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November 6, 2025

India to build first-ever railway links with Bhutan, boosting trade and connectivity

The CSR Journal Magazine

India will construct two cross-border railway lines connecting Assam and West Bengal with Bhutan, marking the first-ever rail connectivity projects with the Himalayan nation. The initiative, costing over Rs. 4,000 crore, is aimed at strengthening trade, economic ties, and regional cooperation between the two neighbours.

Railway Minister Ashwini Vaishnaw and Foreign Secretary Vikram Misri jointly announced the projects on Monday. The proposed lines will link Kokrajhar in Assam with Gelephu in Bhutan and Banarhat in West Bengal with Samtse, covering a total of 89 km of new tracks. The projects are expected to be completed within four years.

The larger Kokrajhar–Gelephu line will stretch 69 km, including 2.39 km inside Bhutan, and is estimated to cost Rs. 3,456 crore. The alignment will include six stations, 29 major bridges, 65 minor bridges, two viaducts, two goodsheds, one road-over-bridge, and 39 road-under-bridges. The Banarhat–Samtse line will span 20 km with two intermediate stations, at an estimated cost of Rs. 577 crore, and is expected to be completed in three years.

Strategic and economic significance

“These will be the first set of railway links with Bhutan,” Misri said, noting that the projects reflect the “exceptional trust, mutual respect, and shared developmental interests” between the two countries. He added that the agreements were finalized during Prime Minister Narendra Modi’s visit to Bhutan last year.

Vaishnaw highlighted the economic significance of the links, pointing out that most of Bhutan’s imports and exports pass through Indian ports. He said that seamless connectivity would not only help Bhutan’s economy grow but also provide better access to global markets, adding that Gelephu and Samtse are central to Bhutan’s long-term economic planning.

India’s financial support

India has also pledged Rs. 10,000 crore in support of Bhutan’s 13th Five-Year Plan (2024–2029), double the assistance provided in the previous plan. The commitment includes project-tied funding, community development initiatives, and economic stimulus measures.

The announcement comes amid growing strategic interest in Bhutan from China, underlining India’s focus on strengthening bilateral infrastructure and developmental cooperation with its northern neighbour.

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