India and Bhutan Strengthen Development Partnership, Approve 12 New Projects Worth Rs 332 Crore Under 13th Five-Year Plan

India and Bhutan have taken stock of their ongoing development partnership under Bhutan's 13th Five-Year Plan (2024–29), approving 12 new Project Tied Assistance (PTA) projects worth ₹332 crore during the fifth India-Bhutan Development Cooperation Talks. The discussions were co-chaired by Indian Foreign Secretary Vikram Misri and his Bhutanese counterpart Pema Lektup Dorji during Misri's two-day visit to Bhutan from July 30 to 31. During the visit, Misri also met Bhutan's King, Prime Minister Tshering Tobgay, and Foreign Affairs and External Trade Minister DN Dhungyel.

According to a joint statement, the two sides reviewed the full spectrum of bilateral cooperation, including development assistance, energy, trade, investment, connectivity, people-to-people exchanges, and regional issues of shared interest. Officials assessed the implementation of India's ₹10,000 crore commitment to support Bhutan's 13th Five-Year Plan. The assistance package includes funding for Project Tied Assistance, High Impact Community Development Projects (HICDP), the Economic Stimulus Programme, and Programme Grants.

With the latest approvals, the number of PTA projects under the current plan has risen to 82, with a combined value of ₹6,860 crore. The newly sanctioned initiatives span key sectors such as infrastructure, healthcare, agriculture, urban development, and disaster management. India has also released ₹1,250 crore for Bhutan's Economic Stimulus Programme, ₹735.20 crore for High Impact Community Development Projects, and ₹200 crore as a Programme Grant. The progress in utilizing these funds was also reviewed during the meeting.

New Delhi reaffirmed its commitment to supporting Bhutan's development priorities, highlighting that the partnership is guided by the shared vision of the Bhutanese King and Prime Minister Narendra Modi while aligning with the aspirations of the Bhutanese government and its people. Bhutan, in turn, expressed appreciation for India's continued assistance, describing it as vital to implementing a wide range of programmes under its current Five-Year Plan.

As part of the visit, the two Foreign Secretaries virtually inaugurated the Thimphu Ecological Park and Olakha Park, developed under the Green Infrastructure and Open Spaces in Thimphu project. They also handed over 45 electric vehicles procured through the "Accelerate e-Mobility Uptake in Bhutan" initiative. The visit also saw the exchange of two significant agreements. The first was an Umbrella Line of Credit Agreement between the Royal Government of Bhutan and the EXIM Bank of India, enabling a concessional ₹4,000 crore Line of Credit for energy-related projects in Bhutan. The second was a Memorandum of Understanding (MoU) between AIIMS New Delhi and Khesar Gyalpo University of Medical Sciences of Bhutan to promote cooperation in medical research, education, and training.

During his audience with the King, Misri briefed him on the outcomes of the Development Cooperation Talks and discussed the expanding scope of India-Bhutan relations. According to the Indian Embassy in Bhutan, the King welcomed the progress achieved, shared updates on the Gelephu Mindfulness City initiative, and reiterated his support for strengthening bilateral ties.

Both countries agreed to hold the next round of India-Bhutan Development Cooperation Talks in New Delhi on a mutually convenient date. The joint statement concluded by describing India and Bhutan's relationship as one built on trust, goodwill, mutual understanding, and strong people-to-people ties, adding that the visit reflected the long-standing tradition of close cooperation between the two neighbours.