S Jaishankar visits Bhutan for talks with top leadership, India eyes deeper ties

External Affairs Minister S Jaishankar arrived in Bhutan on Wednesday for a two-day official visit, during which he is scheduled to hold talks with Bhutanese Foreign Affairs and External Trade Minister Lyonpo D.N. Dhungyel and meet Prime Minister Tshering Tobgay and King Jigme Khesar Namgyel Wangchuck. The visit is aimed at reviewing bilateral ties and further strengthening the longstanding friendship and cooperation between India and Bhutan.

Visit comes amid expanded development cooperation

The visit follows Foreign Secretary Vikram Misri's trip to Bhutan in July for the fifth India-Bhutan Development Cooperation Talks on the country's 13th five-year plan. During that visit, India and Bhutan formalised a concessional line of credit worth ₹4,000 crore through an agreement between the Exim Bank of India and Bhutan's finance ministry for energy projects.

India has committed ₹10,000 crore towards Bhutan's 13th five-year plan, covering 2024 to 2029. New Delhi has also provided ₹750 crore for Bhutan's Economic Stimulus Programme and ₹100 crore as a programme grant.

The latest engagement comes shortly after a high-level India-Bhutan meeting on trans-border rivers in New Delhi in August. The two sides reviewed cooperation on river management, flood forecasting and management, hydrological data sharing and the implementation of the Punatsangchhu-I hydropower project. They also discussed strengthening Bhutan's hydro-meteorological network and reaffirmed their commitment to sustainable management of shared water resources.

Rail connectivity remains a key area of cooperation

India and Bhutan are also advancing plans for their first cross-border railway links. An inter-governmental memorandum of understanding signed in September 2025 envisages the Kokrajhar-Gelephu and Banarhat-Samtse links, covering around 88 to 89 km at an estimated cost of ₹4,033 crore. The projects are intended to improve connectivity and facilitate economic and trade links between the two countries.

The two governments have continued work on the proposed Kokrajhar-Gelephu connection, while Bhutan's recent engagement with India has also included discussions on development projects and digital and economic cooperation.

High-level exchanges continue between New Delhi and Thimphu

The Ministry of External Affairs said Jaishankar's visit is in keeping with the tradition of regular high-level exchanges between the two countries. Bhutan's foreign ministry said the visit is scheduled from September 16 to 18, while India's MEA has described it as a September 16-17 visit.

India remains Bhutan's largest trading partner, accounting for nearly 80% of Bhutan's total trade. Bilateral trade exceeded $1.9 billion in financial year 2024-25, according to information released by India's diplomatic mission in Bhutan.