India’s Development Assistance to Bhutan

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Key takeaways

India handed over Rs. 290 crore to Bhutan for development projects spanning education, health, and public infrastructure.
Bhutan allocated Rs. 8.83 crore of this support to the Digital Drukyul e-governance skilling program.
Bilateral relations between India and Bhutan are formally guided by the Treaty of Friendship and Cooperation, 1949, which was revised in 2007.
Joint bilateral energy cooperation features major hydropower initiatives such as Punatsangchhu-II (1,020 MW) and Punatsangchhu-I (1,200 MW).

India recently handed over Rs. 290 crore to fund various projects under the Bhutanese government’s development plan.
These financial grants focus on critical sectors like education, health, disaster preparedness, and public infrastructure.

The financial assistance directly supports colleges under the Royal University of Bhutan.
It also aids essential facilities including the National Weather and Flood Warning Centre, the Thimphu District Court, and the Gelephu General Hospital.
An amount of Rs. 8.83 crore specifically goes toward funding the Digital Drukyul skilling program.
Digital Drukyul serves as Bhutan's flagship initiative to modernize e-government and upgrade public service delivery.

India and Bhutan officially established diplomatic relations in 1968.
Their strong bilateral relations are guided by the Treaty of Friendship and Cooperation, 1949, which was later revised in 2007.
Geographically, Bhutan shares its international border with four Indian states: Assam, Arunachal Pradesh, West Bengal, and Sikkim.

Bhutan made history by becoming the second foreign country to launch the BHIM app.
India actively supports the Digital Drukyul initiative by funding a robust optical fibre network.
In the space sector, ISRO successfully launched the jointly developed India-Bhutan SAT on 26th November 2022.

India assists Bhutan in overcoming severe shortages of STEM teachers across local schools.
Both nations are actively strengthening cross-border connectivity through two proposed rail links: Kokrajhar-Gelephu and Banarhat-Samtse.
Key joint hydropower projects include Punatsangchhu-II (1,020 MW), Punatsangchhu-I (1,200 MW), and the upcoming Dorjilung project (1,125 MW).

India and Bhutan actively collaborate within several important regional forums.
Shared regional groupings include the South Asian Association for Regional Cooperation (SAARC).
They also work together under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).
Additionally, both countries participate in the Bangladesh-Bhutan-India-Nepal Initiative (BBIN) framework.