India, Bhutan to Build First-Ever Cross-Border Railway Links

  • 01 Oct 2025

On 27th September 2025, India announced plans to construct two cross-border railway links with Bhutan — the first such connectivity projects between the two countries. Valued at over ₹4,000 crore, the initiative seeks to deepen trade ties and boost economic engagement.

Key Points

  • Railway Links: Projects will connect Bhutan’s Gelephu with Kokrajhar in Assam, and Samtse with Banarhat in West Bengal.
  • Diplomatic Engagement: Announcement followed consultations between Indian Foreign Secretary Vikram Misri and Bhutanese Foreign Secretary Aum Pema Choden in New Delhi.
  • Energy Partnership: Both sides highlighted the commissioning of all six units of the 1,020 MW Punatsangchhu-II hydropower project under the India-Bhutan Joint Vision on Energy Partnership.
  • Development Support: India has committed ₹10,000 crore for Bhutan’s 13th Five-Year Plan (2024–2029), doubling its allocation from the previous plan.
  • Economic Significance: Railway Minister Ashwini Vaishnaw stressed the importance of seamless connectivity, noting that most of Bhutan’s EXIM trade passes through Indian ports.
  • Strategic Importance: Projects hold developmental and security value amid increasing Chinese interest in Bhutan.