New Delhi, Sep 7 India and Bhutan have further strengthened their time-tested partnership in 2024-2025 through a series of significant political, economic and cultural initiatives, during the recent visit of Bhutan’s Prime Minister Tshering Tobgay to India and External Affairs Minister S. Jaishankar, highlighting the bilateral trust, mutual benefit, and a shared vision for regional prosperity.
India remains Bhutan’s largest partner in socio-economic development and has pledged Rs 10,000 crore for the Himalayan country’s 13th Five-Year Plan (2024-2029), covering infrastructure, high-impact community projects, economic stimulus, and programme grants, according to an article in India Narrative.
The two sides jointly approved 10 new Project Tied Assistance (PTA) initiatives spanning healthcare, connectivity, urban infrastructure, and livestock, building on a legacy of over 61 PTA and 283 community projects already underway.
This targeted support has enabled Bhutan’s transition from Least Developed Country (LDC) status and underpinned implementation of the 12th and 13th Five-Year Plans.
The article highlights that India and Bhutan are advancing cross-border road, rail, and digital connectivity to catalyse commerce and people-to-people movement. Two new railway links -- Banarhat (West Bengal)-Samtse and Kokrajhar (Assam)–Gelephu—are under final surveys, promising to transform logistical integration.
Besides, immigration and trade infrastructure upgrades and the opening of new border-connected trade and transit routes aim to facilitate third-country tourism and bolster regional integration.
In the energy sector, both countries reaffirmed their commitment to new hydropower projects, including accelerated timelines for the commissioning of the 1020 MW Punatshangchhu-II plant.
This partnership is being expanded into solar, wind, hydrogen, and green mobility as part of the shared vision for sustainable, climate-friendly growth.
Indian development assistance is also boosting Bhutan’s human capital with projects such as financing for GyalSung, Bhutan’s National Service Program, fostering youth skill-building and leadership. Additional scholarships, medical seats, and collaborative education programmes, especially in STEM, are also helping to empower Bhutanese students, the article further states.
At the strategic level, India and Bhutan have reaffirmed their coordination on regional and border security, with regular consultations between national security advisors. Both countries continue to express satisfaction with the “unique civilizational and historical ties of friendship,” which serve as stabilising factors in the region.
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