India and Bhutan’s partnership has entered a new phase with several major agreements. Both countries are focusing on development, connectivity, digital payments and energy cooperation.
These initiatives aim to strengthen economic ties and improve daily life for people. Moreover, the agreements create a roadmap for future cooperation between New Delhi and Thimphu.
Energy projects and connectivity take centre stage
India announced a ₹4,000 crore concessional line of credit for Bhutan’s energy projects. Additionally, both countries launched the foundation of the 500 MW Lunana hydropower project.
India and Bhutan already work on major projects like Punatsangchhu-I and Punatsangchhu-II. Furthermore, progress in these projects can benefit both nations.
Meanwhile, both countries are improving connectivity to boost trade and tourism. Railway links from Gelephu-Kokrajhar to Samtse-Banarhat are moving ahead.
Assam’s Hatisar will receive a new immigration check post. This facility will help investors visiting Gelephu.
Besides this, a new land customs station has started operations in Assam’s Samarang. These steps will make movement between both countries easier.
UPI access and trade support strengthen partnership
Digital payments have reached Bhutan through new cooperation measures. Bhutanese citizens can now use mobile applications for UPI payments in India.
As a result, tourists and students from Bhutan can avoid carrying cash during India visits. The move will make payments more convenient.
India has also increased ICCR scholarship seats from 30 to 60. Similarly, Nalanda University seats for Bhutanese students have increased from 30 to 55.
Furthermore, both nations approved steps to improve trade. India allowed exports of 17 special wood categories from Bhutan.
Despite global supply chain challenges, India assured continuous supplies of petrol, diesel and LPG to Bhutan. This will support Bhutan’s energy requirements.
Meanwhile, Bhutan supported India’s candidature for a non-permanent United Nations Security Council membership for 2028-29.
Through these decisions, India and Bhutan have expanded cooperation across multiple sectors. The partnership now focuses on energy, technology, trade and stronger people-to-people connections.
