India releases fifth tranche of Rs 250 Crore to Bhutan under economic stimulus programme

India on Thursday disbursed the fifth tranche of ₹250 crore to Bhutan under its Economic Stimulus Programme, taking total support to ₹1,250 crore. The funding is aimed at boosting Bhutan's post-pandemic recovery, employment generation and key development sectors

Thimphu: India on Thursday handed over the fifth tranche of INR 250 crore to Bhutan for its Economic Stimulus Programme (ESP), the Indian Embassy said.

This brought the total disbursed amount so far to INR 1,250 crore out of India’s committed support of INR 1,500 crore for the ESP.

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India routinely funds projects in the neighbouring Himalayan nation. Over 30 per cent of the capital expenditure in Bhutan’s budget for 2026-27 will be supported through grants by the Indian government.

On Thursday, New Delhi’s Ambassador in Thimphu, Sandeep Arya, handed over an INR 250-crore cheque to Bhutan’s Foreign Minister Lyonpo DN Dhungyel, according to a press release by the Indian Embassy.

Arya observed that India has been fulfilling its development commitments to Bhutan and disbursing funds under the 13th Five-Year Plan (2024-2029) for project assistance, ESP, high-impact community development projects and programme grants, the embassy said.

Dhungyel said the ESP has contributed to Bhutan’s post-pandemic economic revitalisation and employment generation. He highlighted the ESP’s positive impact on farmers, students, youth, small and medium enterprises, startups, creative industry, hospitality and tourism sectors, the press release said.

Dhungyel also thanked India for approving another INR 250 crore for the ‘National Fuel Price Smoothening Framework’, which has helped mitigate the impact of rising fuel prices on Bhutan’s economy, it said.

During the meeting, the Ambassador also handed over cheques totalling INR 46.4 crore for three separate projects concerning education and digital development.

Out of India’s overall committed support of INR 10,000 crore for Bhutan between 2024 and 2029, which includes the ESP commitment, funds amounting to about INR 3,400 crore have been released so far, the embassy added.