New Delhi, Jan 8 (IANS): India and Bhutan's "unique and special" relations are based on shared strategic perceptions, utmost trust, goodwill, transparency and sensitivity to each other's concerns and vital interests, President Pranab Mukherjee has said.

Mukherjee hosted a banquet in the honour of Bhutan's King Jigme Khesar Namgyel Wangchuck, and his wife Jetsun Pema Wangchuck at the Rashtrapati Bhavan Tuesday.

Speaking on the occasion, Mukherjee congratulated the king on the second successful democratic elections held in his country in July 2013 and said: "Bhutan is known the world over for a smooth transition to a democratic constitutional monarchy."

"India attached the highest priority to relations with Bhutan. It would be our endeavour to further strengthen these ties in a spirit of partnership for mutual benefit."

"India has always been happy to contribute to Bhutan's socio-economic progress by sharing its knowledge and experience. We would like to reassure Bhutan of our continued commitment to capacity building in the country," the president said.

In response, the king of Bhutan said India was like a home away from home for him and both the countries had common security interests.

"We are grateful for the generous assistance extended by India for our economic development," said Wangchuk, reiterating his commitment to see the relations between the two countries become stronger.

"India was crucial to Bhutan's plans for the future and requires its support."