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India and Bhutan: A Renewed Partnership for the Future

Unveiling New Horizons in India-Bhutan Relations

India and Bhutan: A Renewed Partnership for the Future

  • 19 Nov, 2025
  • 297

India-Bhutan Relations: A Renewed Partnership

The Indian Prime Minister's recent two-day visit to Bhutan underscored the enduring bond between the two countries. This visit spotlighted significant announcements in energy, connectivity, technology, and cultural cooperation, paving the way for a strengthened Himalayan partnership. As the geopolitical landscape continues to evolve, India's dedication to supporting Bhutan's development aspirations highlights the mutual trust and shared values that have defined this alliance for over seven decades.

The Foundation: India Bhutan Friendship Treaty

The India-Bhutan relationship is deeply rooted in the India Bhutan Friendship Treaty. This bond evolved with the 2007 revision of the 1949 Treaty of Perpetual Peace and Friendship, setting a mutual commitment framework. The treaty emphasizes respect for each other's independence, sovereignty, and territorial integrity, establishing a partnership that advances shared strategic interests while respecting sovereignty.

Key Agreements to Enhance Cooperation

  • Renewable Energy Cooperation: This agreement between India's Ministry of New and Renewable Energy and Bhutan's Ministry of Energy and Natural Resources aims to extend clean energy collaboration beyond hydropower.
  • Health and Medicine Cooperation: The health ministries of both nations are set to enhance healthcare outcomes and promote knowledge sharing.
  • Mental Health Linkages: Collaborations between Bhutan's PEMA Secretariat and India's National Institute of Mental Health and Neuro Sciences (NIMHANS) emphasize the importance of mental wellness.

Hydropower: A Backbone of Economic Partnership

A pivotal moment in the visit was the joint inauguration of the 1,020 MW Punatsangchhu-II Hydroelectric Project. This project, the fourth hydropower plant developed with Indian assistance, enhances Bhutan's installed hydropower capacity by 40%. The economic significance of hydropower, forming two-thirds of Bhutan's exports, underscores its role as a cornerstone of India-Bhutan relations. Both leaders agreed to expedite the completion of the 1,200 MW Punatsangchhu-I Project, which will be the largest joint hydropower initiative between the two countries.

Financial and Infrastructure Commitments

The Indian PM's reaffirmation of support for Bhutan's 13th Five-Year Plan, with a ₹10,000 crore commitment, highlights India's investment in Bhutan's development. The establishment of cross-border railway connections, including the Kokrajhar (Assam) to Gelephu (Bhutan) and Banarhat (West Bengal) to Samtse (Bhutan) routes, marks a significant development in bilateral relations, reducing logistics costs and opening economic opportunities.

Gelephu Mindfulness City: A Vision for the Future

India's partnership in Bhutan's Gelephu Mindfulness City project positions it as a hub for innovation and growth. The announcement of an Immigration Check Post at Hatisar in Assam signifies India's commitment to enhancing connectivity and facilitating movement to this administrative region.

Expanding Trade and Technological Integration

With bilateral trade tripling since 2014, India remains Bhutan's primary trading partner. The partnership is expanding into technological domains, with advancements in digital and space cooperation, including Phase II of UPI integration to facilitate financial interoperability for Bhutanese visitors in India.

Cultural and Spiritual Connections

The relationship extends beyond economic dimensions, with cultural and spiritual exchanges strengthening ties. The Indian leader's participation in the Kalachakra empowerment initiation and the decision to provide land in Varanasi for a Bhutanese temple and guesthouse exemplify the deep cultural bonds between the two nations.

Strategic Importance and Regional Stability

The India-Bhutan relationship holds strategic significance, serving as a buffer state between India and China. Cooperation in border management and security, exemplified during the 2017 Doklam Standoff, underscores the partnership's role as an anchor of stability in the region.

Conclusion: A Future Anchored in Cooperation

India and Bhutan have reaffirmed their commitment to high-level exchanges and collaboration across various sectors, creating a model of partnership based on trust and shared values. As they navigate regional and global challenges, this enduring partnership will continue to anchor stability, prosperity, and peace in the Himalayan region and beyond.

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