The revised agreement, signed by Bhutan's26-year-old King Jigme Khesar Namgyel Wangchuk and Indian External Affairs Minister Pranab Mukherjee at the Hyderabad House here, ended India's 57 years of direct dominance in guiding Thimphu's foreign and defence policies.

The signing of the treaty also marked the young monarch's debut on the world stage after his 51-year-old father Jigme Singye Wangchuk abdicated in favour of his son and promised to usher in electoral democracy under a constitutional monarchy.

The revised agreement between the two countries, which came after talks between Jigme Khesar Namgyel Wangchuk and Indian Prime Minister Manmohan Singh, removed an Article of the 1949 treaty, which says Bhutan will be guided by the advice of the government of India regarding its external relations.

The updated agreement speaks of cooperation in Bhutan's conduct of its foreign policy and a consultative mechanism will be set up for this.

The Article 6 of the previous treaty had allowed Bhutan to import arms, ammunitions, machines and war materials or stores for its welfare but with India's "assistance and approval." But the revised agreement allows Bhutan to import non-lethal military equipment from other countries without India's consent.