In a bid to strengthen bilateral ties and support Bhutan’s economic development, India has pledged to enhance its backing for Bhutan’s 13th five-year plan, including considering a request for an economic stimulus program. This commitment was conveyed by Prime Minister Narendra Modi to his Bhutanese counterpart Tshering Tobgay during their recent meeting.
Indian support has traditionally been a cornerstone of funding for Bhutan’s five-year plans, with New Delhi providing aid worth Rs. 5,000 crore for the 12th plan. The meeting between the two leaders marked Tobgay’s first foreign visit since assuming office in January and set the stage for Modi’s upcoming visit to Bhutan on March 21-22.
During their discussions, both leaders emphasized the strong friendship between India and Bhutan as a source of regional strength. Modi reaffirmed India’s commitment to supporting Bhutan’s aspirations to become a high-income nation, aligning with the vision of the Bhutanese king.
The development aid from India will focus on infrastructure development, including road, rail, air, and digital connectivity. It will also support sectors such as agriculture, healthcare, education, skilling, and cultural preservation. Modi also appreciated Bhutan’s vision for the “Gelephu Mindfulness City,” a green economic zone aimed at sustainable economic prosperity.
Hydropower cooperation remains a crucial aspect of the bilateral economic partnership, with discussions underway for new projects and the expansion of energy partnerships to include solar, wind energy, hydrogen, and e-mobility initiatives.
Efforts to resolve the border dispute with China are expected to be on the agenda during Modi’s visit to Thimphu. The previous Bhutanese government had signed an agreement with China regarding boundary demarcation, sparking concerns on the Indian side regarding national security, especially for the “chicken’s neck” region that connects northeastern states to the rest of the country.
Sources By Agencies