India and Bhutan have reviewed the progress of their long-standing development partnership and approved 12 new projects worth $34.41 million under Bhutan’s 13th Five-Year Plan (2024-2029). The decisions were taken during the 5th India-Bhutan Development Cooperation Talks, reflecting the continued commitment of both nations to strengthen cooperation across multiple sectors.
Indian Foreign Secretary Vikram Misri visited Bhutan on July 30-31, 2026, where he co-chaired discussions with Bhutanese Foreign Secretary Pema Lektup Dorji. During the meeting, both sides assessed ongoing development initiatives and reviewed collaboration in areas including infrastructure, energy, trade, investment, connectivity, and regional matters.
The discussions also focused on India’s extensive support package for Bhutan’s current Five-Year Plan. India has committed $1.04 billion in assistance to support Bhutan’s development priorities. With the approval of the latest 12 Project Tied Assistance (PTA) initiatives, the total number of PTA projects under the plan has increased to 82, with a combined investment of approximately $710.95 million.
The newly approved projects will cover several important areas, including infrastructure expansion, healthcare improvement, agricultural development, urban planning, and disaster management. These initiatives highlight the broad nature of India’s partnership with Bhutan and its focus on supporting sustainable growth and community development.
As part of ongoing assistance, India has already provided significant financial support through multiple programs. This includes $129.55 million under Bhutan’s Economic Stimulus Programme, $76.19 million for High Impact Community Development Projects, and $20.73 million as a Programme Grant.
During the visit, the two countries also marked progress in environmental and mobility initiatives. Officials virtually inaugurated the Thimphu Ecological Park and Olakha Park, while 45 electric vehicles were handed over under the “Accelerate e-Mobility Uptake in Bhutan” initiative. The project aims to encourage cleaner transportation solutions and support Bhutan’s sustainability goals.
A major financial agreement was also exchanged between Bhutan’s government and the Export-Import Bank of India to activate a concessional Line of Credit worth $414.55 million for energy-related projects. The agreement is expected to support future investments in Bhutan’s power sector and strengthen energy cooperation between the two nations.
Additionally, the All India Institute of Medical Sciences (AIIMS) in New Delhi and the Khesar Gyalpo University of Medical Sciences of Bhutan signed a memorandum of understanding to expand collaboration in medical education, research, and training.
Both countries reaffirmed their commitment to deepening their historic relationship and agreed to conduct the next round of Development Cooperation Talks in New Delhi. The partnership continues to focus on inclusive development, economic growth, and mutual progress.
