Neighbourhood First: India Elevates Bhutan’s Infrastructure with Strategic ₹100 Billion Development Package

Thimhu : Under its steadfast "Neighbourhood First" policy, India has reaffirmed its strong commitment to Bhutan’s socio-economic development. During the 5th India-Bhutan Development Cooperation Talks (Plan Talks) held in Thimphu, Indian Foreign Secretary Vikram Misri and Bhutanese Foreign Secretary Pema Choden (Pema Choden/Pema Lektup Dorji) conducted a comprehensive review of the ongoing projects under Bhutan’s 13th Five-Year Plan (2024–2029).

The flagship development package, valued at ₹100 billion, aims to modernize Bhutan's infrastructure and bolster key sectors. Foreign Secretary Misri, on a two-day official visit, paid a courtesy call on His Majesty the King of Bhutan and held high-level meetings with Prime Minister Dasho Tshering Tobgay and Minister for Foreign Affairs and External Trade, Lyonpo D.N. Dhungyel. The discussions encompassed the entire spectrum of bilateral cooperation—ranging from energy, trade, and investment to cross-border connectivity and cultural ties.

A total of 12 new Project-Tied Assistance (PTA) initiatives worth ₹332 crore were formally approved during the talks. These newly sanctioned projects target critical areas including urban amenities, healthcare, agriculture, infrastructure, and disaster management. With this approval, the total number of sanctioned PTA projects under the 13th Five-Year Plan has reached 82, amounting to ₹6,860 crore.

To further accelerate progress, the Government of India has released key funds:

• ₹1,250 crore for the Economic Stimulus Plan (ESP)
• ₹735.20 crore for High Impact Community Development Projects (HICDP)
• ₹200 crore in Program Grants

Marking a shift toward eco-friendly urban growth, both foreign secretaries virtually inaugurated the Thimphu Ecological Park and Olakha Park, developed under the "Green Infrastructure and Open Space in Thimphu" project. Additionally, 45 electric vehicles were handed over to Bhutan under the "Promoting E-Mobility" project, underscoring a shared vision for sustainable growth.