India, Bhutan Strengthen Development Cooperation with ₹4,000 Crore LoC

India and Bhutan on Thursday reviewed the progress of their longstanding development partnership during the 5th India-Bhutan Development Cooperation Talks, agreeing to deepen collaboration through a ₹4,000 crore concessional Line of Credit (LoC) and expand cooperation in health, green infrastructure and sustainable mobility.

The high-level talks, co-chaired by Foreign Secretary Vikram Misri and his Bhutanese counterpart Dasho Pema Lektup Dorji, assessed the implementation of India-supported projects under Bhutan's 13th Five-Year Plan. The two sides reviewed projects across infrastructure, connectivity, education, healthcare, capacity building and sustainable development, reaffirming their commitment to strengthening bilateral ties.

A key outcome of the meeting was the signing of 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 financing will support priority development initiatives in Bhutan and help advance projects under its current five-year plan.

Bhutan also acknowledged India's continued financial and technical assistance, describing New Delhi's support as a significant contributor to the country's socio-economic development. India remains Bhutan's largest development partner, backing major infrastructure and capacity-building initiatives over several decades.

The two foreign secretaries also virtually inaugurated the Thimphu Ecological Park and the Olakha Park, developed under the India-funded Green Infrastructure and Open Spaces in Thimphu project to promote sustainable urban development.

Further expanding bilateral cooperation, the two countries signed an MoU on health education and research between the All India Institute of Medical Sciences (AIIMS) and Bhutan's Khesar Gyalpo University of Medical Sciences. India also handed over 45 electric vehicles to the Royal Government of Bhutan to support its green mobility programme.