India, Bhutan partnership getting stronger

September 7, 2025

India and Bhutan have further deepened their long-standing partnership in 2024–2025 through a range of political, economic, and cultural initiatives. The recent visits of Bhutan’s Prime Minister Tshering Tobgay to India and India’s External Affairs Minister S. Jaishankar to Bhutan have underscored the trust, mutual benefit, and shared vision for regional prosperity between the two nations.

Major Economic Commitments and Development Support

India continues to be Bhutan’s largest development partner, pledging ₹10,000 crore for the Himalayan nation’s 13th Five-Year Plan (2024–2029). This assistance covers infrastructure development, high-impact community projects, economic stimulus measures, and programme grants.

Both sides have jointly approved 10 new Project Tied Assistance (PTA) schemes in areas such as healthcare, connectivity, urban infrastructure, and livestock. These build on an existing portfolio of over 61 PTA and 283 community projects, which have been pivotal in Bhutan’s graduation from Least Developed Country (LDC) status and in implementing its 12th and 13th Five-Year Plans.

Boosting Connectivity and Trade Integration

India and Bhutan are advancing cross-border road, rail, and digital links to promote commerce and ease the movement of people. Two new railway projects — Banarhat (West Bengal)–Samtse and Kokrajhar (Assam)–Gelephu — are in the final survey stage, promising major improvements in logistical integration.

Upgrades to immigration and trade facilities, along with new border-linked trade and transit routes, aim to support third-country tourism and enhance regional connectivity.

Expanding Energy Cooperation and Sustainability Initiatives

In the power sector, both countries have reaffirmed their commitment to new hydropower ventures, including fast-tracking the commissioning of the 1,020 MW Punatshangchhu-II project. The partnership is also extending to renewable energy domains such as solar, wind, hydrogen, and green mobility, reflecting a shared vision for sustainable, climate-friendly growth.

Human Capital and Strategic Cooperation

Indian assistance is contributing to Bhutan’s human resource development through support for programmes like GyalSung, the country’s National Service initiative that nurtures youth skills and leadership. Additional scholarships, medical seats, and collaborative education efforts, particularly in STEM fields, are further empowering Bhutanese students.

On the strategic front, India and Bhutan have reaffirmed close coordination on regional and border security, maintaining regular consultations between their national security advisors. Both nations continue to value the “unique civilizational and historical ties of friendship” that act as a stabilising force in the region.