India and Bhutan Strengthen Bilateral Ties with New Deals and Funding Under 13th Five-Year Plan

During the 5th India-Bhutan Development Cooperation Talks, held during Indian Foreign Secretary Vikram Misri’s visit to Bhutan on July 30–31, 2026, both nations reviewed their ongoing bilateral partnership under Bhutan’s 13th Five-Year Plan (2024–29). Co-chaired alongside Bhutanese Foreign Secretary Pema Lektup Dorji, the meeting resulted in the approval of 12 new Project Tied Assistance (PTA) initiatives valued at Rs. 332 crore (US$ 34.41 million). This brings the total number of approved PTA projects to 82, with a cumulative outlay of Rs. 6,860 crore (US$ 710.95 million) across key sectors including healthcare, infrastructure, agriculture, urban planning, and disaster management. The discussions also evaluated the broader execution of India's overall Rs. 10,000 crore (US$ 1.04 billion) support commitment for Bhutan's current five-year economic plan. In addition to project approvals, financial assistance was released across several channels, including Rs. 1,250 crore for the Economic Stimulus Programme, Rs. 735.20 crore for High Impact Community Development Projects, and a Rs. 200 crore Programme Grant. Key milestone events during the visit included the virtual inauguration of the Thimphu Ecological Park and Olakha Park, as well as the delivery of 45 electric vehicles under the "Accelerate e-Mobility Uptake in Bhutan" initiative. To further deepen bilateral ties, both sides operationalized a concessional Rs. 4,000 crore (US$ 414.55 million) Line of Credit agreement between Bhutan and EXIM Bank for energy projects, alongside an MoU between AIIMS New Delhi and Khesar Gyalpo University of Medical Sciences to expand medical research and training collaboration. $SJVN $NHPC $TATAPOWER $PTC