India and Bhutan have approved 12 new Project Tied Assistance (PTA) projects worth ₹332 crore during the fifth India-Bhutan Development Cooperation Talks, further strengthening the long-standing development partnership between the two neighbouring countries.

The discussions reviewed progress under Bhutan's 13th Five-Year Plan (2024–2029), with both sides reaffirming their commitment to expanding cooperation across multiple sectors.

Foreign Secretaries Co-Chair Development Talks

Indian Foreign Secretary Vikram Misri visited Bhutan on July 30–31 at the invitation of Bhutanese Foreign Secretary Pema Lektup Dorji.

During the visit, Misri called on King Jigme Khesar Namgyel Wangchuck, Prime Minister Tshering Tobgay, and Foreign Affairs and External Trade Minister D.N. Dhungyel.

The meetings focused on strengthening bilateral cooperation in development, energy, trade, investment, connectivity, regional issues and people-to-people exchanges.

India Reviews ₹10,000 Crore Support Package

The two countries reviewed the implementation of India's ₹10,000 crore assistance package for Bhutan's current Five-Year Plan.

• Project Tied Assistance (PTA)
• High Impact Community Development Projects (HICDPs)
• Economic Stimulus Programme (ESP)
• Programme Grants

With the latest approvals, the total number of PTA projects has increased to 82, representing a combined investment of ₹6,860 crore.

Projects Cover Key Development Sectors

The newly approved projects will support Bhutan's development priorities in several critical sectors, including:

• Infrastructure development
• Healthcare
• Agriculture
• Urban development
• Disaster management
• Sustainable public infrastructure

India has also released:

• ₹1,250 crore under the Economic Stimulus Programme
• ₹735.20 crore for High Impact Community Development Projects
• ₹200 crore as Programme Grant

Both sides reviewed the utilisation of these funds during the talks.

Read more: Polish Minister Claims PM Modi Helped Prevent Russian Nuclear Strike on Ukraine in 2022

New Agreements Signed

The visit also witnessed the signing of two major agreements aimed at expanding bilateral cooperation.

The first agreement established a ₹4,000 crore concessional Line of Credit through the Export-Import Bank of India (EXIM Bank) to support energy projects in Bhutan.

The second agreement was a Memorandum of Understanding (MoU) between AIIMS New Delhi and the Khesar Gyalpo University of Medical Sciences of Bhutan, promoting collaboration in medical education, research and professional training.

Green Projects and Electric Vehicles Inaugurated

During the visit, both Foreign Secretaries virtually inaugurated the Thimphu Ecological Park and Olakha Park, developed under India's Project Tied Assistance programme.

They also formally handed over 45 electric vehicles to the Bhutanese government under the Accelerate e-Mobility Uptake in Bhutan initiative, supporting the country's clean transportation goals.

Both Nations Reaffirm Strong Bilateral Partnership

India reaffirmed its commitment to supporting Bhutan's national development priorities in line with the shared vision of Prime Minister Narendra Modi and Bhutan's leadership.

Bhutan expressed appreciation for India's continued assistance, describing it as vital for implementing the country's development agenda.

Both governments agreed to hold the next India-Bhutan Development Cooperation Talks in New Delhi on a mutually agreed date, reaffirming the enduring partnership built on trust, mutual respect and close people-to-people ties.