Minister also described people-to-people contact as an important aspect of Indo-Bhutanese 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.