**Summary:**
This document summarizes India's development assistance to Bhutan, specifically concerning Project Tied Assistance (PTA) and the Economic Stimulus Programme (ESP). As of August 8, 2025, India has committed INR 10,000 Crore to Bhutan's 13th Five Year Plan (FYP) for the period 2024-2029. This commitment encompasses PTA projects, High Impact Community Development Projects (HICDP), the ESP, and Programme Grants. During the 4th Development Cooperation Talks held on June 30, 2025, in New Delhi, the second tranche of 10 new PTA projects, totaling INR 1113 crores, was approved. These projects span sectors including healthcare, connectivity, urban infrastructure, and livestock. To date, the Government of India (GoI) has released INR 750 crores for the ESP, which is being implemented by the Royal Government of Bhutan (RGoB) with the aims of boosting domestic production, fostering new businesses, revitalizing existing enterprises, generating employment, and increasing tourism. Additionally, GoI has released INR 100 crores as a Programme Grant for direct budgetary support to Bhutan. The RGoB anticipates that the successful implementation of the 13th FYP will strengthen the economy and create opportunities for Bhutanese youth and has expressed gratitude to the GoI for its support.
Key Entities Referenced
Bhutan: A country, and the recipient of the Project Tied Assistance Programme and Economic Stimulation Programme.
Project Tied Assistance Programme: A programme under which ten new projects were launched with Bhutan.
SHRI CHHATRAPAL SINGH GANGWAR: Member of LOK SABHA who asked the unstarred question.
EXTERNAL AFFAIRS: The Ministry to which the question was addressed.
Economic Stimulation Programme ESP: A programme of Bhutan for which the Government of India provided financial assistance.
SHRI KIRTI VARDHAN SINGH: The Minister of State in the Ministry of External Affairs who answered the question.
New Delhi: Location of the 4th Development Cooperation Talks.
13th Five Year Plan FYP: Bhutan's thirteenth five-year plan, spanning from 2024 to 2029, supported by India.
GOVERNMENT OF INDIA
MINISTRY OF EXTERNAL AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO- 3416
ANSWERED ON – 08/08/2025
PROJECT TIED ASSISTANCE
3416. SHRI CHHATRAPAL SINGH GANGWAR
Will the Minister of EXTERNAL AFFAIRS be pleased to state :-
(a) the objective of launching ten new projects with Bhutan under
the ‘Project Tied Assistance’ Programme;
(b) the specific areas covered in these projects and the expected
outcomes thereof;
(c) whether the Government has provided financial assistance of
750 crore and a programme grant of 100 crore for the Economic
Stimulation Programme (ESP) of Bhutan; and
(d) if so, the current status of utilisation of these funds and their
impact on Bhutan’s economic recovery?
1ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS
(SHRI KIRTI VARDHAN SINGH)
(a to d) India’s development support to Bhutan is an important
pillar of our close bilateral ties. GoI has committed support of INR
10,000 Crore for Bhutan’s 13th Five Year Plan (FYP) period (2024-
2029) for Project Tied Assistance (PTA) projects, High Impact
Community Development Projects (HICDP), Economic Stimulus
Programme (ESP) and Programme Grant.
In the 4th Development Cooperation Talks held in New Delhi on 30
June 2025, the second tranche of 10 new PTA projects amounting to
INR 1113 crores across sectors such as healthcare, connectivity,
urban infrastructure and livestock were approved.
GoI has so far released INR 750 crores towards Economic Stimulus
Programme, which is being implemented by the Royal Government
of Bhutan (RGoB) to boost domestic production, create new
businesses, revitalize existing enterprises, generate employment
opportunities, and increase tourist arrivals. GoI has also released
2till date INR 100 crores of direct budgetary support to Bhutan as
Programme Grant.
The RGoB has stated that the successful implementation of the 13th
FYP will enhance the economy and create meaningful opportunities
for the youth. The RGoB has conveyed their sincere appreciation
and gratitude to the Government of India for its generous support
for the 13th FYP of Bhutan.
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