PM Modi's Bhutan Visit Strengthens Energy, Trade, Cultural Ties

• India pledged ₹40 billion credit and reaffirmed support for Bhutan’s five-year and economic plans.
• Punatsangchhu-II inaugurated, boosting electricity exports and accelerating the larger Punatsangchhu-I project.
• Partnership expanded across hydropower, fintech, fertilizers, and culture, deepening India–Bhutan regional cooperation.

Prime Minister Narendra Modi’s two-day state visit to Bhutan marked a significant step in reinforcing the historic and strategic bond between the two Himalayan neighbours. Invited by King Jigme Khesar Namgyel Wangchuck, PM Modi attended the 70th birthday celebrations of His Majesty at Changlimithang Stadium, where he was honoured as the Guest of Honour. The visit carried deep cultural and spiritual meaning, as Bhutan’s leadership described Modi as a “spiritual master”, symbolizing India’s enduring connection with the kingdom.

During high-level meetings with King Wangchuck and Prime Minister Tshering Tobgay, India reaffirmed its unwavering support for Bhutan’s 13th Five-Year Plan and Economic Stimulus Programme, reflecting New Delhi’s commitment to the nation’s sustainable growth and economic resilience. Discussions spanned multiple domains, including energy cooperation, trade, connectivity, and digital transformation, setting a clear roadmap for the next phase of partnership.

One of the visit’s landmark moments was the inauguration of the 1,020 MW Punatsangchhu-II Hydroelectric Project, which officially commenced electricity exports from Bhutan to India. Both sides also agreed to fast-track the 1,200 MW Punatsangchhu-I Hydropower Project, soon to become the largest India Bhutan joint venture in the energy sector. Additionally, India extended a ₹40 billion concessional line of credit to Bhutan to strengthen its hydropower and infrastructure capabilities.

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In trade and connectivity, India committed to opening a new immigration checkpoint at Hatisar in Assam, easing movement linked to Bhutan’s ambitious Gelephu Mindfulness City project. Bhutan, in turn, appreciated India’s steady supply of essential commodities, including fertilizers, ensuring agricultural stability. The two nations also expanded collaboration in STEM education, fintech, and space technology, supported by initiatives like UPI integration and academic exchanges.

Cultural ties were highlighted through India’s decision to allocate land in Varanasi for a Bhutanese temple and guest house, and Bhutan’s hosting of the Holy Piprahwa Relics of Lord Buddha in Thimphu for public veneration, strengthening spiritual diplomacy between the two nations.