Prime Minister Narendra Modi concluded a two-day visit to Bhutan, emphasizing India’s deep commitment to the Himalayan kingdom’s development goals, including financial support for its key national plan and backing for a transformative economic hub.
During his visit to Thimphu, PM Modi engaged in high-level discussions, met with former King Jigme Singye Wangchuck, and participated in the Kalachakra initiation ceremony as part of the Global Peace Prayer Festival.
💰 Support for Bhutan’s 13th Five-Year Plan
India reiterated its “unwavering support” for Bhutan’s 13th Five-Year Plan (2024–2029), which is designed as a strategy for the country to transition into a “High-Income GNH Economy” by 2034. The plan emphasizes economic transformation, climate resilience, and skilling.
- Financial Commitment: India has pledged ₹10,000 crore towards the plan, which includes an Economic Stimulus Programme.
- Energy Funding: India also unveiled a concessional credit line of ₹4,000 crore to fund energy projects in Bhutan.
🏙️ Backing the Gelephu Mindfulness City
India conveyed its full backing for the ambitious Gelephu Mindfulness City (GMC) project, an economic hub located close to the border with Assam, aligning with India’s Act East Policy. The GMC aims to create a special administrative region (SAR) for sustainable, eco-friendly economic growth rooted in Bhutanese values.
- Connectivity Facilitation: To aid the project, Modi announced the decision to establish an Immigration Check Post at Hatisar in Assam to facilitate the movement of investors and visitors to the Gelephu economic hub.
- Railway Link: During the visit, plans for the cross-border rail link between Kokrajhar (Assam) and Gelephu (Bhutan) were also discussed, with the construction expected to take place over the coming years.
⚡ Hydropower Cooperation Advances
Energy partnership, a cornerstone of India-Bhutan ties, saw major progress:
- Punatsangchhu-II Inauguration: Modi and Bhutan King Jigme Khesar Namgyel Wangchuck jointly inaugurated the 1,020-MW Punatsangchhu-II hydroelectric project. This project is fully completed and adds approximately 40% to Bhutan’s total installed power generation capacity.
- Punatsangchhu-I Resumption: Both sides reached an understanding on resuming work on the dam structure for the larger 1,200-MW Punatsangchhu-I project and agreed to work for its speedy completion, which, once done, will be the largest jointly developed hydroelectric project between the two nations.
🧘 Cultural and Spiritual Engagement
PM Modi participated in the “Kālacakra Wheel of Time Empowerment” ceremony at the Global Peace Prayer Festival in Thimphu, alongside the King and former King, in a ceremony presided over by Bhutan’s chief abbot Je Khenpo.
- Gesture of Friendship: At the conclusion of the two-day state visit, King Jigme Khesar personally came to the airport to see off PM Modi, underscoring the warmth of the bilateral relationship.