Is Bhutan Ready for PM Modi's Visit to Strengthen Economic Ties?

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Is Bhutan Ready for PM Modi's Visit to Strengthen Economic Ties?

Synopsis

As Bhutan prepares to host Prime Minister Modi, the focus is on enhancing bilateral economic relations through significant projects. This visit coincides with a major anniversary and promises to unveil transformative energy and connectivity initiatives that could reshape the region's economic landscape.

Key Takeaways

  • PM Modi's visit aims to enhance economic ties with Bhutan.
  • The inauguration of the Punatsangchhu-II Hydropower Project is a key highlight.
  • New cross-border railway lines will boost connectivity.
  • India's financial support underlines its role as Bhutan's largest development partner.
  • Visit coincides with a significant royal anniversary.

New Delhi, Nov 10 (NationPress) Bhutan is preparing to host Prime Minister Narendra Modi for a two-day trip to the majestic Himalayan Kingdom. This visit is focused on further enhancing bilateral economic relations through significant energy and connectivity initiatives, as reported by Bhutan Live.

The visit, which has yet to be officially confirmed by India’s Ministry of External Affairs, will also align with the momentous 70th birth anniversary of Bhutan's former King, Jigme Singye Wangchuck, known as the revered Fourth Druk Gyalpo.

A major highlight of PM Modi's journey will be the inauguration of the Punatsangchhu-II Hydropower Project, a landmark project with a capacity of 1,020 MW, co-financed by India via grants and concessional loans. This initiative could nearly double Bhutan's electricity production, allowing the clean energy to be exported to India, significantly boosting Bhutan's revenue streams.

The Prime Minister is also anticipated to assess the development of two new cross-border railway lines being collaboratively constructed by India and Bhutan. The Kokrajhar–Gelephu line will link Assam to southern Bhutan, whereas the Banarhat–Samtse line will connect West Bengal to Bhutan's expanding industrial region in the southwest. These projects, announced in September, are set to enhance cross-border mobility.

The Kokrajhar–Gelephu line, which will feature six stations and over 90 bridges, has a budget exceeding Nu 4,000 crore (Bhutanese Ngultrum currency) and is expected to be completed within four years. Its terminal, Gelephu, is pivotal to the visionary Gelephu Mindfulness City, an economic and spiritual center envisioned by His Majesty The King.

On the other hand, the Banarhat–Samtse line, focusing on freight, will aid industrial towns in the Samtse district, enabling the economical export of goods such as quartzite, dolomite, and ferro-silicon.

India stands as Bhutan's largest development ally, providing steadfast support through various Five-Year Plans. Under Bhutan’s current 13th Plan (2024-29), India has committed Nu 10,000 crore, reinforcing its role in community development and national progress.

Bhutan’s Prime Minister Tshering Tobgay has made two visits to New Delhi this year, reflecting the ongoing engagement and shared commitment to robust bilateral relations.

Point of View

Bhutan's preparations for Prime Minister Modi’s visit highlight a significant milestone in bilateral relations. This visit is an opportunity to reinforce the enduring partnership between India and Bhutan, showcasing India's commitment to supporting Bhutan's developmental goals while fostering regional stability and prosperity.
NationPress
10/11/2025

Frequently Asked Questions

What is the purpose of PM Modi's visit to Bhutan?
The visit aims to strengthen bilateral economic relations through transformative energy and connectivity projects.
What key projects will be inaugurated during this visit?
The inauguration of the Punatsangchhu-II Hydropower Project is a significant highlight, along with the review of two new cross-border railway lines.
What is the importance of the Punatsangchhu-II project?
This project, co-financed by India, has the potential to nearly double Bhutan's electricity generation and significantly boost its revenue through energy exports.
How does India support Bhutan's development?
India remains Bhutan's largest development partner, pledging substantial financial support under various Five-Year Plans.
What anniversary coincides with PM Modi's visit?
The visit coincides with the 70th birth anniversary of Bhutan's former King, Jigme Singye Wangchuck.
Nation Press