India-Bhutan Partnership: How Modi's Visit Strengthens Economic Ties

As Prime Minister Narendra Modi concluded his two-day state visit to Bhutan, the Bhutanese side appreciated India's assistance for its 13th Five-Year Plan period for various projects under implementation across Bhutan and their contribution to the country's development.

PM Modi also conveyed the full support of the Government of India for the realisation of "His Majesty's vision for the Gelephu Mindfulness City".

"PM Modi announced the decision to establish an Immigration Check Post at Hatisar, Assam, to facilitate easy movement of investors and visitors to Gelephu. His Majesty appreciated the Government of India's support for the construction of Gyalsung academies," according to a statement from the Prime Minister's Office (PMO).

The leaders welcomed the understanding reached regarding the resumption of work on the main dam structure of the 1200 MW Punatsangchhu-I hydroelectric project and agreed to work for expeditious completion of the project.

Once completed, Punatsangchhu-I will be the largest hydroelectric project jointly developed by the two Governments.

The leaders also welcomed the active engagement of Indian companies in the hydropower projects in Bhutan.

The Bhutanese side expressed appreciation for the announcement by the Government of India of a concessional Line of Credit of Rs 40 billion to fund energy projects in Bhutan.

The two sides underlined the importance of improving cross-border connectivity and enhancement of border infrastructure, including the setting up of Integrated Check Posts.

Both sides also welcomed the signing of the Memorandum of Understanding (MoU) on the establishment of cross-border rail links (Gelephu-Kokrajhar and Samtse-Banarhat) in September 2025 and the subsequent establishment of the Project Steering Committee for the project's implementation.

"The Bhutanese side expressed appreciation for the steps taken by the government of India to institutionalise arrangements for the uninterrupted supply of essential commodities and fertilisers to Bhutan. Both sides welcomed the arrival of the first consignment of fertilisers from India under the new arrangement," according to the PMO statement.

Several MoUs were signed during PM Modi's November 11-12 visit, including an MoU between Ministry of Energy and Natural Resources, Royal Government of Bhutan (RGoB), and Ministry of New and Renewable Energy, Government of India, on Cooperation in the field of Renewable Energy; MoU between Ministry of Health, RGoB, and Ministry of Health and Family Welfare, GoI, on Cooperation in the field of Health and Medicine; and MoU between The PEMA Secretariat and the National Institute of Mental Health and Neuro Sciences, GoI on Building Institutional Linkages.

- IANS