India has disbursed the fifth tranche of Rs 250 crore (INR 2.5 billion) to Bhutan under the Economic Stimulus Programme (ESP), as part of New Delhi's commitment to support the Himalayan kingdom's 13th Five Year Plan (2024-2029). The cheque was handed over by Indian Ambassador to Bhutan, Sandeep Arya, to Bhutan's Minister for Foreign Affairs and External Trade, Lyonpo D.N. Dhungyel, during a ceremony in Thimphu, according to a statement from the Indian Embassy.
Total Disbursement Reaches Rs 1,250 Crore
With this latest transfer, India has released a total of Rs 1,250 crore to Bhutan under the ESP, against the overall commitment of Rs 1,500 crore. The ESP is a key component of India's development partnership with Bhutan, aimed at revitalizing the economy post-COVID-19 and generating employment across multiple sectors.
Impact on Key Sectors
During the handover, Foreign Minister Dhungyel expressed gratitude for India's support, highlighting the positive impact of the ESP on farmers, students, youth, Desuups (volunteers), small and medium enterprises, start-ups, creative industries, hospitality, and tourism. He noted that the programme has been instrumental in economic recovery and job creation in Bhutan.
National Fuel Price Smoothening Framework
Dhungyel also thanked India for agreeing to allocate INR/Nu. 2.50 billion toward Bhutan's 'National Fuel Price Smoothening Framework'. This initiative has helped mitigate the impact of rising fuel prices and contributed to economic stability in the country.
Timely Disbursement Under 13th Five Year Plan
Ambassador Arya remarked that India has been efficiently fulfilling its development commitments to Bhutan, disbursing funds under the 13th Five Year Plan in a timely manner for Project Assistance, ESP, High Impact Community Development Projects, and Programme Grant.
Additional Funding for Education and Digital Skills
At the meeting, the Ambassador also handed over cheques totaling INR/Nu. 464 million (Rs 46.4 crore) for specific projects:
- Professional Development and Immersion Programmes for Teachers, Counsellors and Education Leaders: INR/Nu. 337 million (Rs 33.7 crore) to improve the quality of school education in Bhutan.
- Digital Skilling Programme: INR/Nu. 67.4 million (Rs 6.74 crore) to support Digital Drukyul by providing basic and intermediate digital literacy training to around 100,000 citizens across all Gewogs through GovTech.
- Recruitment of STEM Teachers: INR/Nu. 59.7 million (Rs 5.97 crore) to support STEM education in Bhutanese schools.
India's Overall Commitment to Bhutan's 13th Five Year Plan
Development cooperation remains a cornerstone of the special relationship between India and Bhutan. Out of India's pledged support of INR/Nu. 100 billion (Rs 10,000 crore) for Bhutan's 13th Five Year Plan, covering Project Assistance, High Impact Community Development Projects, ESP, and Programme Grant, approximately INR/Nu. 34 billion (Rs 3,400 crore) has already been released before the completion of the first two years of the plan period.
Bhutan's Budget Relies on Indian Grants
According to Bhutan's budget for the financial year 2026-27, adopted recently, over 30% of the capital expenditure will be supported through grants from the Government of India. The Indian Embassy reiterated that India remains Bhutan's top development cooperation partner and continues to meet all commitments in a timely and efficient manner, in line with the enduring friendship and cooperation between the two countries.
