Jaishankar’s Bhutan visit strengthens development, energy and connectivity partnership
Thimphu, Sep 18. India and Bhutan reviewed their wide-ranging bilateral partnership and agreed to further deepen cooperation in development, energy, connectivity, digital payments, education and emerging sectors during the course of a three-day visit External Affairs Minister S Jaishankar to the Himalayan kingdom.
Jaishankar, who visited Bhutan from September 16 to 18 at the invitation of Bhutanese Foreign Minister DN Dhungyel, received an audience with King Jigme Khesar Namgyel Wangchuck and called on Prime Minister Tshering Tobgay. He also held discussions with Dhungyel in the historic Bumthang valley.
The two sides reviewed bilateral cooperation as well as regional and international developments of mutual interest. They noted progress in the “special and multi-faceted” partnership under the guidance of the two countries’ leaders. India’s relationship with Bhutan is based on long-standing ties, mutual trust and extensive cooperation across development, energy, connectivity and people-to-people exchanges.
Development projects launched
Jaishankar and Dhungyel jointly inaugurated or launched several development initiatives during the visit, including the 65-bed Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar, the transfer of 43 Jersey cows from India to Bhutan’s National Cattle Breeding Centre in Bumthang and the Jaganathan Bridge on the Samdrup Jongkhar-Trashigang Highway.
India also handed over 54 electric vehicles to the Royal Government of Bhutan, while the two ministers participated in the groundbreaking and foundation stone-laying ceremony for the 500-kW Lunana Hydropower Project.
Jaishankar reaffirmed India’s support for Bhutan’s development priorities, while Bhutan welcomed Indian assistance for programmes under its 13th Five-Year Plan for 2024-29. Development cooperation has remained a major pillar of bilateral relations, with India having doubled its assistance for Bhutan’s current five-year plan.
Hydropower cooperation gets fresh impetus
Energy cooperation figured prominently in the discussions, with the two sides expressing satisfaction over implementation of their Joint Vision on Energy Partnership, signed in March 2024.
They welcomed recent progress, including the inauguration of the 1,020-MW Punatsangchhu-II Hydroelectric Project and the signing of its tariff protocol, as well as the resumption of dam construction at the 1,200-MW Punatsangchhu-I project.
The two countries also welcomed the signing of an agreement for a ₹4,000-crore concessional line of credit for energy projects in Bhutan. India and Bhutan noted the growing participation of Indian companies in Bhutanese hydropower projects, which the two sides said was adding momentum to bilateral energy cooperation.
Focus on Gelephu Mindfulness City
India also reiterated its support for King Jigme Khesar Namgyel Wangchuck’s vision for the Gelephu Mindfulness City (GMC).
The two sides noted the work of their Joint Working Group on GMC and agreed to continue efforts to expand cooperation on issues linked to the project.
India reaffirmed its commitment to establish an Immigration Check Post at Hatisar in Assam, aimed at facilitating the movement of investors and visitors to Gelephu. Bhutan, meanwhile, thanked India for deciding to establish a special temporary immigration facility at Hatisar from November 1, 2026, to facilitate entry and exit of third-country nationals associated with Project 108 Chortens/Stupas.
Trade, connectivity and digital payments
The two sides also discussed the ongoing negotiations for renewal of the Agreement on Trade, Commerce and Transit. Bhutan welcomed India’s recent notification allowing the export of 17 species of timber from Bhutan to India and thanked New Delhi for maintaining uninterrupted supplies of petrol, diesel and LPG amid global supply-chain disruptions.
India and Bhutan welcomed the operationalisation of a new Land Customs Station at Samrang in Assam, aimed at strengthening cross-border connectivity and infrastructure. They also reviewed progress on the proposed Gelephu-Kokrajhar and Samtse-Banarhat cross-border railway links.
The ministers welcomed the operationalisation of a UPI-based payment facility, allowing Bhutanese nationals to make digital payments in India through Bhutanese mobile applications. The initiative adds another layer to the financial connectivity between the two countries, which have already developed close digital-payment links. Bhutan was among the first countries outside India to adopt UPI-linked payment systems.
Space, education and people-to-people ties
The two sides also reviewed cooperation in the space sector and encouraged greater use of satellite data for applications including glacier and forest monitoring, flood management and agriculture.
Education and capacity building featured prominently in the discussions. India and Bhutan endorsed continued activities of the India-Bhutan Foundation and appreciated the contribution of Indian teachers and nurses to Bhutan’s education and healthcare sectors.
Under the latest initiatives, the number of seats for Bhutanese students under Indian Council for Cultural Relations scholarships will be doubled from 30 to 60, while seats under the Nalanda University Scholarship Scheme will rise from 30 to 55. The two countries will also renew their memorandum of understanding on the Nehru-Wangchuck Scholarship.
Bhutan backs India’s UNSC bid
India thanked Bhutan for supporting its candidature for a non-permanent seat on the UN Security Council for the 2028-29 term.
New Delhi also welcomed Bhutan’s ratification of the Framework Agreement of the International Big Cat Alliance, while the two ministers exchanged views on regional and global developments.
The visit reaffirmed the close institutional and people-to-people ties between the two neighbours and continued the longstanding pattern of high-level engagement between India and Bhutan. Jaishankar invited Bhutanese Foreign Minister DN Dhungyel to visit India at a mutually convenient date.
