India and Bhutan have reaffirmed their deep-rooted partnership by reviewing and advancing their development cooperation during a high-level bilateral meeting held in Thimphu this week. A total of 10 new projects, with a combined value of ₹1,113 crore, were discussed and approved across key sectors including healthcare, connectivity, and urban infrastructure.
The meeting was co-chaired by senior officials from Bhutan’s Ministry of Finance and India’s Ministry of External Affairs, with both sides underlining their commitment to timely and effective implementation of developmental assistance as part of India’s ongoing support under Bhutan’s 13th Five Year Plan.
Focus Areas of Cooperation
The 10 projects approved during the review cover critical areas that directly impact Bhutan’s socio-economic development.
1. Healthcare:
New health infrastructure projects, including the construction of district hospitals and upgrading medical facilities in remote regions, will improve access to quality healthcare and emergency services.
2. Connectivity:
Several initiatives aim at enhancing both road and digital connectivity within Bhutan. These include improvements in national highways, bridges, and rural access roads, ensuring better integration between urban centers and rural communities.
3. Urban Infrastructure:
Projects related to drinking water, sanitation, and public housing in cities like Thimphu and Phuentsholing are also being taken up. These will support Bhutan’s sustainable urbanization goals and climate-resilient development.
A Model Partnership
India’s development cooperation with Bhutan is one of its most enduring and comprehensive bilateral assistance programs, reflecting the deep trust and cultural ties shared by the two Himalayan neighbours.
India remains Bhutan’s largest development partner. Over the years, India has funded hydropower projects, schools, hospitals, capacity-building initiatives, and helped Bhutan achieve significant milestones in education, health, and rural development.
The current commitment of ₹1,113 crore comes under the allocated Indian grant assistance for Bhutan’s 13th Five Year Plan, which runs from 2024 to 2029. India has pledged a total of ₹10,000 crore under the plan.
Diplomatic Significance
The review meeting took place in the backdrop of growing regional interest in Bhutan’s geostrategic location and its efforts to modernize its economy while maintaining its unique ecological and cultural identity. India has emphasized that its support to Bhutan is based on mutual trust, sovereignty, and partnership-driven development.
Both sides expressed satisfaction over the pace of implementation of previously agreed projects and emphasized close coordination between implementing agencies to ensure the smooth execution of the new projects.
Conclusion
The India-Bhutan development partnership remains a benchmark for effective and transparent bilateral cooperation in South Asia. With the approval of these ₹1,113 crore worth of projects, both countries have taken another meaningful step toward inclusive growth, shared prosperity, and strategic collaboration in a changing regional context.
