India has handed over the fifth tranche of ₹250 crore (Nu. 2.5 billion) to Bhutan under its Economic Stimulus Programme (ESP), reaffirming New Delhi's commitment to supporting the Himalayan nation's post-pandemic economic recovery. With this latest disbursement, India's total assistance under the programme has reached ₹1,250 crore, out of the pledged ₹1,500 crore.
The cheque was presented in Thimphu by India's Ambassador to Bhutan, Sandeep Arya, to Bhutan's Foreign Minister Lyonpo D.N. Dhungyel. During the ceremony, Ambassador Arya reiterated that India remains committed to fulfilling its development partnership obligations under Bhutan's 13th Five-Year Plan (2024–2029), which includes funding for project assistance, the Economic Stimulus Programme, High Impact Community Development Projects and programme grants.
Bhutan's Foreign Minister thanked India for its continued support, stating that the Economic Stimulus Programme has played a crucial role in the country's economic revival following the COVID-19 pandemic. He said the initiative has helped generate employment and provided assistance to farmers, students, youth, startups, small and medium enterprises, the creative industry, and the hospitality and tourism sectors.
In addition to the ₹250 crore ESP instalment, Ambassador Arya also handed over cheques worth ₹46.4 crore for three separate projects related to education and digital development. Bhutan also acknowledged India's approval of another ₹250 crore under the National Fuel Price Smoothening Framework, aimed at cushioning the impact of global fuel price fluctuations on the country's economy.
India remains Bhutan's largest development partner. Under the broader ₹10,000 crore development assistance package announced for Bhutan during the 13th Five-Year Plan period, around ₹3,400 crore has already been released. More than 30 per cent of Bhutan's capital expenditure for the 2026–27 financial year is expected to be financed through grants from the Government of India, highlighting the depth of the long-standing bilateral partnership.
