More than an exercise in diplomatic tradition, Modi’s visit underscored the multifaceted and evolving cooperation between India and Bhutan, affirming a model of bilateral engagement rare in the contemporary world, writes Dr Rakesh Sharma
Prime Minister Narendra Modi’s recent state visit to Bhutan on November 11-12, 2025, stands as a milestone in the ongoing visits of India-Bhutan relations. Commemorating the 70th Birth Anniversary of His Majesty the Fourth Druk Gyalpo, Jigme Singye Wangchuck, the visit reflected both the ceremonial warmth and strategic depth that characterize the partnership between these two Himalayan neighbours. More than an exercise in diplomatic tradition, Modi’s visit underscored the multifaceted and evolving cooperation between India and Bhutan, affirming a model of bilateral engagement rare in the contemporary world.
The itinerary of Prime Minister Modi was steeped in Bhutanese cultural and spiritual significance. As the Guest of Honour, he participated in celebrations in Changlimithang, joined the Bhutanese people at the Global Peace Prayer Festival in Thimphu, and offered prayers to the revered Holy Piprahwa Relics of Lord Buddha from India, made available for public veneration at this time. His engagement at these events reaffirmed the deep-rooted spiritual ties between peoples, which augment the official ties between governments.
Strategically, the visit was highlighted by the joint inauguration of the 1020 MW Punatsangchhu-II Hydroelectric Project, an enduring symbol of mutually beneficial cooperation. Developed collaboratively by India and Bhutan, this project reinforces both nations’ commitment to energy security and sustainable development, and will be a key driver of Bhutan’s economy for years to come. Prime Minister Modi’s audience with the King of Bhutan, Jigme Khesar Namgyel Wangchuck, and substantive meetings with Prime Minister Tshering Tobgay further deepened the trust and understanding between the two governments.
The India-Bhutan relationship has always been anchored in development partnership. As Bhutan’s largest development and trading partner, India has committed substantial investment for Bhutan’s 13th Five-Year Plan, with a total outlay of approximately $1.2 billion USD. This includes around $840 million USD earmarked for Project-Tied Assistance projects, $120 million USD for High Impact Community Development Projects, $180 million USD for the Economic Stimulus Programme, and $60 million USD as Programme Grant. Such support is not episodic but enduring—during the previous (12th) Five-Year Plan, Indian assistance amounted to about $540 million USD, constituting 73% of Bhutan’s total external grants. In the energy domain, hydropower cooperation is the centerpiece of bilateral engagement. India imports clean energy from Bhutan, supporting its own energy needs while providing Bhutan with a steady stream of revenue. The commissioning of Punatsangchhu-II adds a new chapter to a shared saga that began with Chukha, Kurichhu, and Tala hydroelectric projects, cumulatively generating over 1,600 MW and accounting for nearly half of Bhutan’s export earnings.
Trade relations are equally robust. Over 80% of Bhutan’s trade is with India, and the volume of merchandise trade tripled over the last decade from approximately $60 million USD in 2014-15 to about $230 million USD in 2023-24, illustrating the vibrancy and growth of commercial ties. The duty-free access for Bhutanese goods, the integration of digital infrastructure, and joint efforts in establishing cross-border connectivity have substantially raised Bhutan’s profile and capacities.
India is also a net security provider to Bhutan. The treaty framework, especially the 2007 India-Bhutan Treaty of Perpetual Friendship ensures close security cooperation, which was most visibly demonstrated during the Doklam standoff in 2017 when India intervened to safeguard Bhutan’s territorial integrity. Bhutan’s unique geostrategic location as a buffer between India and China intensifies the strategic imperative for India to nurture and strengthen ties with Thimphu, making the Himalayan kingdom vital to Indian interests in the wider South Asian context.
Beneath and beyond the state-centric dimensions, India and Bhutan are united by profound cultural commonalities. Both nations are home to rich Buddhist traditions, and their shared spiritual heritage is a foundation for interpersonal and institutional links. Educational exchange programs allow hundreds of Bhutanese students to study in prestigious Indian institutions, while joint conservation initiatives such as the Transboundary Manas Conservation Area, attest to the shared commitment to environmental stewardship.
Bhutan’s global reputation as a champion of Gross National Happiness and a pledge to remain carbon-negative has ensured strong Indian partnership in eco-friendly development. India provides technical and financial support in renewable energy, forest conservation, and sustainable tourism, enabling Bhutan to stay at the forefront of climate and ecological concerns. In a world beset by environmental anxieties, such cooperation sets a benchmark in synergizing sustainable growth with traditional values.
Looking ahead, new vistas are opening in digital connectivity, technology transfers, cross-border railways, and community-level development projects. India’s support for Bhutan’s “Digital Drukyul” initiative promises to bring cutting-edge digital infrastructure to remote corners. Major cross-border infrastructure works, like Project DANTAK, not only contribute to Bhutan’s national integration, but also connect both countries more closely at the grassroots level. These advancements are fundamental to building a truly 21st-century partnership.
Prime Minister Narendra Modi’s visit to Bhutan in November 2025 was a reaffirmation of the core values and interests binding the two nations. India and Bhutan continue to demonstrate what purposeful, principled, and people-centered diplomacy can achieve when animated by trust, respect, and shared vision. In a world of shifting alliances and transactional bargains, it is this enduring partnership rooted in history but adapted for the future that offers both countries a stable foundation and a beacon for South Asia.
