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India handed Bhutan the fifth Rs 250 crore tranche under its Economic Stimulus Programme in Thimphu. The support underscores New Delhi's central role in Bhutan's recovery, budget funding and price stability efforts.
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Thimphu,UPDATED: Jun 25, 2026 18:06 IST
India on Thursday handed over the fifth tranche of Rs 250 crore to Bhutan for its Economic Stimulus Programme, taking the total disbursed under the initiative to Rs 1,250 crore, the Indian Embassy said. India has committed Rs 1,500 crore for the programme.
The latest release is part of India’s wider development support to Bhutan. The embassy said India routinely funds projects in the neighbouring Himalayan nation, and that more than 30 per cent of the capital expenditure in Bhutan’s 2026-27 budget will be supported through grants from the Indian government.
According to an embassy press release, India’s Ambassador to Bhutan, Sandeep Arya, handed over the Rs 250-crore cheque to Bhutan’s Foreign Minister Lyonpo DN Dhungyel in Thimphu on Thursday. Arya said India has been meeting its development commitments to Bhutan and has been releasing funds under the 13th Five-Year Plan (2024-2029) for project assistance, the Economic Stimulus Programme, high-impact community development projects and programme grants.
Dhungyel said the Economic Stimulus Programme has contributed to Bhutan’s post-pandemic economic recovery and employment generation. He said the programme has had a positive impact on farmers, students, youth, small and medium enterprises, start-ups, the creative industry, and the hospitality and tourism sectors, the release said.
Dhungyel also thanked India for approving another Rs 250 crore for the Fuel Price Smoothening Framework, which, he said, has helped reduce the impact of rising fuel prices on Bhutan’s economy. During the meeting, Arya also handed over cheques worth a total of Rs 46.4 crore for three separate projects related to education and digital development.
The embassy said that out of India’s overall committed support of Rs 10,000 crore for Bhutan between 2024 and 2029, which includes the Economic Stimulus Programme commitment, about Rs 3,400 crore has been released so far.
With PTI Inputs
- Ends
Published By:
India Today Web Desk
Published On:
Jun 25, 2026 18:06 IST
