India, Bhutan review development partnership; sign ₹4,000-crore LoC agreement
India and Bhutan reviewed the progress of New Delhi-supported development projects in the Himalayan nation during a high-level talk, as the two sides signed a
India and Bhutan reviewed the progress of New Delhi-supported development projects in the Himalayan nation during a high-level talk, as the two sides signed a concessional line of credit agreement worth ₹4,000 crore and expanded cooperation in the health sector. The fifth India-Bhutan Development Cooperation Talks, co-chaired by Foreign Secretary Vikram Misri and his Bhutanese counterpart Dasho Pema Lektup Dorji on Thursday (July 30, 2026), focused on the implementation of projects under Bhutan's 13th Five-Year Plan, the Indian Embassy in Bhutan said in a social media post. The two sides reviewed the progress and implementation of India-supported projects across diverse sectors, it said. Bhutan appreciated India's significant support and its contribution to the country's socio-economic development, the mission said.
During the talks, both sides reviewed the overall progress and implementation of India's support of ₹10,000 crore for Bhutan’s 13th FYP period (2024-29), the Ministry of External Affairs (MEA) said in a joint press release. This support covers Project Tied Assistance (PTA) projects, High Impact Community Development Projects (HICDP), Economic Stimulus Programme (ESP) and the Programme Grant, it said. A total of 12 new PTA projects amounting to ₹332 crore were approved, covering sectors such as infrastructure, healthcare, agriculture, urban amenities and disaster management, the release said. With this, a total of 82 PTA projects have been approved under the 13th FYP, amounting to ₹6,860 crore. India has also released ₹1,250 crore towards ESP, ₹735.20 crore towards HICDPs and ₹200 crore towards Programme Grant.
"The meeting reviewed the progress in utilisation of these funds," the release said. The two foreign secretaries also virtually inaugurated the Thimphu Ecological Park and the Olakha Park, developed under the "Green Infrastructure and Open Spaces in Thimphu" project funded by India as part of bilateral economic development. An agreement for a concessional line of credit of ₹4,000 crore (Nu 40 billion) was exchanged between the Export-Import Bank of India and Bhutan's Ministry of Finance to support development initiatives in the country, the embassy said. The two sides also exchanged a Memorandum of Understanding (MoU) for cooperation in health education and research between the All India Institute of Medical Sciences (AIIMS) and Bhutan's Khesar Gyalpo University of Medical Sciences, it said.
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