India, Bhutan review development cooperation under 13th 5-year plan; 12 new projects worth US$ 34.41 million approved
- IBEF
- August 3, 2026
India and Bhutan reviewed the progress of their development partnership under Bhutan's 13th Five-Year Plan (2024-29) during the 5th India-Bhutan Development Cooperation Talks, approving 12 new Project Tied Assistance (PTA) projects worth Rs. 332 crore (US$ 34.41 million). Indian Foreign Secretary Mr. Vikram Misri visited Bhutan on July 30-31, 2026, where he co-chaired the talks with Bhutanese Foreign Secretary Mr. Pema Lektup Dorji. The two sides reviewed cooperation across development partnership, energy, trade and investment, connectivity and regional issues, while assessing the implementation of India's Rs. 10,000 crore (US$ 1.04 billion) support package for Bhutan's 13th Five-Year Plan. With the approval of the new projects, the total number of PTA projects under the current Plan has increased to 82, with a cumulative outlay of Rs. 6,860 crore (US$ 710.95 million). The newly approved projects span infrastructure, healthcare, agriculture, urban development and disaster management, reflecting the broad scope of bilateral development cooperation.
India has also released Rs. 1,250 crore (US$ 129.55 million) under the Economic Stimulus Programme (ESP), Rs. 735.20 crore (US$ 76.19 million) for High Impact Community Development Projects (HICDPs) and Rs. 200 crore (US$ 20.73 million) as Programme Grant. During the visit, the two Foreign Secretaries virtually inaugurated the Thimphu Ecological Park and Olakha Park and handed over 45 electric vehicles under the "Accelerate e-Mobility Uptake in Bhutan" project. The two sides also exchanged an Umbrella Line of Credit Agreement between the Royal Government of Bhutan and the Export-Import Bank of India (EXIM Bank) to operationalise a concessional Rs. 4,000 crore (US$ 414.55 million) Line of Credit for energy projects, along with a Memorandum of Understanding between AIIMS New Delhi and the Khesar Gyalpo University of Medical Sciences of Bhutan to strengthen cooperation in medical research, education and training. Both countries reaffirmed their commitment to further strengthening their longstanding development partnership and agreed to hold the next Development Cooperation Talks in New Delhi.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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