Context:

Prime Minister Narendra Modi recently visited to Bhutan, his visit coinciding with celebrations for the 70th birthday of the Fourth King of Bhutan, Jigme Singye Wangchuck. The visit aimed to strengthen the deep bilateral ties and cooperation between the two nations, blending diplomacy with cultural and spiritual significance.

Major Announcements & Agreements during the visit:

Economic and Developmental Cooperation

·         India reaffirmed unwavering support to Bhutan’s 13th Five-Year Plan and Economic Stimulus Programme, focusing on inclusive and sustainable growth.

·         The Indian Government announced a concessional Line of Credit of INR 40 billion to fund energy projects in Bhutan.

Energy Cooperation:

• • • PM Modi and His Majesty The King jointly inaugurated the 1,020 MW Punatsangchhu-II Hydroelectric Project, marking a major milestone in the Indo-Bhutan energy partnership.
    • Agreed to resume work on the 1,200 MW Punatsangchhu-I Project, set to become the largest hydropower project jointly developed by the two governments.

Connectivity and Infrastructure

• • • Both nations emphasised enhanced cross-border connectivity and border infrastructure development.
    • Key progress noted:
      • Immigration Check Post at Darranga (operational since Nov 2024)
      • Inland Waterways Terminal and Multimodal Logistics Park at Jogighopa (operational since Mar 2025)
      • MoU on Cross-Border Rail Links (Gelephu–Kokrajhar and Samtse–Banarhat) signed in Sept 2025, with a Project Steering Committee established for implementation.

Emerging Sectors of Cooperation

• • • STEM, Fintech, and Space Cooperation identified as new frontiers of the India–Bhutan partnership.
    • Work on Phase II of UPI integration to allow Bhutanese visitors to make QR-based digital payments in India.
    • Review of progress under the Joint Plan of Action on Space Cooperation for applications in communication and disaster management.

Signed Memoranda of Understanding (MoUs):

Three MoUs were signed during the visit:

• • Renewable Energy Cooperation – between Bhutan’s Ministry of Energy and Natural Resources and India’s Ministry of New and Renewable Energy.
  • Health and Medicine Cooperation – between both nations’ Health Ministries.
  • Institutional Linkages in Mental Health – between Bhutan’s PEMA Secretariat and India’s NIMHANS.

Implications of Visit:

• • The visit reaffirmed the deep-rooted friendship and trust between India and Bhutan, anchored in mutual respect, cooperation, and cultural affinity.
  • Symbolised India’s commitment to its “Neighbourhood First” policy and Bhutan’s continued reliance on India as its most trusted developmental partner.
  • The visit reinforced Bhutan’s position as a key strategic partner for India in the Himalayas, buffering India’s northern frontier with China.
  • Enhanced coordination between Thimphu and New Delhi on border management and regional security, particularly amid Bhutan–China boundary negotiations.
  • Strengthens India’s presence and goodwill in South Asia, countering growing Chinese outreach in the region.

 Conclusion:

Prime Minister Modi’s 2025 State Visit to Bhutan was not merely ceremonial — it reaffirmed a model bilateral relationship built on trust, respect, and mutual prosperity. From hydropower and digital connectivity to cultural and spiritual exchange, the outcomes reflect the evolution of India–Bhutan relations into a multifaceted developmental partnership.