India and Bhutan have announced a major new initiative focused on establishing rail connectivity, marking a significant milestone in their long-standing bilateral partnership.

The announcement was made by Foreign Secretary Vikram Misri alongside Union Minister Ashwini Vaishnaw during a joint press conference in New Delhi on September 29, 2025. This move reflects the growing momentum in the already deep developmental and strategic cooperation between both countries.

Foreign Secretary Misri emphasized that the initiative to build railway connectivity demonstrates the exceptional trust and understanding underpinning India-Bhutan relations. He described the ties as rooted in cultural and civilizational linkages, close people-to-people relations, and multifaceted developmental and security cooperation. The project is expected to enhance cross-border economic integration and improve regional connectivity.

High-level political engagement continues to reinforce the special bond between the two nations. Prime Minister Narendra Modi’s visit to Bhutan in March 2024, where he was awarded Bhutan’s highest civilian honour—the Order of the Druk Yalpo—was highlighted as a clear expression of mutual respect. 

Similarly, frequent visits by Bhutan’s King and Prime Minister to India further indicate the vitality of bilateral exchanges. Recent visits included His Majesty the King attending the Mahakumbh in India and the Bhutanese Prime Minister participating in the consecration of a Bhutanese temple in Rajgir.

India has played an essential role in Bhutan’s developmental trajectory. As Bhutan progresses through its Five-Year Plans, India has been the largest provider of developmental assistance. This assistance has been crucial in modernizing infrastructure, fostering economic growth, and supporting community-level projects.

For Bhutan’s ongoing 13th Five-Year Plan (2024–2029), India has committed ₹10,000 crore in development aid. This allocation spans project-based interventions, economic stimulus measures, program grants, and high-impact community projects. Importantly, this represents a 100 percent increase compared to the assistance provided under Bhutan’s 12th Five-Year Plan.

The railway connectivity project announced by Misri and Vaishnaw is expected to become a flagship element of India-Bhutan cooperation. It will not only facilitate trade and passenger movement but also bind the two economies and societies more closely together. Given Bhutan’s landlocked position, direct rail links with India could significantly enhance its logistics and trade access, improving connectivity with regional and global markets.

At the press briefing, the collaboration was framed as both a developmental priority and a demonstration of the enduring friendship between the two Himalayan neighbours. The joint step reflects Bhutan’s trust in India’s partnership model of infrastructure development, while also advancing New Delhi’s vision of strengthening connectivity networks across the South Asian region.

Based On ANI Report