Archive · 24 Aug 2026
India-Bhutan Ties Deepen Across Energy, Trade and Connectivity
India and Bhutan are working more closely together in several areas.
India is helping Bhutan carry out its five-year national development plan.
Much of the support will go to healthcare, city improvements and protection from disasters.
The countries are also cooperating on clean energy and hydropower.
Indian company JSW Energy and Bhutan’s Druk Green Power Corporation are building a large hydropower project together.
A new road route will make it easier to move goods between Bhutan and India’s Assam region.
India Post and Bhutan Post are connecting their systems to make payments and mail services easier.
India is also helping improve rail links near Bhutan’s border.
The two countries say their relationship supports Bhutan’s development and closer regional connections.
India has committed INR 10,000 crore to support Bhutan’s 13th Five-Year Plan for 2024–29.
Of the package, Nu 6,860 crore will fund 82 projects in healthcare, urban infrastructure and disaster resilience.
JSW Energy and Druk Green Power Corporation formed a 51:49 joint venture for Bhutan’s 920 MW Punatsangchhu-III hydropower project.
A Rs 4,000 crore credit line will support Bhutan’s upcoming renewable-energy projects.
New trade routes, postal-payment links and rail connections are being developed to improve India-Bhutan connectivity.
- Who
- India and Bhutan, including their governments, energy companies and postal services.
- What
- The countries are expanding cooperation in development planning, energy, trade, digital services and transport connectivity.
- When
- Over the past year; the development support covers Bhutan’s 13th Five-Year Plan for 2024–29.
- Where
- Across Bhutan and India, including Wangdue Phodrang, Assam and Guwahati.
- Why
- To support Bhutan’s national development priorities and strengthen trade, energy cooperation and cross-border connectivity.
- Development commitment
- INR 10,000 crore, or Nu 100 billion, for Bhutan’s 13th Five-Year Plan.
- Plan period
- 2024–29.
- Project assistance
- Nu 6,860 crore for 82 high-priority Project Tied Assistance schemes.
- Hydropower project
- The 920 MW Punatsangchhu-III project in Wangdue Phodrang.
- Joint venture ownership
- JSW Energy holds 49% and Druk Green Power Corporation holds 51%.
- Renewable-energy credit
- Rs 4,000 crore through an Umbrella Line of Credit Agreement with the Export-Import Bank of India.
- Digital postal cooperation
- Bhutan Post and India Post are integrating the Universal Postal Union’s PosTransfer system with India’s Unified Payments Interface.