THIMPHU: India has released the fifth instalment of Rs 250 crore to Bhutan under the Economic Stimulus Programme (ESP), reaffirming its commitment to supporting the neighbouring country’s economic recovery and long-term development.
The cheque was formally handed over by India’s Ambassador to Bhutan, Sandeep Arya, to Bhutan’s Minister for Foreign Affairs and External Trade, Lyonpo D.N. Dhungyel, according to an official statement issued by the Embassy of India in Bhutan.
With the latest release, India has disbursed a total of Rs 1,250 crore out of its pledged Rs 1,500 crore for the Economic Stimulus Programme under Bhutan’s 13th Five-Year Plan (2024-2029). The initiative forms part of India’s broader development partnership with Bhutan aimed at promoting sustainable growth and strengthening key sectors of the economy.
During the ceremony, Foreign Minister Dhungyel expressed appreciation to the Government of India for its continued financial support, saying the programme has significantly contributed to Bhutan’s post-pandemic economic revival. He noted that the stimulus has benefited farmers, students, young people, Desuups, start-ups, small and medium enterprises, as well as the hospitality, tourism and creative sectors.
The minister also highlighted India’s approval of Rs 250 crore for Bhutan’s National Fuel Price Smoothening Framework, which has helped cushion the impact of global fuel price fluctuations and supported economic stability across the country.
Ambassador Arya said India remains committed to implementing its development cooperation projects with Bhutan efficiently and ensuring timely release of funds under the 13th Five-Year Plan. He said assistance is being provided across multiple areas, including project funding, high-impact community development initiatives, programme grants and the Economic Stimulus Programme.
Besides the latest ESP tranche, the Ambassador handed over cheques worth Rs 46.4 crore for three major capacity-building and education-related initiatives.
An amount of Rs 33.7 crore has been allocated for Professional Development and Immersion Programmes designed to enhance the skills of teachers, counsellors and education leaders, with the objective of improving the quality of school education across Bhutan.
Another Rs 6.74 crore has been sanctioned for the Digital Skilling Programme, which aims to expand digital literacy by providing basic and intermediate-level training to nearly one lakh citizens across all Gewogs through Bhutan’s GovTech initiative.
Additionally, Rs 5.97 crore has been earmarked to support the recruitment of Science, Technology, Engineering and Mathematics (STEM) teachers in Bhutanese schools, helping strengthen the country’s education system.
India and Bhutan share a long-standing development partnership, with New Delhi committing Rs 10,000 crore to support Bhutan’s 13th Five-Year Plan through project assistance, community development projects, programme grants and economic support measures.
According to the Indian Embassy, around Rs 3,400 crore has already been released within the first two years of the plan period, reflecting the steady pace of implementation.
The statement further noted that more than 30 per cent of Bhutan’s capital expenditure in the 2026-27 national budget will be financed through grants provided by India, underscoring New Delhi’s role as Bhutan’s leading development partner.
India reiterated its commitment to maintaining timely financial assistance and expanding cooperation in line with the enduring friendship and strategic partnership shared by the two neighbouring countries.