India and Bhutan review bilateral cooperation
New Delhi, September 18, 2026: India and Bhutan reviewed their wide-ranging bilateral partnership and discussed regional and international issues during External Affairs Minister S. Jaishankar’s official visit to Bhutan from September 16 to 18. During the visit, Jaishankar met Bhutan’s King, Prime Minister Tshering Tobgay and Foreign Minister D. N. Dhungyel. The two sides discussed development cooperation, energy, trade, connectivity, education and people-to-people ties.
Key development projects launched
Jaishankar and Dhungyel jointly inaugurated or launched several initiatives, including the 65-bed Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar, the transfer of 43 Jersey cows from India and the Jaganathan Bridge on the Samdrup Jongkhar-Trashigang Highway. The two ministers also witnessed the handover of 54 electric vehicles to the Royal Government of Bhutan and participated in the foundation stone ceremony for the 500-kW Lunana Hydropower Project.
Rs 4,000 crore energy credit line
Energy cooperation remained a key focus of the visit. India and Bhutan welcomed the signing of an agreement for a concessional Line of Credit of Rs 4,000 crore for energy projects in Bhutan. The two sides also noted progress on the 1,020 MW Punatsangchhu-II Hydroelectric Project and the resumption of construction at the 1,200 MW Punatsangchhu-I project. Earlier in 2026, India and Bhutan had also advanced cooperation on the tariff framework for Punatsangchhu-II.
Support for Gelephu Mindfulness City
India reaffirmed its support for Bhutan’s Gelephu Mindfulness City initiative. Both sides agreed to continue discussions through the Joint Working Group on the project. India also reaffirmed its commitment to establish an immigration check post at Hatisar in Assam to facilitate the movement of investors and visitors to Gelephu.
Trade, connectivity and digital payments
The two countries discussed the renewal of their Trade, Commerce and Transit Agreement and welcomed progress on cross-border connectivity. The operationalisation of the Samrang Land Customs Station in Assam and proposed railway links between Gelephu-Kokrajhar and Samtse-Banarhat were also noted. The two sides also welcomed the operationalisation of a UPI-based payment facility, allowing Bhutanese nationals to make digital payments in India through Bhutanese mobile applications.
Education and healthcare cooperation
India and Bhutan also agreed to expand educational opportunities for Bhutanese students. Seats under ICCR scholarships will increase from 30 to 60, while seats under the Nalanda University Scholarship Scheme will rise from 30 to 55. The two sides also discussed cooperation in space applications, healthcare, training, cultural exchanges and capacity building. India thanked Bhutan for supporting its candidature for a non-permanent UN Security Council seat for 2028-29.
