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Deepening India-Bhutan Ties: A Strategic Development Partnership

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India and Bhutan have reaffirmed their bilateral development cooperation, marked by a new ₹4,000 crore Line of Credit and the approval of 12 critical infrastructure projects to support Bhutan's 13th Five Year Plan.

The recent visit of India’s Foreign Secretary to Thimphu marks a significant milestone in the enduring 'special relationship' between India and Bhutan. Central to the discussions was the alignment of India’s development assistance with Bhutan’s 13th Five Year Plan, reflecting a shared commitment to sustainable growth and socio-economic prosperity in the Himalayan nation. Key outcomes of the visit include the signing of a Line of Credit (LoC) agreement worth ₹4,000 crore. This financial instrument is designed to bolster Bhutan’s economic resilience and facilitate the implementation of 12 new infrastructure and community development projects. These initiatives are expected to enhance connectivity, improve public service delivery, and foster grassroots development, which remains a cornerstone of India’s 'Neighbourhood First' policy.

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