Bhutan Strengthens Economic Ties with India at Bengal Global Business Summit 2025

Published by Ajay Verma at February 5, 2025

Bhutan’s Vision for Deeper Collaboration

Speaking at the summit, Dasho Younten Phuntsho emphasized the vast opportunities for India-Bhutan collaboration, particularly in sustainable energy, organic agriculture, and wellness tourism.

“For Bhutan, this summit is an opportunity to deepen our collaboration with India and explore areas where our shared aspirations align,” he stated. “We invite investors to explore Bhutan’s organic agriculture sector, invest in our hydropower and renewable energy projects, and support eco-friendly tourism that aligns with our vision of sustainability.”

Bhutan, known for its strong conservation policies, is positioning itself as a leader in clean energy. Dasho Phuntsho highlighted that Bhutan’s hydro, solar, and wind energy resources make it a natural partner for regional green energy projects.

During the summit, Bhutan engaged with Indian investors and policymakers to discuss opportunities in sustainable infrastructure, agri-tech, and responsible tourism. These areas align with Bhutan’s Gross National Happiness (GNH) philosophy—an economic model balancing progress with environmental and social well-being.

Bhutan’s Strategic Focus on Connectivity and Trade

A key highlight of Bhutan’s participation at BGBS 2025 was the discussion on enhancing connectivity with West Bengal. Dasho Phuntsho stressed the importance of improved railway infrastructure to boost trade.

“Better railway connectivity between Bhutan and Bengal would be a game-changer, opening new opportunities for trade and investment while strengthening people-to-people ties,” he noted.

West Bengal, a major economic hub in Eastern India, serves as Bhutan’s gateway for expanding trade ties with India. Bhutanese officials held discussions with business leaders and policymakers to explore ways to improve trade logistics and enhance cross-border commerce. Strengthening logistical networks, including customs facilitation and integrated check posts, is expected to increase trade in agricultural produce, energy exports, and handicrafts.

Diplomatic Dynamics: Change in Bhutan’s Representation

Bhutan’s participation at BGBS 2025 came amid discussions regarding the absence of Prime Minister Dasho Tshering Tobgay. Initially expected to lead the delegation, his non-attendance sparked speculation, particularly after West Bengal Chief Minister Mamata Banerjee hinted at potential interference from New Delhi.

“Something is happening in Delhi,” Banerjee remarked, suggesting that Bhutan’s leadership may have faced pressure regarding the visit. Despite these concerns, Bhutan reaffirmed its commitment to the summit by sending Dasho Phuntsho, whose participation underscored the nation’s dedication to strengthening bilateral ties.

While the reasons for the Prime Minister’s absence remain unclear, Bhutan has emphasized its strong partnership with India. Diplomats and industry leaders noted that Bhutan’s presence at BGBS 2025 remains significant, reaffirming the country’s economic and trade aspirations with West Bengal and beyond.

Bhutan and India: A Legacy of Trust and Cooperation

Bhutan’s participation at BGBS 2025 follows recent high-level diplomatic engagements, including His Majesty King Jigme Khesar Namgyel Wangchuck’s visit to India. The King attended the Maha Kumbh Mela in Uttar Pradesh at the invitation of Prime Minister Narendra Modi, reflecting the deep-rooted trust and cooperation between the two nations.

As Bhutan continues positioning itself as a regional leader in sustainable development, its collaboration with West Bengal and India marks a step toward shared prosperity and economic integration. The discussions and agreements at BGBS 2025 are expected to pave the way for increased investment, greater trade opportunities, and stronger diplomatic relations between the two neighbors.

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