Embassy of IndiaThimphu

Bhutan in MEA Annual Report for the year 2024-25

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

India and Bhutan enjoy exemplary bilateral relations, characterised by mutual trust, understanding and goodwill at all levels and excellent people-to-people contacts. The bilateral relations witnessed steady progress across all sectors of cooperation, including trade and economic connectivity, energy, skill development and capacity building, development cooperation, sports and youth exchanges, education, health, judiciary, environmental conservation, technology, and people-to-people contacts.

A large number of high-level exchanges took place throughout the year including the State Visit of Prime Minister to Bhutan, official visit of the King of Bhutan Jigme Khesar Namgyel Wangchuck to India, official visits of Prime Minister of Bhutan to India and other Ministerial- level visits. The visits witnessed the publication of three joint statements, imparting political direction and momentum to the bilateral partnership.

Development cooperation with Bhutan expanded further as Bhutan entered into its 13th Five Year Plan (FYP) from 2024 to 2029, with the Indian government doubling its assistance to Bhutan for the plan. Hydropower projects under construction in Bhutan with India’s assistance also witnessed progress, with the Puntasangchhu II hydropower project nearing completion. Both sides also agreed to take forward the mutually beneficial energy cooperation through a Joint Vision Statement on Energy Partnership.

Trade and economic cooperation continued to expand, as several key decisions were taken during Commerce Secretary-level talks held in September. The opening of the ICP at Darranga in Assam and progress on establishing rail links provided positive momentum to cross-border connectivity initiatives.

Cooperation in the judiciary sector intensified with the visit of the Chief Justice of India (CJI) to Bhutan. Sectors such as health, sports and youth initiatives, education and capacity building and training also witnessed progress during the year.

High level exchanges

Prime Minister paid a landmark State Visit to Bhutan on 22-23 March. He was conferred with the “Order of the Druk Gyalpo”, Bhutan’s highest civilian honour by the King of Bhutan Jigme Khesar Namgyel Wangchuck. During the visit, seven MoUs were signed in areas including energy efficiency, supply of petroleum products, sports and youth, pharmacopoeia, space, digital network and food safety.

The King of Bhutan paid an official visit to India on 05-06 December and met Prime Minister, EAM and senior officials of the Indian government. Prime Minister of Bhutan Dasho Tshering Tobgay made four official visits to India this year, including his first visit overseas to India in March and as an Honoured Guest at the swearing-in ceremony of the Prime Minister in June. In November, he attended the inauguration of the ICP at Darranga, Assam and participated in the International Cooperative Alliance (ICA)’s Global Cooperatives Conference held in New Delhi.

The CJI paid a visit to Bhutan on 07-10 October. During his visit, the CJI graced the 3rd Graduation Ceremony of the Jigme Singye Wangchuck School of Law in Bhutan. Four MoUs, including the MoU between the two Supreme Courts on judiciary cooperation were signed in the area of legal cooperation.

Chief Minister of Assam visited Bhutan on 16-19 December to participate in Bhutan’s National Day celebrations and for furthering Assam-Bhutan cooperation.

In 2024, India and Bhutan continued to strengthen bilateral cooperation in all sectors through regular Ministerial meetings. Minister of Foreign Affairs and External Trade of Bhutan Lyonpo D.N. Dhungyel visited India in February for the Raisina Dialogue, and participated in the 2nd Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Foreign Ministers’ Retreat held in July. Minister Dhungyel met EAM during both his visits.

Minister of Energy and Natural Resources of Bhutan Lyonpo Gem Tshering visited India in July for the Project Authority Meeting of the Punatsangchhu-II Hydro Electric Project. During his second visit to the country on 14-18 October, he held a meeting with the Minister of Power and of New and Renewable Energy.

The year also witnessed several incoming visits by Ministers and senior government officials from Bhutan. Minister of Infrastructure and Transport Lyonpo Chandra Bahadur Gurung visited India in September for the 2nd AsiaPacific Ministerial Conference on Civil Aviation. Minister of Agriculture and Livestock Lyonpo Younten Phuntsho visited India in September for the 3rd World Food India event held in New Delhi. Minister of Finance Lyonpo Lekey Dorji visited India for the 3rd Kautilya Economic Conclave in October. Minister Dorji also attended the Global Economic Policy Forum at New Delhi in December. Minister of Health Lyonpo Tandin Wangchuk visited India for the 77th session of the WHO Regional Committee for South East Asia in October. Minister of Industry, Commerce and Employment Lyonpo Namgyal Dorji visited India in December for the CII Partnership Summit.

Chief Minister of Assam visited Bhutan on 16-19 December to participate in Bhutan’s National Day and for furthering Assam-Bhutan cooperation.

Foreign Secretary of Bhutan Pema Choden visited India in March to co-chair the 2nd India-Bhutan Development Cooperation Talks (Plan Talks) of Bhutan’s 13th Five Year Plan. In 2024, Foreign Secretary visited Bhutan twice, to co-chair the 3rd meeting of the Plan Talks in July and to participate in the bilateral discussions in November.

Development Cooperation

During the Prime Minister’s visit to Bhutan in March, Government of India committed development support of USD 11.5 billion for Bhutan’s 13th FYP. India’s support will be earmarked for Project Tied Assistance (PTA), HICDPs, Bhutan’s Economic Stimulus Programme (ESP) and Programme Grant. The first tranche of 61 projects under the Indian government’s PTA, amounting nearly USD 576 million was agreed between the two sides during the Plan Talks held in July. The first batch of HICDP projects amounting nearly USD 480 million was agreed between the two sides during the 1st HICDP Committee meeting held in December.

Notable developmental projects completed in 2024 include Gyaltsuen Jetsun Pema Wangchuck Mother and Child Hospital, Thimphu Aquatic Centre, Takti bridge in Chukha and Pangrizampa bridge in Thimphu, Lingzhi Dzong, and upgraded primary boarding schools. In addition, the groundbreaking ceremony of the Rama Centre of Excellence for Cricket and Shooting was held on 01 December.

Trade and Connectivity

India has remained Bhutan’s top trading partner – both as an import source as well as an export destination, accounting for over 80 per cent of Bhutan’s overall trade. India’s total merchandise trade with Bhutan until September 2024 stood at USD 10.28 billion, wherein exports to Bhutan were pegged at USD 7.73 billion and imports stood at USD 2.54 billion.

During Prime Minister’s State Visit to Bhutan on 21-22 March, the countries signed bilateral agreements including a MoU on general supply of POL and related products from India to Bhutan, the Agreement for recognition of official control exercised by Bhutan Food and Drug Authority (BFDA) by Food Safety and Standards Authority of India (FSSAI), and the finalization of text of the MoU on Establishment of rail-links between India and Bhutan. Ministry of Railways is undertaking the Final Location Survey (FLS) for rail links agreed between both sides under the MoU, including the Kokrajhar-Gelephu rail link and Banarhat-Samtse rail link.

A new Framework on Currency Swap Arrangement (FCSA) for the period 2024-27 for the South Asian Association for Regional Cooperation (SAARC) countries including Bhutan, came into effect in June. Bhutan availed the FCSA facility through the INR window introduced under the framework.

Secretary, Commerce visited Bhutan in September to co-chair the India-Bhutan Commerce Secretary Level Meeting (CSLM). Key decisions taken during the CSLM include notification of additional routes for import of Areca nut from Bhutan, notification of additional Point of Entry for import of food items from Bhutan, establishment of border haats along the India-Bhutan border, inclusion of additional species of timber for import from Bhutan and deployment of personnel for Phyto Quarantine Inspection Services (PQIS) at Land Customs Station (LCS) Darranga.

In November, an ICP at Darranga (Assam) was inaugurated to facilitate the entry as well as exit of third-country nationals by land route and enhance connectivity and tourism. The opening of the check post was agreed upon last year, during the visit of the King of Bhutan to India.

Bilateral cooperation on Gyalsung- Bhutan’s National Service Program

The Indian government has supported Bhutan’s National Service Programme ‘Gyalsung’ - a special initiative of the King of Bhutan, to equip the Bhutanese youth with critical skills and contribute in nation-building efforts. On 20 January, India signed a MoU with Bhutan, extending a concessionary loan of nearly USD 1.73 billion to build infrastructure for the Gyalsung academies. Earlier, India provided grant assistance of USD 230 million to Bhutan for the Gyalsung programme.

Power and Energy Cooperation

Cooperation in the hydropower sector is a central pillar of India-Bhutan ties. The Joint Vision Document on the India-Bhutan Energy Partnership was issued during the Prime Minister’s visit to Bhutan in March. As per the Vision Document, both sides agreed to enhance the energy partnership and develop new energy projects in the fields of hydro-power, solar and green hydrogen, including through the participation of Indian entities as strategic partners. Nikachhu Hydro-Electric Project (HEP) commenced the export of surplus power through the Indian Energy Exchange in May. An India-Bhutan Renewable Energy Roundtable was held in Thimphu on 28 October, to identify opportunities for collaboration in the area of renewable energy.

At present, India is constructing two hydroelectric projects in Bhutan- Punatsangchhu-I with a capacity of 1200 MW and Punatsangchhu-II with a capacity of 1020 MW. The first two units of Punatsangchhu-II HEP were commissioned in December.

Environment and Climate Change

The 1st Joint Working Group on Environment was held in Bhutan on 21 October. The deliberations focused on creating institutional linkages and strengthening partnerships in the field of environment, waste management, and climate.

Space Cooperation

During Prime Minister’s visit to Bhutan in March, the Indian Space Research Organisation (ISRO) and GovTech Agency of Bhutan signed a Joint Plan of Action (JPoA) which provides a concrete roadmap for bilateral cooperation in the space sector. The first meeting of the India–Bhutan JWG under the JPoA on Space Cooperation was held on 06 September in Thimphu. In consonance with the JPoA, ISRO allocated an additional 16 MHz bandwidth to Bhutan on the South Asia Satellite.

Education and Capacity Building

Bhutan is allotted 325 in-person training slots for upgrading administrative and technical skills of government officials and private sector employees under ITEC. Bhutanese civil service officers receive training at premier Indian administrative as well as other special training institutions and academies every year. Over 1,200 scholarships are being provided annually by the Indian government to Bhutanese students for studying in India. The Indian government also recruited 24 new Indian teachers in STEM subjects for teaching in Bhutanese schools this year. Under the Youth Exchange Programme, a Bhutanese Scouts delegation visited India for the Republic Day in January and a National Cadet Corps (NCC) delegation participated in Bhutan’s National Day celebrations, held in December.

Sports Cooperation

Sports and youth connect have emerged as a key pillar of the India-Bhutan partnership. During the Prime Minister’s visit to Bhutan, both sides concluded a MoU on Cooperation in Sports and Youth, aimed to further people-to-people ties between the two countries by advancing linkages between sports agencies of both sides and conducting sports activities/programmes. Two delegations from Bhutan visited sporting facilities in India, including the Himachal Pradesh Cricket Association Stadium in Dharamshala.

Miscellaneous

Mr. Lungtaen Gyatso, President, of the College of Language and Culture Studies, Royal University of Bhutan was conferred with the Bharat Mitra Samman –Indology 2023 in Bhutan on 10 May 2024.

Two diplomats from Bhutan attended the six-month Induction Training Programme (ITP) along with IFS officer-trainees of the 2023 batch from 06 November 2023 to 11 May 2024.

B. Budget allocation to Bhutan under Technical and Economic Cooperation

C. List of MoUs signed between India and Bhutan in 2024

D. Details of Incoming Visits by Heads of State / Heads of Government / Vice Presidents / Foreign Ministers and Equivalent to India in 2024-25

E. Details of Outgoing Visits by President / Vice President / Prime Minister / EAM in 2024-25

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