India has officially delivered the fifth tranche of Rs 250 crore to Bhutan as part of its Economic Stimulus Programme. This brings the total amount disbursed under this initiative to Rs 1,250 crore, as announced by the Indian Embassy. The Indian government has pledged a total of Rs 1,500 crore for this programme, showcasing its ongoing commitment to support Bhutan’s economic development.

Ambassador’s Remarks and Future Commitments

The cheque was handed over by India’s Ambassador to Bhutan, Sandeep Arya, to Bhutan’s Foreign Minister Lyonpo DN Dhungyel in Thimphu on Thursday. Ambassador Arya stated that India has consistently fulfilled its developmental obligations towards Bhutan. He highlighted that funds have been released under the 13th Five-Year Plan, which covers the period from 2024 to 2029, aimed at project assistance, the Economic Stimulus Programme, and community development initiatives.

Ambassador Arya also mentioned that more than 30 per cent of the capital expenditure in Bhutan’s 2026-27 budget will receive support through grants provided by the Indian government. This support forms part of India’s broader development agenda in the neighbouring Himalayan nation.

During the meeting, Foreign Minister Dhungyel expressed gratitude for India’s assistance, which he said has been vital for Bhutan’s economic recovery, especially in the aftermath of the pandemic. He noted that the Economic Stimulus Programme has positively influenced various sectors including agriculture, education, youth employment, and the creative industry.

Additional Support for National Fuel Price Framework

In addition to the Economic Stimulus Programme, Minister Dhungyel thanked India for its approval of another Rs 250 crore dedicated to the National Fuel Price Smoothening Framework. He noted that this initiative has played a significant role in alleviating the adverse effects of rising fuel costs on Bhutan’s economy.

Furthermore, during the same occasion, Ambassador Arya presented cheques amounting to Rs 46.4 crore for three distinct projects focused on education and digital development. These projects aim to enhance the overall educational framework and digital infrastructure in Bhutan.

According to the Indian Embassy, since the start of the committed support, approximately Rs 3,400 crore has already been released from a total support pledge of Rs 10,000 crore for various initiatives between 2024 and 2029. This underscores India’s sustained involvement in Bhutan’s growth trajectory and reinforces the bilateral relationship between the two nations.

Overall Economic Impact and Future Prospects

The Ministry of Economic Affairs in Bhutan recognises that the Economic Stimulus Programme has been instrumental in not just economic recovery but also in creating employment opportunities. The programme is designed to assist farmers, students, small and medium enterprises, as well as sectors like hospitality and tourism, highlighting a comprehensive approach to uplift various layers of the economy.

As Bhutan continues to navigate challenges, India’s financial support serves as a crucial instrument for its economic stability and growth. The sustained collaboration between India and Bhutan represents a significant aspect of regional development, aimed at fostering resilience and prosperity in Bhutan.

In conclusion, this recent transfer of funds reinforces India’s commitment to Bhutan’s economic development and exemplifies ongoing collaborative efforts to address the challenges faced by the nation. The effects of such support are anticipated to enhance Bhutan’s development and address pressing economic issues as they arise.

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