India Approves 12 Bhutan Projects, Extends ₹4,000 Crore Credit Line

India and Bhutan have reaffirmed their close development partnership by unveiling a fresh package of financial assistance, infrastructure projects and healthcare collaboration during the 5th India-Bhutan Development Cooperation Talks, co-chaired by Foreign Secretary Vikram Misri and his Bhutanese counterpart Dasho Pema Lektup Dorji. The meeting reviewed the progress of India-backed initiatives under Bhutan's 13th Five-Year Plan (2024–29) while charting the next phase of bilateral cooperation.

The two sides assessed the implementation of India-supported projects spanning infrastructure, healthcare, agriculture, urban development, disaster resilience and community welfare. Bhutan expressed appreciation for India's continued financial and technical assistance, reaffirming New Delhi's role as its largest and most trusted development partner.

A major outcome of the talks was the approval of 12 new Project Tied Assistance (PTA) projects worth ₹332 crore (Nu 3.32 billion). The additions raise the total number of PTA projects approved under the current Five-Year Plan to 82, taking India's overall commitment to ₹6,860 crore (Nu 68.6 billion). The projects are aimed at strengthening public infrastructure, healthcare services, agriculture, urban amenities and disaster preparedness across Bhutan.

The two countries also exchanged an agreement for a ₹4,000 crore (Nu 40 billion) concessional Line of Credit between the Export-Import Bank of India and Bhutan's Ministry of Finance. The funding will support priority infrastructure and economic development projects aligned with Bhutan's national growth agenda.

During the review, officials assessed the utilisation of India's ongoing assistance, including ₹1,250 crore for Bhutan's Economic Stimulus Programme, ₹735.2 crore for High Impact Community Development Projects, and ₹200 crore in programme grants, with emphasis on timely implementation.

In another significant step, AIIMS and Bhutan's Khesar Gyalpo University of Medical Sciences (KGUMSB) signed a Memorandum of Understanding to deepen cooperation in medical education, clinical research, faculty and student exchanges, specialised training and healthcare capacity building.

Highlighting the growing focus on sustainability, the two Foreign Secretaries virtually inaugurated the Thimphu Ecological Park and Olakha Park, developed with Indian assistance under the Green Infrastructure and Open Spaces in Thimphu initiative. India also handed over 45 electric vehicles to Bhutan, supporting the country's transition towards cleaner mobility and lower carbon emissions.

The discussions were held as part of the implementation of Bhutan's 13th Five-Year Plan, which prioritises employment generation, sustainable economic growth, climate resilience, digital governance, healthcare and infrastructure development. India has remained Bhutan's principal development partner since the kingdom launched its first Five-Year Plan in 1961, and the latest agreements further reinforce the two neighbours' unique and time-tested strategic partnership.