India Reaffirms Unwavering Support to Bhutan's 13th Five-Year Plan

NEW DELHI, Nov 12 - India has reiterated its steadfast commitment to Bhutan's 13th Five-Year Plan, encompassing the Economic Stimulus Programme, underscoring its dedication to assisting the Himalayan Kingdom in achieving its key development priorities and fostering sustainable growth across various sectors. This commitment was reaffirmed as Prime Minister Narendra Modi concluded his two-day state visit to Bhutan.

During his visit, Prime Minister Modi engaged in discussions with Bhutan's former King Jigme Singye Wangchuck and joined the Bhutanese leadership in attending the Kalachakra initiation ceremony, a part of the Global Peace Prayer Festival.

The Bhutanese side expressed gratitude for India's assistance with its 13th Five-Year Plan, acknowledging the numerous projects underway and their significant contribution to the country's development. India has pledged ₹10,000 crore towards Bhutan's 13th Five Year Plan. This support encompasses Project Tied Assistance (PTA) projects, High Impact Community Development Projects (HICDP), support for the Economic Stimulus Programme (ESP), and budgetary support in the form of Programme Grant.

Prime Minister Modi conveyed the Indian government's full support for the Gelephu Mindfulness City vision. To facilitate the movement of investors and visitors to Gelephu, Modi announced the establishment of an Immigration Check Post at Hatisar, Assam. King Jigme Khesar Namgyel Wangchuck expressed his appreciation for India's support in constructing Gyalsung academies.

Both leaders welcomed the progress made regarding the resumption of work on the 1200 MW Punatsangchhu-I hydroelectric project and pledged to expedite its completion. Once finished, it will be the largest hydroelectric project jointly developed by the two countries. They also acknowledged the active involvement of Indian companies in Bhutan's hydropower projects. Furthermore, Bhutan expressed gratitude for India's announcement of a concessional Line of Credit of Rs 40 billion to fund energy projects in Bhutan.

The two sides emphasized the importance of enhancing cross-border connectivity and improving border infrastructure, including establishing Integrated Check Posts. In September 2025, both countries signed a Memorandum of Understanding (MoU) for cross-border rail links connecting Gelephu-Kokrajhar and Samtse-Banarhat. A Project Steering Committee has since been established to oversee the project's implementation.

Bhutan also expressed appreciation for India's efforts to ensure an uninterrupted supply of essential commodities and fertilizers. Both sides welcomed the arrival of the first consignment of fertilizers from India under this arrangement.

In addition to developmental assistance, India and Bhutan have a strong economic partnership. The India-Bhutan Agreement on Trade, Commerce, and Transit, initially signed in 1972 and revised in 2016, has established a free trade regime between the two countries.

The enduring friendship between India and Bhutan is built on mutual trust, shared spiritual heritage, and developmental cooperation. This relationship exemplifies India's "Neighborhood First" and "Act East" policies, promoting mutual trust, respect, and shared prosperity in South Asia.