India and Bhutan Sign 4,000 Crore Energy Credit Agreement

Indian External Affairs Minister Subramanyam Jaishankar conducted an official visit to Bhutan from September 16 to 18, 2026, to strengthen bilateral ties under India's Neighbourhood First policy. The visit culminated in the signing of a 4,000 crore rupee concessional Line of Credit from the Exim Bank of India to fund energy projects, alongside a 10,000 crore rupee commitment for Bhutan's 13th five-year plan.

During the mission, Jaishankar met with King Jigme Khesar Namgyel Wangchuck and Prime Minister Tshering Tobgay. Key infrastructure milestones included the inauguration of the 1020 MW Punatsangchhu-II Hydroelectric Project, the resumption of the Punatsangchhu-I project, and the laying of the foundation stone for the 500 KW Lunana Hydropower Project in Gasa. Jaishankar also inaugurated the Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar and the Jaganathan Bridge in Samdrup Jongkhar.

Technological and social cooperation expanded with the launch of Phase-II of international UPI, enabling two-way digital payments between the two nations. Jaishankar delivered 54 Indian-made electric vehicles to support sustainable transport and 43 pureline Jersey cows to the National Cattle Breeding Centre in Bumthang. The two nations also signed a memorandum to extend the Nehru Wangchuck Scholarship Scheme.

Diplomatic outcomes included Bhutan's ratification of the International Big Cat Alliance Framework Agreement and its support for India's 2028-2029 UN Security Council bid. To support the Gelephu Mindfulness City project, India committed to establishing an Immigration Check Post at Hatisar, Assam.