Prime Minister’s Visit to Bhutan: Strengthening India–bhutan Relations

Why in the News?

Prime Minister Shri Narendra Modi paid an official visit to Bhutan and received an audience with His Majesty the King of Bhutan, Jigme Khesar Namgyel Wangchuck in Thimphu. The visit aimed to deepen the long-standing bilateral partnership, review development cooperation, and inaugurate major energy and infrastructure projects.

Key Highlights of the Visit

Audience with His Majesty the King of Bhutan

• PM Modi met His Majesty Jigme Khesar Namgyel Wangchuck in Thimphu.
• Both leaders discussed ways to enhance the special ties of friendship and cooperation.
• Regional and global issues of mutual interest were reviewed.
• His Majesty conveyed condolences on the tragic incident in Delhi.

Cultural and Spiritual Connect

• The leaders offered prayers before the Holy Piprahwa Relics of Lord Buddha from India, currently enshrined at Tashichhodzong.
• The exposition coincided with the 70th Birth Anniversary of the Fourth King and the Global Peace Prayer Festival.
• The event symbolised the deep Buddhist civilizational heritage shared by both nations.

Inauguration of Punatsangchhu-II Hydroelectric Project

• PM Modi and His Majesty jointly inaugurated the 1020 MW Punatsangchhu-II Hydroelectric Project.
• The project marks a major milestone in India–Bhutan energy cooperation and contributes to socio-economic development in both countries.

About the Punatsangchhu-II Hydroelectric Project

Significance of the Project

Energy Cooperation

• Major milestone in the India–Bhutan clean energy partnership.
• Serves as a model for regional hydropower trade.

Economic Benefits for Bhutan

• Hydropower contributes 30% of Bhutan’s GDP and 70% of exports.
• Enhances Bhutan’s revenue and long-term financial stability.

Sustainability and Green Growth

• Supports Bhutan’s carbon-negative commitment.
• Aligns with India’s clean and renewable energy goals.

Mutual Energy Security

• India receives reliable, clean hydropower.
• Bhutan gains assured export income—strengthening interdependence.

Technological and Capacity Support

• India provided technical expertise, financing, and skilled manpower for the project.

Signing of MoUs

Three MoUs were exchanged in the areas of:

• Renewable Energy
• Mental Health Services
• Healthcare Cooperation

These aim to strengthen institutional cooperation and people-centric development.

Financial Assistance

• India announced a ₹4000 crore concessional Line of Credit for Bhutan.
• The funds will support energy, infrastructure, and strategic development projects.

Significance of the Visit

Deepening Bilateral Relations

• Reinforces the 2007 India–Bhutan Friendship Treaty.
• Strengthens India’s Neighbourhood First and Act East policies.

Strategic Importance

• Bhutan’s location between India and China makes its stability crucial for India’s Himalayan security.
• Sustained engagement counters Chinese influence amid Bhutan–China boundary talks.

Energy Cooperation

• Hydropower remains the backbone of India–Bhutan economic ties.
• Adds to projects like Tala, Chukha, and Mangdechhu.

Cultural Diplomacy

• Joint prayers before the Buddha relics highlight deep civilizational ties.
• Enhances India’s soft power footprint.

Development Partnership

• India continues as Bhutan’s largest and most reliable development partner.
• The new Line of Credit supports Bhutan’s goal of becoming a High-Income and Carbon-Negative Economy aligned with its GNH philosophy.