India, Bhutan to discuss new routes of regional connectivity

Contact Counsellor

Last Updated08/11/2023

India and Bhutan agreed to discuss new routes of regional connectivity.and upgrade border and immigration posts to
This will support Bhutan’s 5th King’s plans for a smart city at Gelephu on the border between Bhutan and Assam
No mention was made of India’s overhanging concerns over Bhutan’s boundary delimitation agreement process with China.

There was agreement on the final survey for the 58 km cross-border rail link between Gelephu and Kokrajhar in Assam to be built by India.
The two sides agreed to explore a second rail link for about 18 km between Samtse in Bhutan and Banarhat in West Bengal tea gardens area.
India also agreed to allow Bhutanese trade items to be carried further on from Haldibari in West Bengal to Chilahati in Bangladesh.
Rail connectivity could in the future assist air connectivity for Indians in the northeast as well
- As Bhutan plans to build an international airport at Gelephu as part of the larger Sarpang district Special Economic Zone.
India and Bhutan agreed to designate the Darranga-Samdrup Jongkhar border crossing between Assam and Bhutan’s less developed-South Eastern district as an immigration check post,
- So as to allow third country nationals to enter and exit as well “for enhancing connectivity, and promoting tourism”.
Both sides agreement to upgradation of an existing land customs station at Dadgiri (Assam) to a modernised “Integrated Check Post” (ICP) along with “development of facilities on the Bhutanese side at Gelephu”,
- Indicating India’s support to the Bhutanese SEZ project.

India reiterated continued and full support to the socio-economic development in Bhutan based on the priorities of the Royal Government
The Bhutanese King also thanked the government for its development assistance for Bhutan’s 12th Five-Year plan, (2018-2023) that ended on October 31 2023.
India reiterated its commitment to support the new 13th Five-Year Plan as well.
Bhutan;s King is visiting Mumbai to explore investment and collaborations for Bhutan’s infrastructure.

Bhutan’s economy, is expecting
- To grow by a modest 4.3%, lower than the sub-regional average,
- Low forex reserves
- A major public debt, with an estimated 125% Government Debt to GDP ratio in 2022