India and Bhutan signed a concessional line of credit worth 40 billion rupees to finance development initiatives in the Himalayan kingdom. The agreement was exchanged between the Export-Import Bank of India and Bhutan's Finance Ministry during bilateral development talks in Thimphu.
The fifth India-Bhutan Development Cooperation Talks were co-chaired by Indian Foreign Secretary Vikram Misri and Bhutanese Foreign Secretary Dasho Pema Lektup Dorji. The two delegations reviewed the delivery of India's 100-billion-rupee support package for Bhutan's 13th Five-Year Plan for 2024-2029.
That package combines project-tied assistance, high-impact community development projects, an economic stimulus programme and programme grants. The meeting examined both the implementation of the portfolio and how funds already released were being used.
Twelve additional project-tied initiatives worth 3.32 billion rupees were approved in infrastructure, healthcare, agriculture, urban amenities and disaster management. Their inclusion brings this segment of the five-year plan to 82 projects with a total allocation of 68.6 billion rupees.
India has already disbursed 12.5 billion rupees for the economic stimulus programme, 7.352 billion for community development projects and 2 billion as a programme grant. The credit line adds a separate financing channel for Bhutan's development priorities.
The two countries also signed a memorandum linking the All India Institute of Medical Sciences with Khesar Gyalpo University of Medical Sciences for health education and research. India delivered 45 electric vehicles to support Bhutan's green mobility programme.
Misri and Dorji virtually inaugurated the Thimphu Ecological Park and Olakha Park, built through an India-funded green infrastructure and open-spaces project. The combination of finance, public facilities and technical cooperation broadens the relationship beyond large infrastructure alone.
During his two-day visit, Misri met King Jigme Khesar Namgyel Wangchuck, Prime Minister Dasho Tshering Tobgay and Foreign Minister Lyonpo D. N. Dhungyel. The agreements reinforce India's position as Bhutan's largest development partner across connectivity, education, health and institutional capacity.
