PM Modi’s Bhutan Visit: A Celebration of Friendship, Faith, and Future Energy Ties

When Prime Minister Narendra Modi lands in Thimphu on November 11, the crisp Himalayan air will carry more than ceremonial warmth — it will carry seven decades of trust, friendship, and shared dreams between India and Bhutan. The visit, spread across two days (November 11–12, 2025), is not just another diplomatic engagement. It is a reaffirmation of India’s deep civilisational, spiritual, and economic bonds with the tiny yet strategically vital Himalayan kingdom.

Modi's Bhutan Visit

Modi’s visit coincides with the 70th birth anniversary celebrations of His Majesty the Fourth King of Bhutan, Jigme Singye Wangchuck — a revered monarch credited with ushering Bhutan into modernity while preserving its unique identity of “Gross National Happiness.” The Indian Prime Minister has called it “an honour to join the people of Bhutan in celebrating this milestone,” underscoring how deeply India values its ties with the kingdom.

Adding spiritual resonance to the visit is the exposition of the Sacred Piprahwa Relics of Lord Buddha — a gesture symbolising the eternal cultural and spiritual connection between the two nations. These relics, brought from India, are being showcased at Bhutan’s Global Peace Prayer Festival, serving as a reminder that Indo-Bhutan friendship is not merely built on agreements and treaties, but on shared faith and history that go back centuries.

A Major Energy Milestone: The Punatsangchhu-II Project

The highlight of Modi’s visit will be the inauguration of the 1,020 MW Punatsangchhu-II Hydropower Project, a flagship example of India-Bhutan energy cooperation. With its commissioning, the two nations now boast five major hydropower projects producing over 3,100 MW of clean electricity — a remarkable achievement for the region.

Hydropower is not just an energy venture; it’s the heartbeat of Bhutan’s economy and a pillar of bilateral friendship. India’s support — from financing to building to buying the surplus power — has allowed Bhutan to harness its rivers for national development. The new project will significantly boost Bhutan’s power exports to India while contributing to regional sustainability goals.

Modi, in his statement before departure, described India and Bhutan’s partnership as “exemplary, rooted in mutual trust and goodwill — a key pillar of India’s Neighbourhood First policy.” His meetings with the King of Bhutan, the Fourth King, and Prime Minister Tshering Tobgay will further consolidate these priorities — particularly around trade, connectivity, and strategic cooperation.

Trade Ties: Growing Stronger by the Year

India remains Bhutan’s largest trading partner — accounting for nearly 80% of Bhutan’s total trade. Under the India-Bhutan Friendship Treaty (2007) and the India-Bhutan Agreement on Trade, Commerce and Transit (2016), both nations enjoy a free trade regime and duty-free transit for Bhutanese goods.

In 2024–25 alone, bilateral trade surged to ₹12,669 crore, with Indian exports worth ₹9,538 crore and imports worth ₹3,131 crore. India continues to facilitate Bhutan’s exports by opening new trade routes, easing customs norms, and exempting essential commodities from tariffs.

A recent B2B agreement on fertilizer supply has further strengthened agricultural collaboration — vital for Bhutan’s rural economy. This growing trade synergy reflects not just proximity but partnership — one that prioritizes inclusive growth for both nations.

Connecting Through Rail, Roads, and Rivers

If trade is the bloodline of India-Bhutan ties, connectivity is its beating heart. The two nations are now scripting a new chapter in cross-border mobility.

In September 2025, both sides signed an intergovernmental MoU for two major railway links — the Kokrajhar–Gelephu (69 km) and Banarhat–Samtse (20 km) lines, built at a combined cost of ₹4,033 crore. These railways will open new avenues for trade, tourism, and people-to-people exchange, connecting Bhutan directly to India’s northeast and beyond.

Complementing these efforts, the Jogigopha Inland Waterway Terminal, inaugurated in January 2025, and the Immigration Check Post at Darranga, Assam (opened November 2024), will smoothen movement of goods and people — expanding Bhutan’s access to India’s markets and ports.

Hydropower: The Timeless Bond

Bhutan’s mighty rivers have long symbolized its partnership with India. Over the decades, joint hydropower ventures have transformed Bhutan from an isolated mountain kingdom to a self-reliant economy powered by clean energy.

The five existing projects — Chukha (336 MW), Kurichhu (60 MW), Tala (1,020 MW), Mangdechhu (720 MW), and Punatsangchhu-II (1,020 MW) — together generate over 3,156 MW of electricity. Another major project, the 1,200 MW Punatsangchhu-I, is still under construction, promising to add another feather to the partnership’s cap.

Bhutan’s electricity exports to India have become a steady source of national revenue. India, in turn, benefits from reliable green power at competitive rates — making this partnership a model of regional energy cooperation.

A New Frontier: Space, Digital, and Skills Collaboration

While hydropower may be the backbone, the India-Bhutan partnership is evolving rapidly into high-tech and future-ready sectors.

In 2022, the launch of the India-Bhutan SAT — a collaborative satellite developed by ISRO and Bhutanese engineers — marked a major leap in space cooperation. Indian institutions continue to train Bhutanese scientists, deepening the latter’s capabilities in space and remote sensing technologies.

Fintech integration has also taken off, quite literally. With the rollout of RuPay Cards (2019) and BHIM UPI (2021) in Bhutan, cross-border digital payments have become seamless — empowering citizens, travellers, and businesses alike.

India has additionally extended ₹200 crore in grants and ₹1,500 crore in concessional loans to support Bhutan’s Gyalsung National Service Programme, an ambitious initiative that provides a year-long mandatory national service and skill development for all 18-year-olds in Bhutan. This reflects India’s commitment not just to Bhutan’s economy but to its youth and future.

Foreign Investment and Economic Integration

As of December 2024, Bhutan had approved 121 FDI projects, and India remains the largest investor with nearly 55% of total inflows. These investments span hydropower, banking, IT, infrastructure, and education, driving innovation and employment in Bhutan’s growing economy.

The trade data tells a consistent story of growth and interdependence. Between 2021 and 2025, total bilateral trade rose from USD 1.43 billion to USD 1.77 billion, with India maintaining a healthy surplus due to strong exports of petroleum products, rice, steel, maize, and smartphones. Meanwhile, India continues to import Bhutan’s electricity, ferro-silicon, cement, and dolomite — critical for its industries.

A Friendship Beyond Geography

India and Bhutan’s story goes far beyond borders or policies — it’s a tale of two nations united by culture, faith, and values. The spiritual thread of Buddhism ties their pasts, while shared aspirations for clean energy, digital progress, and inclusive growth bind their futures.

As Prime Minister Modi steps into Thimphu, the symbolism is hard to miss — a world increasingly divided finds a rare example of enduring friendship and mutual respect in the India-Bhutan bond.

This visit isn’t just about inaugurating a power project or marking an anniversary. It’s about celebrating a relationship that has stood the test of time — rooted in compassion, powered by collaboration, and ready for a future of shared prosperity.