In a significant boost to bilateral relations, India and Bhutan have unveiled a series of new agreements spanning energy, infrastructure, and cultural cooperation. The announcements were made following high-level discussions aimed at strengthening the longstanding partnership between the two Himalayan neighbours.
At the heart of the new initiatives is a ₹40 billion (INR 4,000 crore) line of credit extended by India to Bhutan, dedicated to supporting a range of energy projects. The funding is expected to accelerate Bhutan’s ambitious plans to expand its renewable energy sector and bolster regional energy security.
The two nations also signed several Memoranda of Understanding (MoUs) covering renewable energy, health, and mental health, signalling a broadening of cooperation beyond traditional sectors. These agreements aim to promote knowledge exchange, capacity building, and joint research between institutions of both countries.
In a gesture underscoring cultural and spiritual ties, India has agreed to provide land in Varanasi for the construction of a Bhutanese temple, symbolizing the shared Buddhist heritage and deep people-to-people connections.
On the infrastructure front, both sides announced measures to improve cross-border connectivity. A new immigration checkpoint will be established at Hatisar, facilitating smoother travel and trade between the two nations. Additionally, plans are underway for two new railway links — one connecting Samtse to Banarhat and another linking Gelephu to Kokrajhar — to enhance mobility and economic integration across the border.
Officials described the developments as a reflection of the “enduring friendship and mutual trust” that define India–Bhutan relations. The initiatives, they said, align with the shared vision of sustainable growth, regional connectivity, and cultural harmony.
