India Releases Third Tranche of Economic Stimulus Support to Bhutan
Strengthening Bhutan’s Economic Revival Through Strategic Assistance
Thimphu, February 18, 2025 – India has reaffirmed its commitment to Bhutan’s economic recovery by disbursing the third tranche of its Economic Stimulus Programme support. The Indian Ambassador to Bhutan, Shri. Sudhakar Dalela, handed over a cheque of INR/Nu. 2.5 billion (₹250 crores) to Bhutan’s Finance Minister, Lyonpo Lekey Dorji. This installment is part of India’s pledged INR/Nu. 15 billion (₹1,500 crores) financial aid to Bhutan’s ESP, aimed at fostering economic growth and resilience.
With this latest release, India has provided a total of INR/Nu. 7.5 billion (₹750 crores) under the programme, solidifying its role as Bhutan’s most trusted development partner.
Economic Stimulus Programme: A Catalyst for Growth
Bhutan launched the Economic Stimulus Programme on May 18, 2024, as a strategic response to post-pandemic economic challenges. The initiative, supported entirely by India’s financial aid, is designed to revitalize crucial sectors, generate employment, and promote sustainable development.
The programme focuses on key areas, including:
- Agriculture & Livestock – Strengthening food security and supporting rural farmers.
- Tourism Development – Reviving Bhutan’s tourism industry post-pandemic.
- Creative Industry – Encouraging innovation and cultural entrepreneurship.
- Cottage & Small Industries – Promoting grassroots entrepreneurship.
- Youth Employment & Education – Enhancing skill development for future job markets.
- De-Suung Skilling Programme – Equipping Bhutanese youth with vocational skills.
- One Gewog One Product Initiative – Encouraging self-sufficiency in rural communities.
- Concessional Credit Line (CCL) – Providing easier access to financial assistance.
The ESP Secretariat, established by the Royal Government of Bhutan, ensures the effective implementation, monitoring, and assessment of these initiatives.
Disbursement and Implementation Progress
Before this latest installment, Bhutan had already received INR/Nu. 5 billion (₹500 crores) in two tranches from India. The funds were allocated as follows:
- INR/Nu. 2.9 billion (₹290 crores) for government agencies implementing ESP initiatives.
- INR/Nu. 2.1 billion (₹210 crores) for concessional loans managed by the Bhutan Development Bank Ltd. and seven participating financial institutions.
The newly disbursed INR/Nu. 2.5 billion (₹250 crores) will further accelerate investments in job creation, rural development, and industry growth, reinforcing Bhutan’s long-term economic stability.
India’s Commitment to Bhutan’s Development
During the handover ceremony, Ambassador Sudhakar Dalela reaffirmed India’s unwavering support for Bhutan’s 13th Five-Year Plan, which outlines the country’s long-term development goals. He emphasized that India remains committed to backing Bhutan’s national priorities, ensuring the Himalayan nation’s economic sustainability.
Finance Minister Lyonpo Lekey Dorji expressed deep gratitude for India’s continued financial assistance. He acknowledged the crucial role that ESP funding has played in boosting Bhutan’s economy, creating jobs, and fostering new opportunities for its people.
Beyond ESP, India’s comprehensive financial assistance to Bhutan includes:
- Project Tied Assistance (PTA) – Supporting major infrastructure projects.
- High Impact Community Development Projects (HICDPs) – Strengthening grassroots development.
- Programme Grants (PGs) – Funding Bhutan’s policy and governance initiatives.
A Partnership Rooted in Mutual Prosperity
The release of the third tranche of ESP funding marks another milestone in India-Bhutan economic cooperation. As Bhutan pursues sustainable development, India’s strategic support ensures that key sectors receive the resources needed to thrive.
With a shared vision for regional stability and economic progress, India and Bhutan continue to exemplify a model partnership based on trust, cooperation, and enduring friendship.
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