The fifth tranche of Rs 250 crores for the Economic Stimulus Programme (ESP) has been officially handed over by India’s Ambassador to Bhutan, Sandeep Arya, to Bhutan’s Minister for Foreign Affairs and External Trade, Lyonpo D.N. Dhungyel, in Thimphu on June 26. This transfer is part of the Government of India’s overall commitment of Rs 1,500 crores under the ESP designed to support Bhutan during its 13th Five-Year Plan, which spans from 2024 to 2029.

This latest tranche brings the total disbursed amount to Rs 1,250 crores thus far. The ESP aims to bolster various sectors in Bhutan, fostering development and economic stability.

During the event, Lyonpo Dhungyel expressed appreciation for India’s assistance. He highlighted the significant benefits of the ESP, particularly its impact on demographics including farmers, students, and the youth, as well as sectors such as small and medium enterprises, start-ups, and tourism.

Positive Outcomes from the Economic Stimulus Programme

The Foreign Minister underscored the role of the ESP in revitalising Bhutan’s economy following the challenges posed by the Covid-19 pandemic. He remarked that the programme has substantially contributed to employment generation and economic recovery in the country.

Moreover, Dhungyel acknowledged the Indian government’s agreement to allocate Rs 2.5 billion for the ‘National Fuel Price Smoothening Framework’. This initiative has been designed to alleviate the adverse effects of rising fuel prices, thereby contributing positively to Bhutan’s economy.

Ambassador Arya reaffirmed India’s commitment to supporting Bhutan’s development initiatives. He noted efficient fund disbursement under the 13th Five-Year Plan, which includes Project Assistance, ESP, and High Impact Community Development Projects.

Funding for Specific Projects and Initiatives

In another aspect of the ceremony, the Ambassador distributed additional cheques totalling Rs 464 million (46.4 crores) for several key projects aimed at enhancing educational quality and digital literacy in Bhutan.

A notable allocation of Rs 337 million (33.7 crores) was directed toward Professional Development and Immersion Programmes for teachers, counsellors, and education leaders. This funding aims to improve the quality of school education across Bhutan.

Furthermore, Rs 67.4 million (6.74 crores) was designated for a Digital Skilling Programme, which will create digitally literate citizens through basic and intermediate training. This initiative aims to train about one lakh individuals throughout various Gewogs in Bhutan.

Additionally, Rs 59.7 million (5.97 crores) is being allocated for the recruitment and support of STEM teachers in Bhutanese schools, further illustrating the ongoing collaborative efforts between the two nations.

India’s development cooperation represents a crucial element of the longstanding relationship between India and Bhutan. Out of India’s committed support of Rs 100 billion (10,000 crores) for Bhutan’s current Five-Year Plan, approximately Rs 34 billion (3,400 crores) has already been released, demonstrating effective cooperation ahead of the mid-point of the Plan.

According to the Bhutanese budget for the financial year 2026-27, more than 30 per cent of the capital expenditure will be supported through grants from the Indian Government, reinforcing India’s position as Bhutan’s leading development partner.

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