India-Bhutan relations India-Bhutan relations

India-Bhutan relations

Embassy of India
Thimphu

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India-Bhutan Relations

  1. Diplomatic relations between India and Bhutan were established in 1968. The basic framework of India - Bhutan relations has been the Treaty of Friendship and Cooperation signed in 1949 between the two countries, which was revised in February 2007. The special ties of friendship, unique bilateral relations and close bonds between the people of the two countries have maintained steady growth and strengthening all along the last six decades.
  2. India-Bhutan relations are marked by a tradition of regular political and official exchanges between the two countries. Hon’ble Prime Minister Shri Narendra Modi visited Bhutan on his first overseas visit after assuming the responsibility in June 2014. PM Shri Modi undertook a State visit to Bhutan in August 2019, after assuming office for the second term.
  1. His Majesty Jigme Khesar Namgyel Wangchuck, The King of Bhutan paid an official visit to India from 05-06 December 2024 during which he met Prime Minister and External Affairs Minister. In February 2025, His Majesty paid a special visit to India to attend the Maha Kumbh Mela at Prayagraj. In April 2025, His Majesty visited Assam to view the facilities at the Inland Waterways Terminal (IWT) and the Multi Modal Logistics Park (MMLP) at Jogighopa. Earlier in April 2023, His Majesty the King visited Delhi and met the President of India, Prime Minister and External Affairs Minister; a Joint Statement titled “A Framework for Expanded India-Bhutan Partnership” was issued, which reaffirmed the strength of the unique ties while outlining concrete areas to advance the India-Bhutan partnership. In November 2023, His Majesty paid an official visit to India, where he made his first official visit to the states of Assam and Maharashtra to expand ties of friendship and cooperation.
  1. At the invitation of His Majesty Jigme Khesar Namgyel Wangchuck, the King of Bhutan, Hon’ble Prime Minister of India Shri Narendra Modi undertook a two-day State Visit to Bhutan from 11–12 November 2025. During the visit, Prime Minister Modi joined the people of Bhutan in marking the 70th Birth Anniversary of His Majesty the Fourth Druk Gyalpo and took part in the Global Peace Prayer Festival. His Majesty The King and Prime Minister Modi jointly inaugurated the Punatsangchhu-II Hydroelectric Project. Other important outcomes in the fields of energy and health were also concluded during the visit.
  1. Prime Minister Shri Narendra Modi paid a State Visit to Bhutan in March 2024 when he received the Order of the Druk Gyalpo, Bhutan’s highest civilian decoration, from His Majesty The King, in recognition of PM’s outstanding contribution to strengthening the India-Bhutan friendship. PM Modi is the first and only foreign national to be given this prestigious award.
  1. The Chief Abbot of Bhutan, His Holiness Trulku Jigme Choedra, visited India in September 2025 to preside over the consecration ceremony of the Royal Bhutan Temple at Rajgir, Bihar, which also saw participation of the Prime Minister of Bhutan, Dasho Tshering Tobgay. During the visit, PM Dasho Tobgay also visited Ayodhya and New Delhi.
  1. PM of Bhutan Dasho Tobgay paid an official visit to India in March 2024, his first overseas visit after assuming office in January 2024. PM Dasho Tobgay called on the President of India Smt. Droupadi Murmu and held discussions with PM Modi, on the full spectrum of bilateral relations. PM Dasho Tobgay visited New Delhi in June 2024, as an honoured guest for the swearing-in ceremony of PM Modi and his Council of Ministers. In February 2025, PM Dasho Tobgay visited New Delhi as Guest of Honour and the keynote speaker at the SOUL Leadership Conclave.
  1. The Chief Justice of India, Shri B.R. Gavai, paid a visit to Bhutan from 22-26 October 2025 to enhance exchanges and cooperation between the judiciaries of India and Bhutan. He met the Chief Justice of Bhutan, the Prime Minister of Bhutanand had an audience with His Majesty the King. The two sides considered cooperation in applications of digital technology, sharing judicial practices and legal education.
  1. External Affairs Minister Dr S. Jaishankar, visited Bhutan in June 2019, his first overseas visit after assuming office. External Affairs Minister visited Bhutan again in April 2022. Foreign Secretary of India Shri Vikram Misri visited Bhutan in July 2024, his first overseas visit post assuming responsibility as Foreign Secretary, when he co-chaired the India-Bhutan Development Cooperation Talks (“Plan Talks”). Foreign Secretary Shri Misri visited Bhutan in October 2025 for bilateral talks.
  2. Chief Minister of Assam, Dr. Himanta Biswa Sarma visited Bhutan from 16-19 December 2024, at the invitation of the Royal Government of Bhutan. During the visit, he received an audience with Their Majesties, The King and Queen of Bhutan. He also called on the PM of Bhutan.
  1. Regular Ministerial meetings have enabled the two sides to further strengthen bilateral cooperation in all sectors. Lyonpo Gem Tshering, Minister of Energy and Natural Resoruces visited India in July 2024, October 2024 and November 2025 in connection with cooperation on power and energy sectors. Lyonpo D.N. Dhungyel, Minister of Foreign Affairs and External Trade visited New Delhi in February 2024 and March 2025 for the Raisina Dialogue, in May 2025 for the World Audio Visual & Entertainment Summit in Mumbai, and in July 2024 to participate in the 2nd BIMSTEC Foreign Ministers’ Retreat in New Delhi. Lyonpo Chandra Bahadur Gurung, Minister of Infrastructure and Transport, visited New Delhi in September 2024 for the 2nd Asia-Pacific Ministerial Conference on Civil Aviation. Lyonpo Younten Phuntsho, Minister of Agriculture and Livestock, visited New Delhi in September 2024 for the 3rd World Food India event held in New Delhi and in February 2025 for the Bengal Global Business Forum in Kolkata and at Advantage Assam 2.0 in Guwahati. Lyonpo Lekey Dorji, Minister of Finance, visited New Delhi for the 3rd Kautilya Economic Conclave (October 2024) and for the Global Economic Policy Forum (December 2024). Lyonpo Tandin Wangchuk, Minister of Health, visited New Delhi for the 77th session of the WHO Regional Committee for South East Asia (October 2024). Lyonpo Namgyal Dorji, Minister of Industry, Employment and Commerce, visited New Delhi for the CII Partnership Summit (December 2024), for the Bhutan Investment Roadshow (January 2025), and for the inauguration of Jogigopha Multi-Modal Logistics Park (February 2025) in Assam.

Developmental Partnership

  1. Since Bhutan’s first Five Year Plan in 1961, India has closely partnered with Bhutan in its socio-economic development in line with the priorities of the people and Government of Bhutan. India’s development assistance to Bhutan is coordinated under the overarching mechanism of Bilateral Development Cooperation Talks or Annual “Plan Talks” wherein the components of development assistance and modalities are decided jointly by the two sides.
  1. For the 12th Five Year Plan (FYP) of the Royal Government of Bhutan, India extended an assistance package of INR 5000 Crore. 83 Project Tied Assistance Projects and 524 High Impact Community Development Projects in Bhutan were implemented.
  1. The Government of India has committed INR 10,000 Crore for Bhutan’s 13th FYP period (July 2024 – June 2029). 71 Project Tied Assistance projects, amounting to about INR 6,650 Crore and 572 High Impact Community Development Projects amounting to about INR 846 Crore have been agreed between the two sides and are under implementation. Further, INR 1000 Crore, out of a commitment of INR 1500 Crore, has been disbursed to Bhutan for implementation of its Economic Stimulus Programme (ESP).
  1. The scope of the development projects span across sectors such as infrastructure development, roads, digital connectivity, energy, agriculture, ICT, health, education, human resource development and urban development. The High-Impact Community Development Projects are implemented at the level of communities with a short gestation period, and cover areas like drinking water supply networks, irrigation canals, building farm roads, basic health units and other rural infrastructure. Our development partnership also includes a Programme Grant component, which is a direct budgetary support to the Royal Government of Bhutan.

Energy cooperation

  1. The two countries enjoy long-standing and mutually-beneficial cooperation in the hydropower sector. The Government of India has so far cooperated with RGoB for the construction of five major hydro-electric projects (HEPs) in Bhutan totaling 2986 MW, including 336 MW Chukha HEP (1988), 60 MW Kurichhu HEP (2001), 1020 MW Tala HEP (2007-08), 720 MW Mangdechhu HEP (2019) and 1020 MW Punatsangchhu-II HEP (2024). The Mangdechhu Project was awarded the prestigious Brunel Medel for Excellence in Engineering by Institute of Civil Engineers, London in 2020. Power Secretary Shri Pankaj Aggarwal visited Bhutan in January 2024 and held talks with his counterpart to comprehensively review different aspects of India-Bhutan energy partnership.
  1. Electricity trade enables India and Bhutan to cooperate to cater to their energy needs. In September 2023, India gave approval for 64 MW Basochhu HEP to trade its energy in Indian Energy Exchange (IEX). Subsequently, GoI gave approval for Nikachhu and Suchhu HEPs to also trade their energy in Indian Energy Exchanges. Chairperson, Central Electricity Authority (CEA) visited Bhutan in June 2025 and held talks with his counterpart to review aspects of India-Bhutan electricity trade.
  1. In March 2024, India and Bhutan agreed on a Joint Vision Document on Energy Partnership, under which the two sides agreed to enhance their partnership, and develop new energy projects in the fields of hydro-power, solar and green hydrogen, including through the participation of Indian entities as strategic partners. In this Direction, the Confederation of Indian Industry and Druk Green Power Corporation, organized an “India-Bhutan Renewable Energy Roundtable” in Thimphu on 28 October 2024, with participation of experts from the government and private sector of both countries. Over the last year and a half, several Indian power sector companies are engaged with Bhutan to develop power generation, financing and engage in power trade, including the 600 MW Khorlochhu HEP under construction in Bhutan.

Commerce and Trade

  1. India has consistently been Bhutan’s top trading partner- both as an import source and as an export destination. Since 2014, India’s trade with Bhutan has nearly quadrupled from USD 484 million in 2014-15 to USD 1744.44 million in 2024-25, accounting for about 80% of Bhutan’s overall trade. The 2016 India-Bhutan Agreement on Trade, Commerce and Transit, establishes a free trade regime between the two countries and provides Bhutan duty free transit of goods to/from third countries. Ten (10) entry/exit points, i.e. Land Customs Stations (LCS), on the India-Bhutan border have been notified for trade between the two countries, out of which almost 70% of Bhutan’s total trade takes place through LCS Jaigaon-Phuentsholing.
  1. India’s exports to Bhutan, amounting to INR 9,538.00 Crore in 2024, comprised primarily of petroleum fuel, rice, wood charcoal, coke and semi-coke, ferrous products (obtained by direct reduction of iron ore), maize, soybean oil, automobiles, and smartphones. India’s imports from Bhutan, amounting to INR 3,131.10 Crore in 2024, mainly comprised of ferro-silicon, wood products, agricultural produce, dolomite, gypsum, etc.
  1. Commerce Secretary (CS) Shri Sunil Barthwal co-chaired with Dasho Tashi Wangmo, Secretary, Ministry of Industry, Commerce and Employment the India-Bhutan Commerce Secretary Level Meeting (CSLM) in Thimphu on 27-28 September 2024. Key decisions taken during the CSLM includes notification of LCS Hatisar and LCS Darranga, as additional routes for import of areca nut in India from Bhutan; notification of LCS Darranga as additional Point of Entry for import of food items in India from Bhutan; in-principle agreement to notify LCS at Samrang following upgradation of necessary ​infrastructure; establishment of border haats along India-Bhutan border; inclusion of three additional species of timber for import from Bhutan to India; and deployment of personnel for Phyto Quarantine Inspection Services (PQIS) at LCS Darranga. Sixth meeting of the Joint Group on Customs was held in Thimphu on 24-25 April 2025 to discuss streamlining of customs matters between the two sides.
  1. India remains the leading source of investments in Bhutan, accounting for over 55% of the country’s total Foreign Direct Investment (FDI). Currently, there are about 30 Indian FDI companies in Bhutan in various sectors - banking, manufacturing, electricity generation, agri/food processing, ITES, pharmaceuticals, hospitality, and education. Druk PNB Bank in Bhutan includes a share of 51% from Punjab National Bank, India and Bank of Bhutan has 20% equity participation from the State Bank of India.

Technology and Emerging Areas

  1. Space cooperation is a new area of bilateral cooperation, where the Ground Earth Station of the South Asia Satellite in Thimphu was inaugurated in August 2019. The two sides collaborated on the first jointly developed India-Bhutan satellite, which was launched on 26 November 2022 from Sriharikota, India. Chairman, Indian Space Research Organisation (ISRO). Shri S. Somanath visited Bhutan in March 2023 to inaugurate the ground earth station for the India-Bhutan Satellite.
  1. India and Bhutan signed a Joint Plan of Action on Space Cooperation in March 2024. Under the JPoA, India has allocated additional 16 MHz on the second transponder of the South Asia Satellite for use by Bhutan. The first meeting of the Joint Working Group under the Action Plan took place in Thimphu on 06 September 2024. Several capacity building initiatives and training programs for Bhutan’s government officials, engineers and students have been organised at ISRO facilities in India.
  1. Fin-tech is another domain of collaboration between India and Bhutan. The RuPay Card was launched in Bhutan in two phases - Phase I was launched in 2019, to enable acceptance of payments in Bhutan using RuPay cards issued by Indian banks. Phase-II was launched in 2020, to enable acceptance of payments in India using RuPay cards issued by Bhutanese banks, thereby enabling the full inter-operability of the flagship project. In 2021, India’s Bharat Interface for Money (BHIM) application was launched in Bhutan with the objective of promoting cashless payments between the two nations. Bhutan now accepts payments from Indian visitors through major UPI apps - BHIM, PhonePe, Paytm, and Google Pay - using the existing National QR system. Work on Phase-II of the UPI is ongoing, which will enable Bhutanese visitors to India to make payments using local mobile applications by scanning QR codes.
  1. The first India-Bhutan JWG on Environment was chaired by Ms Leena Nandan, Secretary Ministry of Environment, Forests and Climate Change, and Dasho Tashi Wangmo, Secretary, Ministry of Industry, Commerce and Employment in Thimphu on 21 October 2024. Both sides held wide ranging discussions on expanding bilateral cooperation in the environment and climate change, creating institutional linkages, and covering areas like bio-diversity, waste management and training of human resources.
  1. The integration of Bhutan’s Druk Research and Education Network with India’s National Knowledge Network towards e-Learning, creates an information highway between the universities, research institutions, libraries, health-care and agricultural institutions of the two nations. The 5 Gbps connectivity link is being used by universities, colleges and hospitals in Bhutan.

Financing

  1. Currency Swap Facility: Under the SAARC currency swap arrangement, Reserve Bank of India (RBI) signed USD 200 million INR equivalent arrangement with Bhutan’s Royal Monetary Authority (RMA) in November 2022. RBI has started a new Framework on Currency Swap Arrangement (FCSA) 2024-27 for SAARC countries and under the new framework, Bhutan has availed INR 1500 Crore (15 Billion) under the INR window for a period of 6 months.
  1. Standby Credit Facility: On the request of Bhutan, GoI has agreed to reduce the rate of interest on two Standby Credit Facilities of INR 300 Crore (3 Billion) and 400 Crore (4 Billion) from 5% to 2.5% w.e.f 01 July 2022. GOI has recently extended an additional Standby Credit Facility of INR 300 Crore (3 Billion) to Bhutan, which has been availed by Bhutan (through RMA) since 29 November 2023.

Cross Border Infrastructure and Connectivity Projects

  1. Enhancing cross-border connectivity and infrastructure is a subject of regular discussions and efforts between the Government of India and the Royal Government of Bhutan. Last round of Secretary-level discussions on border management was held in Thimphu on 16-17 October 2025, where further efforts on improving border facilities, security and related issues where discussed.
  1. Following the high level discussions on establishing railway linkages, an Inter-Governmental MoU for the Establishment of Railway Links between India and Bhutan has been signed on September 2025. The MoU envisages establishment of (i) Kokrajhar-Gelephu (approximately 70 kilometers) and (ii) Banarhat-Samtse rail links (approximately 20 kilometers) at a total cost of INR/Nu. 4,033 crores (40.33 billion). The new railway links will provide rail connectivity to the economy of Bhutan and its people for better access to India and beyond.
  1. To facilitate the movement of people, including third country nationals, between India and Bhutan, an Immigration Check Post was inaugurated at Darranga, Assam on November 2024. Development of Integrated Check Posts, further trading routes, immigration check points and related subjects remain part of regular discussions between the two countries.

Partnership on Gyalsung - National Service Program

  1. Gyalsung is an initiative of His Majesty the King of Bhutan, seeks to enable the youth to equip themselves with critical skills and to contribute in nation-building efforts. India has extended a grant assistance of INR 200 Crore to the Project. On 20 January 2024, the Government of India and the Royal Government of Bhutan signed a concessionary loan of INR 1500 Crore to build the infrastructure for the Gyalsung academies.

Education and Capacity Building

  1. Education is a strong pillar of cooperation between India and Bhutan through scholarships, support to educational facilities, training opportunities and other institutional engagements. In addition, many Bhutanese youth also enroll as self-financed students in Indian universities. The Scholarship Schemes include the Ambassador’s Scholarship, Nehru Wangchuck Scholarship, project assistance based Undergraduate Scholarship, Nalanda University Scholarship, ICCR Undergraduate Engineering scholarships, India-Bhutan Friendship Scholarship at IIT Kanpur, among others. In 2024-25, around 1500 Bhutanese students studying in Indian colleges and institutes received the Ambassador’s Scholarship apart from a few hundred other scholarships. In recent years, 50 teachers from India in the disciplines of Science, Technology, Engineering and Mathematics have been recruited by RGoB in partnership with GoI for teaching at schools in Bhutan.
  1. Under the Indian Technical and Economic Cooperation program, about 325 seats for training at world class training institutions covering various fields are offered annually to Bhutan. In the last decade, more than 3,000 Bhutanese nationals have availed of various ITEC training programs in India.

Culture and People-Level ties

  1. The Nehru Wangchuck Cultural Centre, the cultural arm of the Embassy in Bhutan established in the year 2010, promotes understanding and learning of Yoga, Indian classical music and other cultural activities between the two countries. A Kathak troupe from the Indian Council of Cultural Relations performed at several locations in Bhutan in January 2025. A Traditional Music Group from Bhutan visited India for the BIMSTEC Traditional Music Festival held in New Delhi in July-August 2025.
  1. India and Bhutan share close spiritual and cultural heritage of Buddhism. Bhutanese pilgrims travel to Bodh Gaya, Rajgir, Nalanda, Sikkim, Udayagiri, Sarnath and other Buddhist sites in India. The construction of the Royal Bhutan Temple, conceived on the occasion of the 50th anniversary of the establishment of diplomatic relations in 2018, was completed in 2025, and His Holiness the Je Khenpo presided over its consecration ceremony in September 2025, with the participation of the Prime Minister and Home Minister of Bhutan.
  1. Zhabdrung Statue, currently on display at the Simtokha Dzong near Thimphu has been loaned by the Asiatic Society, Kolkata to the Royal Government of Bhutan [Zhabdrung is the title of Ngawang Namgyal, a 16th century Buddhist monk – a revered figure in Bhutan, regarded as the founder of the modern nation state of Bhutan]. On 19 June 2021, a subtle smiling 3.3 feet high bronze cast statue of Lord Buddha in a lotus pose, commissioned by ICCR, was handed over to Bhutan and on 20 June 2021, coinciding with the birth anniversary of Guru Padmasambhava, the statue was consecrated and enshrined at the grand Kuenrey (sanctum sanctorum) of the Tashichhodzong.
  1. India-Bhutan Foundation: The India-Bhutan Foundation (IBF) was established pursuant to signing of an MoU between India and Bhutan in New Delhi on 29 August 2003. The Foundation aims to enhance exchanges amongst the people of India and Bhutan through activities in educational, cultural, scientific and technical fields. The management and affairs of the IBF are vested in a Board of Directors comprising ten members in total, which is co-chaired by the Ambassador of India to Bhutan and the Ambassador of Bhutan to India. The 23rd meeting of the Board of Directors of the IBF was held in Thimphu on 08-09 June 2025.

Indian Diaspora

  1. About 50,000 Indians are presently working in Bhutan in the sectors such as infrastructure development, hydropower, education, trade and commerce symbolizing action people to people ties between the two countries. Their contribution and service in the overall development of Bhutan has been recognized locally and internationally.

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