Embassy of India

India’s Support for Economic Stimulus Programme and development cooperation

Today, fifth tranche of INR/Nu. 2.5 billion (250 crores) for the Economic Stimulus Programme was handed over by the Ambassador of India to the Minister for Foreign Affairs and External Trade of the Royal Government of Bhutan (RGoB). So far, India has released INR/Nu. 12.50 billion (1,250 crores) to the RGoB as part of Government of India’s commitment of INR/Nu. 15 billion (1,500 crores) towards the Economic Stimulus Programme (ESP) in Bhutan under the 13^th Five Year Plan (2024-209).

2. At the handover ceremony, Hon’ble Foreign Minister conveyed gratitude to the Government of India for its support to the ESP, noting its positive impact on farmers, students and youth, Desuups, small and medium enterprises, start-ups, creative industry, hospitality and tourism sectors. He underscored the positive impact of ESP on post-Covid-19 pandemic economic revitalisation and employment generation in Bhutan. He also thanked the Government of India for concurring to RGoB’s proposal to allocate INR/Nu. 2.50 billion for the ‘National Fuel Price Smoothening Framework’ which has served to mitigate the impact of rise in fuel prices and contributed to the economy in Bhutan. Ambassador observed that India has been fulfilling efficiently its development commitments to Bhutan and disbursing funds under the 13^th Five Year Plan in a timely manner for Project Assistance, ESP, High Impact Community Development Projects and Programme Grant.

3. During the meeting, Ambassador also handed over cheques amounting to INR/Nu. 464 million (46.4 crores) for the following projects:

(I) Professional Development and Immersion Programmes for Teachers, Counsellors and Education Leaders: INR/Nu. 337 million (33.7 crores) towards improvement of quality of school education in Bhutan.

(ii) Digital Skilling Programme: INR/Nu. 67.4 million (6.74 crores) to support Digital Drukyul by creating digitally literate citizens through basic and intermediate digital literacy training programmes. Under this programme, around 1,00,00 citizens across all Gewogs will be trained through GovTech.

(iii) Recruitment of STEM Teachers serving in Bhutanese schools: INR/Nu. 59.7 million (5.97 crores).

4. Development cooperation is a significant element of special and unique friendship between India and Bhutan and our peoples. Out of Government of India’s committed support of INR/Nu. 100 billion (10,000 crores) for Bhutan’s 13^th Five Year Plan period (2024-2029), covering Project Assistance, High Impact Community Development Projects, Economic Stimulus Programme and budgetary support to Bhutan in the form of Programme Grant, funds amounting to about INR/Nu. 34 billion (3,400 crores) have been released by India before completion of the first two years of Plan period.

5. As per the budget of Bhutan for the financial year 2026-27 adopted recently, over 30% of the capital expenditure under this budget will be supported through grants by the Government of India. We are pleased to be the top development cooperation partner of Bhutan and to continue to meet all our support to Bhutan in a timely and efficient manner in line with the consistent record of friendship and cooperation between India and Bhutan.

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25 June 2026
Thimphu