India Provides Rs 4,000 Crore Credit Line to Bhutan

The Government of India and the Royal Government of Bhutan finalized several major development agreements during the 5th India-Bhutan Development Cooperation Talks in Thimphu on July 30-31, 2026. Indian Foreign Secretary Vikram Misri and Bhutanese Foreign Secretary Dasho Pema Lektup Dorji co-chaired the meetings to review the implementation of Bhutan's 13th Five Year Plan (2024-29).

As part of the engagement, the Export-Import Bank of India and Bhutan's Ministry of Finance signed a concessional line of credit agreement worth Rs 4,000 crore specifically for energy projects. India also approved 12 new Project Tied Assistance projects totaling Rs 332 crore, focusing on healthcare, agriculture, infrastructure, and disaster management. This brings the total number of approved projects under the current plan to 82, with a combined value of Rs 6,860 crore.

Other key outcomes included the delivery of 45 electric vehicles to the Bhutanese government and the virtual inauguration of the Olakha Park and Thimphu Ecological Park. To strengthen medical cooperation, the All India Institute of Medical Sciences and the Khesar Gyalpo University of Medical Sciences signed a memorandum of understanding for health education and research. The partnership remains rooted in the 1949 Treaty of Friendship and Cooperation and India's Neighborhood First policy.