Jaishankar visits Bhutan to strengthen ties and review major joint projects

External Affairs Minister S. Jaishankar has arrived in Bhutan for a two-day official visit, aimed at shoring up diplomatic ties and reviewing key development projects between the two close neighbours.

During the visit, which runs from September 16 to 17, Jaishankar will hold bilateral talks with Bhutan’s Minister of Foreign Affairs and External Trade, Lyonpo D.N. Dhungyel. He is also scheduled to receive a royal audience with King Jigme Khesar Namgyel Wangchuck and call on Prime Minister Tshering Tobgay.

According to the Ministry of External Affairs, the trip is part of a regular pattern of high-level exchanges designed to reinforce the friendship between the two nations. It comes at a time when New Delhi is placing a heavy emphasis on its "Neighbourhood First" foreign policy.

Funding the five-year plan

The visit builds on a flurry of recent bilateral activity. In July, India’s Foreign Secretary, Vikram Misri, travelled to Thimphu to co-chair development cooperation talks. During that visit, the Exim Bank of India and Bhutan's finance ministry signed an agreement for a concessional line of credit worth ‹4,000 crore.

India remains the primary financial backer of Bhutan’s development plans. New Delhi has committed ‹10,000 crore for Bhutan's 13th five-year plan, which spans from 2024 to 2029. On top of this, the Indian government has earmarked ‹750 crore for Bhutan's Economic Stimulus Programme and another ‹100 crore as a direct programme grant.

Physical connectivity is also on the agenda. Last year, India announced it would entirely fund the construction of the first two cross-border railway links between the countries, costing ‹4,033 crore, to ease trade and travel across the border.

Hydro projects and river management

Water and clean energy form another major pillar of the partnership. In August, delegations from both countries met in New Delhi to discuss trans-border rivers. Led by Union Jal Shakti Minister CR Paatil and Bhutan’s Minister for Energy and Natural Resources, Lyonpo Gem Tshering, the two sides reviewed flood forecasting, hydrological data sharing, and joint efforts to manage transboundary waters.

The ministers also discussed ways to fast-track the Punatsangchhu-I Hydroelectric Project, a massive joint power venture currently under construction in Bhutan.

Around the same time, India's Union Power Minister, Manohar Lal, met with Tshering to discuss wider energy cooperation. Hydroelectric power generated in Bhutan is regularly exported to India, providing Thimphu with valuable revenue and New Delhi with clean energy.