Indian External Affairs Minister S Jaishankar meets King of Bhutan Jigme Khesar Namgyel Wangchuck and Prime Minister Tshering Tobgay in Thimpu. (Img: X)
New Delhi: External Affairs Minister Dr S Jaishankar’s three-day visit to Bhutan has brought a major boost to India Bhutan relations with new energy cooperation, infrastructure projects, digital payment expansion and development initiatives aimed at strengthening the partnership between the two neighbouring countries.
The visit has gained attention as both nations announced a Rs 4000 crore energy credit line, launched key hydropower projects and expanded cooperation in areas directly connected with public welfare, trade and economic growth. The developments are significant as India continues to deepen its engagement with neighbouring countries through infrastructure, technology and development partnerships.
During his September 16-18 visit, Jaishankar held meetings with Bhutan’s King Jigme Khesar Namgyel Wangchuck, Prime Minister Dasho Tshering Tobgay and Foreign Affairs and External Trade Minister Lyonpo D N Dhungyel. The discussions covered energy security, trade, connectivity, education, technology, cultural relations and regional cooperation.
The visit reflected the long-standing friendship between India and Bhutan, a relationship built on mutual trust, strategic cooperation and strong people-to-people connections.
Energy cooperation emerged as the biggest highlight of Jaishankar’s Bhutan visit. India and Bhutan reviewed progress under the Joint Vision on Energy Partnership signed in March 2024 and discussed ongoing cooperation in the hydropower sector.
Both countries highlighted developments in the 1020 MW Punatsangchhu-II Hydroelectric Project, including the signing of its Tariff Protocol. Discussions also covered the resumption of construction work on the 1200 MW Punatsangchhu-I Hydroelectric Project.
A major announcement was the signing of an agreement for a concessional Line of Credit worth Rs 4000 crore for energy projects in Bhutan. The initiative is expected to strengthen clean energy cooperation and encourage greater participation of Indian companies in Bhutan’s hydropower sector.
The two sides also laid the foundation stone for the 500 kW Lunana Hydropower Project in Bhutan’s remote northern region. The project is expected to improve electricity access in high-altitude areas and support last-mile energy connectivity.
India and Bhutan jointly inaugurated the 65-bedded Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar. The healthcare facility is expected to improve access to specialised maternal and child healthcare services in eastern Bhutan, especially for people living away from major urban centres.
The project highlights the focus on creating people-centric infrastructure and improving essential healthcare services under India Bhutan development cooperation.
Infrastructure development remained another key area of cooperation. Jaishankar and Bhutanese Foreign Affairs Minister Lyonpo D N Dhungyel inaugurated the Jaganathan Bridge on the Samdrup Jongkhar-Trashigang Highway in eastern Bhutan. The 80-metre-long bridge, built by Project DANTAK of the Border Roads Organisation, is expected to improve connectivity between important districts of eastern Bhutan.
The improved road network will support emergency services, movement of agricultural products and regional economic activities. Both countries also reviewed progress on proposed cross-border railway links, including the Gelephu-Kokrajhar and Samtse-Banarhat rail projects.
India reaffirmed its support for Bhutan’s ambitious Gelephu Mindfulness City project, which aims to create a new economic and investment hub. The two countries discussed future cooperation through the Joint Working Group on GMC-related matters.
India also confirmed plans to establish an Immigration Check Post at Hatisar in Assam to improve movement of investors and visitors travelling towards Gelephu. The facility is expected to strengthen cross-border mobility and support future economic activities linked with the project.
Digital cooperation received a major boost with the expansion of Unified Payments Interface-based services between India and Bhutan. Under the latest phase, Bhutanese citizens will be able to make digital payments in India using Bhutanese mobile applications.
The move is expected to benefit students, tourists, traders and patients travelling between the two countries by making cross-border payments easier and reducing currency exchange challenges. The expansion marks another step towards digital financial integration between the two neighbouring economies.
India also handed over 54 electric vehicles to the Royal Government of Bhutan as part of green mobility cooperation. The initiative supports Bhutan’s sustainable transport goals under its 13th Five Year Plan for 2024-29. The move strengthens cooperation in electric mobility and clean technology while supporting Bhutan’s focus on environmental sustainability.
A unique grassroots development initiative during the visit was the transfer of 43 purebred Jersey cows from India to Bhutan’s National Cattle Breeding Centre in Bumthang. The dairy development programme aims to improve milk production and support farmers across Bhutan.
The initiative reflects how India Bhutan cooperation extends beyond government agreements to agriculture, rural development and livelihood improvement.
India and Bhutan also discussed the renewal of the Agreement on Trade, Commerce and Transit between the two countries. Bhutan welcomed India’s decision allowing export of 17 species of timber wood from Bhutan to India.
The country also appreciated India’s continued supply of petrol, diesel and LPG despite global supply chain challenges. The operationalisation of the Land Customs Station at Samrang in Assam was also welcomed as a step towards improving border trade, logistics and infrastructure.
Education and human resource development remained an important part of discussions. India and Bhutan agreed to expand scholarship opportunities for Bhutanese students.
Seats under the Indian Council for Cultural Relations scholarship programme will increase from 30 to 60, while Nalanda University scholarship seats will rise from 30 to 55. Both countries also renewed the Nehru-Wangchuck Scholarship Scheme, which enables Bhutanese students to pursue higher education opportunities in India.
India and Bhutan also discussed cooperation in the space sector, including satellite-based applications for monitoring glaciers, forests, floods and agriculture. Bhutan supported India’s candidature for a non-permanent seat at the United Nations Security Council for the 2028-2029 term. India welcomed Bhutan’s ratification of the International Big Cat Alliance Framework Agreement.
The latest developments indicate that India Bhutan relations are moving towards a broader partnership covering energy, technology, infrastructure, education and investment.
Future cooperation is expected to focus on faster implementation of connectivity projects, expansion of digital services, development of Gelephu Mindfulness City and deeper economic engagement between the two countries.
The visit has reinforced the message that India and Bhutan are building a partnership based on trust, development cooperation and shared regional interests.
