India Agrees To Consider Providing Rs 1,500 Crore Economic Stimulus To Bhutan

India has agreed to positively consider providing Rs 1,500 crore to Bhutan as part of the Economic Stimulus Programme in the next 18 months, the two governments said on Saturday at the end of Foreign Secretary Vikram Misri's visit and his wide-ranging talks with the Himalayan nation's leadership.

Misri, who was on his first foreign visit within days of his taking charge last week, reviewed the implementation modalities and cooperation in diverse areas of the India-Bhutan development partnership with his Bhutanese counterpart Aum Pema Choden.

The joint press release highlighted the exemplary partnership characterised by trust, goodwill and mutual understanding at all levels, strong bonds of friendship and close people-to-people contacts and said, the two sides held wide-ranging discussions on all aspects of bilateral cooperation.

The issues covered under the bilateral cooperation include development partnership, energy, trade and investment, connectivity and trade infrastructure, technology, people-to-people ties, as well as other regional issues of mutual importance, the joint press release issued by New Delhi and Thimphu said.

“The Royal Government informed the Government of India of the activities proposed to be conducted under the Economic Stimulus Programme (ESP). The Indian side agreed to positively consider frontloading the full amount of Nu 15 billion i.e. Rs 1,500 crore of ESP in the first one and half years subject to progress on implementation of proposals,” the release said.

Misri, who was here for a two-day official visit at the invitation of his counterpart Aum Pema Choden, received an audience with Jigme Khesar Namgyel Wangchuck, the King of Bhutan; called on Dasho Tshering Tobgay, Prime Minister and D N Dhungyel, Minister of Foreign Affairs and External Trade on Friday.

On Saturday, Misri and Choden co-chaired the 3rd India-Bhutan Development Cooperation Talks – commonly called ‘Plan Talks’ – of the 13th Five Year Plan, which focus on developmental cooperation and mutual interests.

"Foreign Secretary @VikramMisri & Foreign Secretary Aum Pema Choden co-chaired 3rd Development Cooperation Talks of the 13th Five Year Plan,” The Embassy of India in Thimphu posted on X.

“Reviewed implementation modalities & cooperation in diverse areas of development partnership under 13 FYP period,” it said.

The two sides expressed satisfaction at the large number of Bhutan-India development projects implemented under the 12th FYP and the two Foreign Secretaries virtually inaugurated 19 schools in Bhutan, which were constructed during the 12th FYP period.

The Bhutanese side presented the Project Tied Assistance (PTA) proposals as well as the first tranche of the PTA projects to be implemented during the 13th Five-Year Plan period, the release said.

A total of 61 projects amounting Nu 49.58 billion (Rs 4,958 crore), covering sectors such as connectivity, infrastructure, energy, skill development, education, health, and cultural heritage were approved by the two sides.

The two sides also approved projects involving capacity building, industrial parks, sports, youth exchanges, digital economy, e-mobility, and space technology were approved by the two sides, in line with the vision of the King of Bhutan, and the priorities of the government and the people of Bhutan, the release said.

Earlier, during the State Visit of Prime Minister Narendra Modi to Bhutan in March this year, he had announced the Government of India’s development support of Nu 100 billion i.e. Rs 10,000 crore for Bhutan’s 13th Five Year Plan period.

Bhutan government conveyed appreciation for the invaluable support that the Government of India continues to provide for Bhutan’s socio-economic development, the release said.

“During the Plan Talks, the two sides discussed various components of the assistance and implementation modalities for GoI-assisted development projects," it added.