India, Bhutan Sign ₹4,000-Crore Line of Credit Agreement

India and Bhutan signed a concessional Line of Credit (LoC) agreement worth ₹4,000 crore (Nu 40 billion) during the 5th India-Bhutan Development Cooperation Talks held on 30 July 2026, co-chaired by Foreign Secretary Vikram Misri and Bhutanese Foreign Secretary Dasho Pema Lektup Dorji.

Fifth India-Bhutan Development Cooperation Talks Focused on Key Sectoral Reviews

The talks brought together the two foreign secretaries to take stock of ongoing India-backed projects spread across several development sectors in Bhutan. Bhutan expressed gratitude for India's steady support in advancing the country's socio-economic growth.

Virtual Inauguration of Thimphu Ecological Park and Olakha Park

The two foreign secretaries jointly inaugurated the Thimphu Ecological Park and Olakha Park virtually, both developed under the India-funded "Green Infrastructure and Open Spaces in Thimphu" project as part of the bilateral economic partnership.

Bhutan's 13th Five-Year Plan and India's Continued Support

The discussions centred heavily on how India-funded projects are being executed under Bhutan's 13th Five-Year Plan.

₹4,000-Crore Line of Credit Agreement

The Export-Import Bank of India and Bhutan's Ministry of Finance exchanged an agreement for a concessional line of credit worth ₹4,000 crore (Nu 40 billion), aimed at supporting development initiatives across Bhutan.

AIIMS-Bhutan MoU on Health Education and Research

The two sides also exchanged an MoU for cooperation in health education and research between the All India Institute of Medical Sciences (AIIMS) and Bhutan's Khesar Gyalpo University of Medical Sciences.

Support for Bhutan's Green Mobility Initiatives

As part of India's backing for Bhutan's clean mobility push, 45 electric vehicles were handed over to the Royal Government of Bhutan.

Strategic Significance of India-Bhutan Development Cooperation

1. Bilateral Partnership: India remains Bhutan's largest development partner, having long supported infrastructure, connectivity, education, health, and capacity-building efforts.
2. Regional Diplomacy: The agreement reinforces India's continued commitment to Bhutan's growth plans, strengthening ties with a key Himalayan neighbour.