Embassy of IndiaThimphu

Bhutan in MEA Annual Report for the year 2023-24

A. Excerpts from Ministry of External Affairs Annual report related to Bhutan

India and Bhutan enjoy exemplary bilateral relations, characterised by mutual trust, understanding, goodwill and excellent people-to-people contacts across all levels. These ties of friendship witnessed significant growth in 2023 with particular focus on cross-border connectivity, high level interactions, trade and investments, education; energy cooperation, youth skilling and technology.

Energy cooperation witnessed sustained engagement during the year. The 17th and 18th Authority Meetings of Punatsangchhu Hydroelectric Project Authority (PHPA)-II were held in February and September, respectively. Meetings of the technical expert group formed for PHPA-I were held in 2023. The two sides also agreed to extend the existing energy cooperation in non-hydro renewables, such as solar and wind energy, hydrogen and e-mobility.

Bilateral cooperation in education, capacity building, STEM and space sector intensified in 2023. The outlay for the Ambassador’s scholarship for Bhutan, launched by the Government of India doubled, while cooperation in medical and legal studies strengthened. Indian teachers were recruited to teach in Bhutanese schools, in order to fill the gap of STEM teachers in Bhutan. Cooperation in the space sector expanded with the inauguration of a ground station for the India-Bhutan Satellite (SAT) in Thimphu in March.

High Level Visits

The King of Bhutan Jigme Khesar Namgyel Wangchuck paid two official visits to India on 03-05 April and 03-10 November, respectively.

In April, the King of Bhutan visited New Delhi and called on the Hon’ble President. In addition, he met the Prime Minister, EAM and senior officials of the Government of India. The two sides reviewed all aspects of the bilateral relationship, identified potential sectors for future bilateral cooperation and deliberated on regional and global issues of mutual interest.

Bhutan also joined the International Big Cat Alliance and the Global River Cities Alliance as a Founding Member. During his November visit, the King held discussions with the Prime Minister, EAM and senior officials of Government of India. The King’s November visit marked his first official trip to the state of Assam and Maharashtra, where he interacted with the Governor and Chief Minister of the States.

In August, Princess Sonam Dechan Wangchuck visited India to enhance bilateral ties in the area of legal studies and judiciary. Furthermore, the Princess served as the Chief Guest at the convocation ceremony of the National Law School of India University, Bengaluru.

Minister of Foreign Affairs and External Trade of Bhutan Dr. Tandi Dorji, participated at the Raisina Dialogue in New Delhi (March), Minister of Energy & Natural Resources of Bhutan Loknath Sharma attended the India Energy Week 2023 (February), Partnership Summit (March) and the inauguration of the International Big Cat Alliance (April). Health Minister of Bhutan Dechen Wangmo participated at the Federation of Indian Chambers of Commerce & Industry (FICCI)’s Advantage Health Care-India exhibition (February).Finance Minister of Bhutan Namgay Tshering participated in the Asia Economic Dialogue held in Pune (February).

A Parliamentary delegation led by Speaker of the National Assembly of Bhutan Wangchuk Namgyel visited India from 05- 11 February. The delegation called on the Hon’ble President and the Vice-President and met with the Speaker of the Lok Sabha and EAM. During the visit, the two sides signed an MoU on strengthening parliamentary relations between the Lok Sabha and the National Assembly of Bhutan.

Health Minister of Bhutan Dechen Wangmo participated in the 1st ‘Voice for Global South Summit’ hosted by India in virtual format from 12-13 January. In the 2nd Voice of the Global South Summit held in November, Bhutan participated in three sessions- Chief Advisor of the Interim Government Chogyal Rigdzin participated in the Inaugural Leaders’ Session, Advisor to the Ministry of Foreign Affairs and External Trade Chewang Rinzin participated in the Foreign Ministers’ Session and Advisor to the Ministry of Health Karma Hamu Dorjee participated in the Health Ministers’ Session.

Foreign Secretary visited Bhutan on 18-20 January and 06-07 July to co-chair the 4th and 5th edition of India-Bhutan Development Cooperation Talks. Both sides reviewed the projects covered under the Government of India’s assistance to Bhutan under the 12th Five Year Plan and discussed potential areas of cooperation for the upcoming 13th Five Year Plan of Bhutan for 2024. In addition, Foreign Secretary of Bhutan Pema Choden visited India from 28-29 July to discuss India-Bhutan economic cooperation and development partnership.

Development Cooperation

Under the 12th Five Year Plan (FYP) of Bhutan, India supported 83 Project Tied Assistance projects with an outlay of INR 2800 crores, 524 HICDPs/Small Development Projects at an outlay of INR 850 crores and Program Grant amounting INR 850 crores. India also extended Trade Support Facility amounting to INR 400 crores for Bhutan’s 12th FYP. Additionally, India announced that it would step-up support for Bhutan’s 13th Five Year Plan, during the King of Bhutan’s visit to New Delhi in April.

The Government of India continues to support Bhutan’s Gyalsung Project – an initiative of the King of Bhutan to equip the youth with critical skills and contribute towards nation-building efforts. Notable development projects inaugurated in year include- Jigme Singye Wangchuck School of Law, Pemagatshel Dzong, hostel facilities and laboratory at the College of Natural Resources in Punakha, Khasadrapchu and Begana bridges in Thimphu, Diana Kuenphen Zam bridge in Samtse, Digital Drukyul and Upgraded Central Schools.

Energy Cooperation

Cooperation in the hydropower sector remains one of the central pillars of India-Bhutan ties of friendship and engagement. At present, India is constructing two hydro24 ANNUAL REPORT | 2023 25 electric projects in Bhutan, namely- Punatsangchhu-I (1200 MW) and Punatsangchhu-II (1020 MW). During the King of Bhutan’s official visit to India, it was agreed that the India-Bhutan energy partnership will extend to the area of non-hydro renewables, such as solar as well as in green initiatives for e-mobility. Secretary of the Ministry of Energy and National Resources of Bhutan Karma Tshering visited India on 16-17 March and 12-14 October to review the bilateral energy cooperation.

Trade and Connectivity

India has remained Bhutan’s top trading partner, accounting for about 80% of Bhutan’s overall trade. Since 2014, India’s trade with Bhutan has tripled from USD 484 million in 2014-15 to USD 1615 million in 2022-23, with the balance of trade in India’s favour. India agreed to consider setting up an Integrated Check Post (ICP), along India-Bhutan border near Dadgiri (Assam), in addition to the ICP at Jaigaon/Pheuntsholing announced during the King of Bhutan’s visit in April.

India also agreed to designate Darranga (Assam)/Samdrup Jongkhar (Bhutan) as an ICP between Bhutan and India, to facilitate the entry and exit of third country nationals by land route, for enhancing connectivity and tourism.

In order to improve cross border connectivity, both sides agreed to take forward two rail links between India and Bhutan, one each at Kokrajhar-Gelephu and Banarhat-Samtse. In December, the Government of India extended an additional Standby Credit Facility (SCF) for Bhutan, valid for a period of five years.

Education and Capacity Building

India continues to facilitate capacity-building efforts for Bhutan’s government officials and professionals/entrepreneurs, across various fields. Bhutan has been allotted 325 in-person training slots for upgrading administrative and technical skills of government officials and private sector employees under India’s ITEC program. In addition, Bhutanese civil service officers annually receive training at premier Indian administrative and other special training institutions and academies.

India provides over 1,200 scholarships to Bhutanese students annually for studying in India across a wide range of disciplines including medicine, pharmacy, and engineering among others, under various scholarship schemes. During the King of Bhutan’s visit to India in November, the leaders jointly announced the decision to double the outlay under Ambassador’s Scholarship Scheme from INR 4 crores to INR 8 crores and allocate additional MBBS seats in medical colleges in Assam for the Bhutanese students. India and Bhutan continue to collaborate on faculty-exchange of STEM teachers. Under the Youth Exchange Programme, an NCC delegation visited Bhutan to participate in Bhutan’s National Day Celebrations on 17 December.

Space Cooperation

A delegation led by the Secretary (Department of Space) and the Chairman of Indian Space Research Organisation (ISRO) paid an official visit to Bhutan from 13-14 March to inaugurate the ground earth station of the India-Bhutan SAT.

In September, ISRO organised a technical training of remotesensing technologies for the officials of the Royal Government of Bhutan and discussed the potential applications of remotesensing technology in governance with the Executive Forum of Secretaries of the Royal Government of Bhutan and officials of the King’s Secretariat. At present, India and Bhutan are working on a Joint Action Plan on Space Cooperation.

Cultural Cooperation

The India Bhutan Foundation (IBF) continues to support the Bhutan Echoes-Drukyul’s Literature Festival, held under the patronage of the Queen Mother Gyalyum Dorji Wangmo Wangchuck. The annual Bhutan Echoes was held from 04-06 August in Thimphu. The 21st IBF meeting held in Thimphu on 04 August approved 12 projects across a range of sectors such as culture, arts, environmental conservation, sports, film and academic exchanges.

A delegation of senior Bhutanese Buddhist monks from Bhutan’s Central Monastic Body visited India in October to enhance shared bilateral linkages to Buddhist cultures and traditions. The visit was facilitated under the aegis of the International Buddhist Confederation (IBC).

Miscellaneous

Two diplomats from Bhutan attended the six-month Induction Training Programme (ITP) along with IFS officer-trainees of the 2022 batch from December 2022 to June 2023.

Buddha Bhoomi Vandan Yatra: Twenty three delegates from eleven Countries namely, Bhutan, Cambodia, Japan, Laos, Sri Lanka, Taiwan, Thailand, Vietnam, Malaysia, Nepal and South Korea from 25 October – 3 November 2023 participated in the Buddha Bhoomi Vandan Yatra.

B. Budget allocation to Bhutan under Technical and Economic Cooperation

C. Details of Incoming Visits by Heads of State / Heads of Government / Vice Presidents / Foreign Ministers and Equivalent to India in 2023-24

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