PM Modi's latest visit to Bhutan came at a time when the Himalayan region is witnessing rapid shifts
Prime Minister Narendra Modi's latest visit to Bhutan came at a time when the Himalayan region is witnessing rapid political and strategic shifts. The two-day trip in mid-November 2025 was more than a ceremonial gesture-it signalled India's intent to stand firmly with a neighbour facing multiple internal pressures and growing external challenges.
Bhutan is facing a rough transition. Prolonged economic constraints, coupled with limited industrial diversity and a declining population of working age, have given way to new concerns: unemployment has risen to almost 18 percent, and a large number of Bhutan's youth have migrated abroad over the last few years, creating voids in the labor force and administration.
Under King Jigme Khesar Namgyal Wangchuk, Bhutan is attempting to restructure its economy and institutions, while the country's security environment is continually being tested by continuing intrusions across the border from China.
India has clearly taken note of these challenges and opportunities. High-level exchanges between the two have become unusually frequent: Bhutan's Prime Minister has visited India multiple times since early 2024; the Bhutanese king has been received in New Delhi repeatedly. Modi's own visit to Bhutan helped build further momentum.
The joint inauguration of the 1,020 mw Punatsangchhu-II hydroelectric project, a flagship symbol of the long-standing energy partnership of the two neighbours, was a big highlight of the visit. This single project promises to raise Bhutan's total electricity generation by 40 per cent. India has also extended Rs 4,000 crore in concessional loans for Bhutan's energy initiatives and has reaffirmed its Rs 10,000 crore commitment to Bhutan's 13th Five-Year Plan and economic stimulus programme. Work on the long-delayed Punatsangchhu-I dam will be revived, with both sides agreeing to push for its early completion.
During his 11-12 November visit, Modi took part as the chief guest in the events celebrating the 70th birthday of Bhutan's revered fourth king. He joined the Global Peace Prayer Festival in Thimphu, where sacred Buddha relics carried from India were on public display. India's decision to provide land in Varanasi for a Bhutanese temple and guest house adds another layer to these historical bonds.
Behind this warmth is a strategic context that India cannot afford to overlook. Bhutan and China have had 25 rounds of border talks, and recent negotiations suggest movement. Thimphu has showed openness to a trilateral mechanism for addressing the sensitive Doklam tri-junction-a site of huge concern for both India and China. Meanwhile, continuing Chinese intrusions have pushed Bhutan to seek greater defense support and technological cooperation from India. The presence of India's National Security Adviser Ajit Doval during Modi's visit, despite security tensions at home, underlined how seriously New Delhi takes this partnership.
Another strategic factor is China's plan for the world's largest dam on the Brahmaputra. Analysts say Bhutan can thus play a crucial role in shaping the Indian long-term response, both because of its geography as well as because India and Bhutan already cooperate extensively on river-based and hydropower projects. Closer coordination between the two neighbours can further complicate China's ambitions and help protect the ecological and strategic balance of the eastern Himalayas.
Besides geopolitics, the India–Bhutan partnership is also growing in new areas. Cooperation in the field of STEM education, fintech, space technologies, healthcare, and mental health is gaining momentum. Bhutanese visitors will soon be able to use their local mobile apps for UPI payments in India, making travel and trade easier. India is also ensuring stable supply chains for essential goods and fertilizers to Bhutan.
Modi's 2025 visit finally underscored an essential fact: India considers Bhutan not as a friendly neighbour alone but as a long-term partner in development, connectivity, regional stability and security. Bhutan is turning towards domestic reforms amidst pressures from a powerful neighbour and, in the process, finding in India its most dependable ally. As China's presence is rapidly expanding in this region, good India–Bhutan ties have become more critical than ever.
(Mohit Singh is a television journalist)
