India is committed to increase support for Bhutan’s 13th Five Year Plan and will also consider the request to assist in its ‘economic stimulus programme, according to the joint statement by both nations on the visit of Bhutanese Prime Minister Dasho Tshering Tobgay to India.

“India’s development assistance will be geared towards the development of infrastructure, building connectivity in its broadest form which includes road, rail, air and digital connectivity, and in sectors like agriculture, healthcare, education, skilling and cultural preservation,” the joint statement issued on Saturday noted.

Tobgay is on an official visit to India from March 14-18 2024, with his wife Tashi Doma, at the invitation of PM Narendra Modi. This is the Bhutanese PM’s first overseas visit after assuming office in January 2024.

On behalf of the King of Bhutan, Tobgay extended an invitation to Modi to visit Bhutan at an early date, which the Indian PM accepted.

The Bhutanese PM is accompanied by Lyonpo D.N. Dhungyel, Minister for Foreign Affairs and External Trade, Lyonpo Gem Tshering, Minister for Energy and Natural Resources, Lyonpo Namgyal Dorji, Minister for Industry, Commerce and Employment as well as senior officials from the Royal Government of Bhutan.

Modi said that India remained committed to partnering with Bhutan in its quest to become a high-income nation. The country hopes to transform itself into a high-income nation by 2034 and its 13th Five Year Plan, which starts this year, will focus on staying on path to achieve the goal.

“Prime Minister Modi reiterated India’s commitment to step up support for Bhutan’s 13th FYP including to consider request for the economic stimulus program,” the statement highlighted. Tobgay recently announced an ambitious ₹15 billion to support the country’s sagging economy and a substantial portion of the stimulus fund is likely to be allocated to support the revival and growth of the private sector

India and Bhutan expressed satisfaction with the progress in the construction of the 1020 MW Punatshangchhu-II hydropower project and looked forward to its commissioning in 2024, the release said.

Both Prime Ministers agreed to expand the existing India-Bhutan energy partnership to non-hydro renewables, such as solar and wind as well as green initiatives for hydrogen and e-mobility besides energy efficiency and conservation measures. The two sides reaffirmed the significance of cooperating closely in the energy sector.

Modi congratulated Bhutan for the successful implementation of the 12th Five Year Plan (FYP), notwithstanding challenges posed by the Covid-19 pandemic, as well as for Bhutan’s graduation from the Least Developed Countries in December 2023. “Prime Minister Tshering Tobgay thanked the Government of India for its development assistance of ₹5,000 crores to Bhutan’s 12th FYP, which has immensely contributed to the socio-economic well-being of the people of Bhutan,” the statement highlighted.

From Delhi, where he also met President Droupadi Murmu, Tobgay will travel to Mumbai where he will meet the Governor of Maharashtra and Indian business leaders.

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