India Sends Fifth INR 250 Crore Stimulus Tranche To Bhutan, Overall Assistance Hits INR 1,250 Crore

India on Thursday released the fifth tranche of INR 250 crore to Bhutan under the Economic Stimulus Programme (ESP) , taking total disbursement to INR 1,250 crore out of a committed INR 1,500 crore , as part of its wider development partnership with the Himalayan nation.

The cheque was handed over in Thimphu by India’s Ambassador Sandeep Arya to Bhutan’s Foreign Minister Lyonpo DN Dhungyel. The assistance forms a key pillar of India’s ongoing support under Bhutan’s 13th Five-Year Plan (2024–2029) , which includes project assistance, high impact community development projects, and programme grants.

According to official coordination data from recent India–Bhutan Project Monitoring Committee meetings, India has so far released over INR 3,100 crore under the 13th Plan framework out of a committed INR 10,000 crore package , reflecting steady phased disbursement across sectors including infrastructure, education, health, energy, and digital development.

Officials noted that Bhutan’s Economic Stimulus Programme, designed to support post-pandemic recovery, remains fully integrated into this broader financing structure. The latest tranche continues a series of monthly and periodic releases monitored jointly by both governments to ensure project implementation and fiscal stability.

Bhutan has also acknowledged that Indian assistance has played a key role in stabilising growth and supporting livelihoods, particularly in agriculture, tourism, small and medium enterprises, startups, and the creative economy. Earlier coordination reviews show that ESP funds have also been used for concessional lending and targeted employment generation programmes.

In addition to the ESP funding, India released INR 46.4 crore for three separate initiatives focused on education and digital development, further reinforcing cooperation in human capital and governance reform.

The broader India–Bhutan partnership remains strategically significant, with Bhutan continuing to receive the highest share of India’s development assistance among neighbouring countries in the Union Budget framework, reflecting New Delhi’s priority to the relationship.