India Announces ₹10,000 Crore Contribution to Bhutan’s Five-Year Plan

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India Announces ₹10,000 Crore Contribution to Bhutan’s Five-Year Plan

Analysis

• India has announced a ₹10,000 crore contribution to support Bhutan’s upcoming Five-Year Plan, reaffirming its long-standing development partnership with the Himalayan nation.
• The announcement was made during an event attended by Prime Minister Narendra Modi and King Jigme Khesar Namgyel Wangchuk of Bhutan.
• The King of Bhutan expressed deep gratitude towards India, emphasizing the historic friendship and mutual respect between the two nations, stating that “India has always stood by Bhutan, and so Bhutan stands with India.”
• Prime Minister Modi highlighted Bhutan’s unique approach to development through the Gross National Happiness Index (GNH) — a concept introduced by the Bhutanese King to measure progress through holistic well-being rather than just economic output (GDP).
• As part of the announcements, the Government of India will also provide land in Varanasi for the construction of the Royal Bhutanese Temple and a guest house, symbolizing cultural and spiritual cooperation.
• This financial and cultural support demonstrates India’s commitment to regional development, neighborly partnership, and the Act East Policy framework.

Static/Background Information

• India–Bhutan relations are based on the Treaty of Friendship and Cooperation (1949), revised in 2007 to strengthen sovereignty and partnership.
• India remains Bhutan’s largest development partner, assisting in hydropower projects, infrastructure, education, and healthcare.
• The Five-Year Plans of Bhutan, modelled on India’s earlier planning structure, guide national development policies focusing on sustainable growth and happiness-driven governance.
• The Gross National Happiness (GNH) Index, coined by King Jigme Singye Wangchuk, evaluates progress through parameters like cultural preservation, environmental conservation, good governance, and equitable socio-economic development.
• Bhutan’s hydropower exports to India form the backbone of its economy, further binding the two nations economically and strategically.

Updated – 11 Nov 2025 ; 10:51 PM | NewsOnAir