India–Bhutan: Strengthening a Time-Tested Friendship
- MGMMTeam
- Sep 6
- 3 min read
India and Bhutan have long shared a relationship marked by mutual trust, cultural closeness, and strategic alignment. External Affairs Minister S. Jaishankar recently reinforced this sentiment during his meeting with Bhutanese Prime Minister Tshering Tobgay in New Delhi, where he described the ties as “unique and time-tested.” He further emphasized that the partnership has only grown stronger over the years and continues to expand in new directions. The meeting, held during Tobgay’s official visit from September 3 to 6, 2025, reflected both countries’ commitment to nurturing their deep-rooted friendship.
Hydropower: The Backbone of Bilateral Cooperation
Hydropower cooperation remains at the heart of India–Bhutan relations. For decades, Bhutan has relied on Indian investment and technical expertise to harness its river systems, with flagship projects like Chukha, Tala, and Mangdechhu forming the backbone of the kingdom’s energy exports. This collaboration has not only powered Bhutan’s economy but also contributed to India’s clean energy needs.
In recent months, the partnership has taken a leap forward with the signing of an agreement between Bhutan’s Druk Green Power Corporation and India’s Adani Group to develop up to 5,000 MW of additional hydropower capacity. These new projects, building on existing ventures like Wangchhu, signal a shared vision of sustainable development and regional energy integration. For India, importing Bhutanese hydropower strengthens its renewable energy portfolio, while Bhutan benefits from revenue and infrastructure development.
Agricultural Cooperation: Strengthening Food Security
Beyond energy, agriculture has emerged as another vital area of collaboration. In August 2025, India and Bhutan signed a memorandum of understanding in Thimphu to expand technical cooperation in farming, livestock, post-harvest management, and digital innovation. This agreement aims to modernize Bhutan’s agricultural sector, enhance food security, and promote rural prosperity.
Adding further depth to this engagement, a five-year partnership between India’s Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) and Bhutan’s National Seed Centre was signed in Siliguri. Under this arrangement, India will supply key fertilizers including urea, NPK, and MOP to support Bhutan’s agricultural needs. The collaboration reflects how India–Bhutan ties extend beyond politics and diplomacy, directly impacting the livelihoods of farmers and rural communities.
Connectivity and Infrastructure: Building Bridges
Infrastructure connectivity has been another enduring symbol of cooperation, exemplified by Project DANTAK. Initiated in 1961, this initiative by India’s Border Roads Organisation has built and maintained Bhutan’s strategic roads, including the lifeline highway between Phuentsholing and Thimphu. It has also contributed to key facilities such as Paro Airport, enabling both mobility and tourism. More recently, innovations like using recycled plastic in road construction highlight how the partnership continues to adapt to modern sustainability challenges.
Strategic and Regional Significance
Bhutan’s geographic position, wedged between India and China, makes its partnership with New Delhi geopolitically vital. The collaboration in hydropower, infrastructure, and agriculture is not merely about economics—it is also about ensuring stability, security, and cultural continuity in the Himalayan region. India’s role as a reliable partner has helped Bhutan balance external pressures while pursuing its development vision, including transformative projects like the Gelephu Mindfulness City. This ambitious urban plan, blending ecology with modern investment, is expected to redefine Bhutan’s economic landscape while remaining rooted in its cultural ethos.
The MGMM Outlook
India and Bhutan’s long-standing bond continues to showcase how trust and cooperation can create a model for regional partnership. The recent visit of Bhutanese Prime Minister Tshering Tobgay to New Delhi highlighted this unique relationship, with External Affairs Minister S. Jaishankar emphasizing its “time-tested” nature. Hydropower remains the cornerstone, with projects like Chukha, Tala, and Mangdechhu shaping Bhutan’s economy while supporting India’s clean energy goals. The new agreement between Bhutan’s Druk Green Power Corporation and India’s Adani Group to develop 5,000 MW of capacity further deepens this collaboration, ensuring mutual gains in sustainability and energy security.
Beyond energy, the partnership is expanding into agriculture and connectivity, reflecting a holistic approach to development. The recent MoUs on fertilizers, seeds, and digital farming modernization demonstrate how cooperation directly benefits Bhutanese farmers and strengthens food security. Meanwhile, infrastructure projects such as Project DANTAK, which has supported Bhutan’s roads since 1961, underline India’s enduring commitment to its neighbor’s progress. With Bhutan’s strategic location and ambitious plans like the Gelephu Mindfulness City, this partnership carries both economic and geopolitical significance, reinforcing stability and shared prosperity in the Himalayan region.
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