This article covers India's development partnership with Bhutan and cooperation in specific sectors: support for Bhutan's Five Year Plans, hydropower, space, environment, knowledge networks, health, training and Bhutan's National Service Programme. It is based on the Ministry of External Affairs (MEA) brief of June 2026, and the commitments and amounts are given as of that brief.

Support for Bhutan's Five Year Plans

The brief states that India has partnered with Bhutan in its socio-economic development since Bhutan's first Five Year Plan in 1961, in line with the priorities of the people and the Royal Government of Bhutan. India's development assistance is coordinated under the Bilateral Development Cooperation Talks (Plan Talks), chaired by the two Foreign Secretaries.

For Bhutan's 13th Five Year Plan period (July 2024-June 2029), the Government of India has committed INR 10,000 crores. According to the MEA brief of June 2026, the following are under implementation or have been disbursed under this commitment:

  • 71 Project Tied Assistance projects, amounting to approx. INR 6,650 crores, under implementation.
  • 571 High-Impact Community Development Projects (HICDP), amounting to approx. INR 846 crores, under implementation.
  • INR 1250 crores disbursed out of a commitment of INR 1500 crores towards Bhutan's Economic Stimulus Programme (ESP).
  • INR 200 crores disbursed out of a commitment of INR 500 crores as direct budgetary support (programme grant).

At the 5th Plan Talks held in July 2026, 12 new Project Tied Assistance projects worth INR/Nu. 3,320 million (332 crore) were approved, bringing the total approved under the 13th Five Year Plan to 82 projects amounting to INR/Nu. 68,600 million (6,860 crore).

The projects span infrastructure development, roads, digital connectivity, energy, agriculture, livestock, ICT, health, education, human resource development and urban development. The HICDPs are implemented at community level with a short gestation period, and cover drinking water supply networks, irrigation canals, farm roads, basic health units and other rural infrastructure.

Hydropower

The brief describes long-standing cooperation in the hydropower sector. The two governments have jointly constructed five major hydroelectric projects (HEP) in Bhutan, totalling 3156 MW, which the brief puts at about 90% of Bhutan's installed electricity generation capacity:

  • 336 MW Chukha HEP (1988)
  • 60 MW Kurichhu HEP (2001)
  • 1020 MW Tala HEP (2007-08)
  • 720 MW Mangdechhu HEP (2019)
  • 1020 MW Punatsangchhu-II HEP (2025)

Mangdechhu HEP was awarded the Brunel Medal for Excellence in Engineering by the Institute of Civil Engineers, London, in 2020. The 1200 MW Punatsangchhu-I HEP is under construction under an inter-governmental framework.

New energy cooperation

A Joint Vision Statement on India-Bhutan Energy Cooperation was signed in 2024, and an MoU on renewable energy cooperation was signed in November 2025. The cooperation envisages new energy projects, trade in electricity, and cooperation in solar energy and green hydrogen.

Several Indian energy entities have engaged with Bhutan for power generation, financing of energy projects and power trade. These include the 600 MW Khorlochhu HEP, the 570 MW Wangchu HEP and the 1125 MW Dorjilung HEP, which are under construction. The International Solar Alliance is cooperating with Bhutan under its country partnership strategy framework.

Space cooperation

The brief calls space an emerging area of cooperation. A Ground Earth Station of the South Asia Satellite was inaugurated in Thimphu in August 2019, enabling Bhutan's Broadcasting Service to broadcast television across Bhutan. The first jointly developed India-Bhutan satellite was launched from Sriharikota on 26 November 2022, and the Chairman of the Indian Space Research Organisation (ISRO), Shri S. Somanath, inaugurated its ground earth station in Bhutan in March 2023.

India and Bhutan signed a Joint Plan of Action on Space Cooperation (JPoA) in March 2024, under which India has allocated an additional 16 MHz on the second transponder of the South Asia Satellite for Bhutan's use. The Joint Working Group under the plan first met in Thimphu in September 2024 and met again in Bengaluru in April 2026.

Training programmes for Bhutan's government officials, engineers and students have been held at ISRO facilities in India and at the College of Science and Technology, Phuentsholing. A delegation from ISRO and the Indian Institute of Space Science and Technology, led by ISRO's Scientific Secretary, Mr Ganesh Pillai, visited Bhutan for the Bhutan Space Week in February 2026.

Environment and knowledge networks

The first India-Bhutan Joint Working Group on Environment met in Thimphu in October 2024, and the second in April 2026. The two sides discussed cooperation on environment and climate change, trading of carbon credits and institutional linkages, covering biodiversity, waste management and training.

The integration of Bhutan's DrukREN with India's National Knowledge Network supports e-learning cooperation, linking universities, research institutions, libraries, and health-care and agricultural institutions. The network provides 5 GBPS bandwidth to 28 active DrukREN members, including universities, colleges and a hospital, and benefits more than 10,000 users.

Health

India has supported health infrastructure in Bhutan, including the Jigme Dorji Wangchuck National Referral Hospital in Thimphu. The two Health Ministries signed an MoU to guide cooperation in the sector in November 2025. An MoU between the PEMA Secretariat and NIMHANS, Bengaluru supports long-term capacity building for mental health services, and Indian nurses support healthcare facilities in Bhutan.

Training

Under the Indian Technical and Economic Cooperation (ITEC) programme, about 325 seats are offered to Bhutan annually for training at institutions in India. In the last decade, more than 3,000 Bhutanese nationals have attended ITEC programmes in India. About 20 Bhutanese Civil Service personnel take part each year in the Foundation Course at LBSNAA, Mussoorie, at the Foreign Service Academy SSIFS, Delhi, and in service-specific training at Indian Government academies.

Gyalsung National Service Programme

Gyalsung, Bhutan's National Service Programme, is an initiative of His Majesty the King of Bhutan to train young people to contribute to nation-building. Under an MoU signed in January 2024, India provided concessionary financing of INR 1500 Crore for the Gyalsung Infrastructure Project. In February 2023, India gave an initial grant of INR 200 Crore for the Desuung for Gyalsung programme.

Master trainers for the project have attended Training of Trainers courses at Indian institutions. India has also supported training for Bhutan's Desuung (volunteers for peace) programme.