Prime Minister Narendra Modi concluded a two-day State Visit to Bhutan (November 11–12, 2025) at the invitation of King Jigme Khesar Namgyel Wangchuck. The centrepiece of the visit was the joint inauguration of the 1,020 MW Punatsangchhu-II Hydroelectric Project — a flagship India-Bhutan bilateral energy project that raises Bhutan's total power generation capacity by nearly 40 per cent. India also announced a Line of Credit (LoC) worth ₹4,000 crore for Bhutan to develop further hydropower and clean energy projects, and both nations reaffirmed commitment to the 1,200 MW Punatsangchhu-I project. Multiple MoUs were signed, including on Renewable Energy cooperation (covering solar, wind, green hydrogen, and energy storage), Health and Medicine, and institutional linkages in mental health (PEMA Secretariat–NIMHANS). PM Modi also attended the Kalachakra Empowerment ceremony in Thimphu, deepening civilisational ties. The visit reinforced India's 'Neighbourhood First' policy and established a new milestone in India-Bhutan strategic partnership, which has historically been governed by the 1949 Treaty of Friendship (revised 2007). Bhutan remains India's closest bilateral partner with a unique model of cooperation based on mutual trust and shared development goals.
PM Modi Concludes Two-Day State Visit to Bhutan — Inaugurates 1,020 MW Punatsangchhu-II Hydropower Project, Signs Key MoUs
Prime Minister Narendra Modi concluded a two-day State Visit to Bhutan (November 11–12, 2025) at the invitation of King Jigme Khesar Namgyel Wangchuck. The centrepiece of the visit was the joint inauguration of the 1,020 MW Punatsangchhu-II Hydroelectric Project — a flagship India-Bhutan bilateral energy project that raises Bhutan's total power generation capacity by nearly 40 per cent. India also announced a Line of Credit (LoC) worth ₹4,000 crore for Bhutan to develop further hydropower and clean energy projects, and both nations reaffirmed commitment to the 1,200 MW Punatsangchhu-I project. Multiple MoUs were signed, including on Renewable Energy cooperation (covering solar, wind, green hydrogen, and energy storage), Health and Medicine, and institutional linkages in mental health (PEMA Secretariat–NIMHANS). PM Modi also attended the Kalachakra Empowerment ceremony in Thimphu, deepening civilisational ties. The visit reinforced India's 'Neighbourhood First' policy and established a new milestone in India-Bhutan strategic partnership, which has historically been governed by the 1949 Treaty of Friendship (revised 2007). Bhutan remains India's closest bilateral partner with a unique model of cooperation based on mutual trust and shared development goals.
Key facts
- PM Modi concluded a two-day State Visit to Bhutan on November 11–12, 2025.
- The 1,020 MW Punatsangchhu-II Hydropower Project was jointly inaugurated during the visit.
- India announced a ₹4,000 crore Line of Credit for Bhutan's clean energy development.
- MoUs were signed on renewable energy, health, medicine, and mental health cooperation.
- The visit reinforced India's 'Neighbourhood First' policy and strengthened bilateral ties.
- India-Bhutan relations are governed by the 1949 Treaty of Friendship, revised in 2007.
Mains angle
Q: Assess the strategic significance of Prime Minister Modi's November 2025 State Visit to Bhutan in the context of India's Neighbourhood First policy and bilateral energy cooperation.
Answer (50 words):
PM Modi's two-day Bhutan visit (November 11-12, 2025) featured joint inauguration of the 1,020 MW Punatsangchhu-II hydropower project, raising Bhutan's generation capacity by nearly 40%. India announced a ₹4,000 crore Line of Credit, signed MoUs on renewable energy and health, and reaffirmed commitment to the 1,200 MW Punatsangchhu-I project.
Static prep for this topic
Read the permanent syllabus behind this story.
6-axis classification
Appears in these topics
Source: PIB
Frequently asked questions
What was the purpose and outcome of PM Modi's state visit to Bhutan on November 11–12, 2025?
PM Modi visited Bhutan on November 11–12, 2025 at the invitation of King Jigme Khesar Namgyel Wangchuck. The visit resulted in the joint inauguration of the 1,020 MW Punatsangchhu-II Hydroelectric Project, the signing of multiple MoUs on renewable energy and health, and the announcement of a ₹4,000 crore Line of Credit for Bhutan's clean energy development.
What is the significance of the Punatsangchhu-II Hydroelectric Project for India-Bhutan relations?
The 1,020 MW Punatsangchhu-II Hydroelectric Project is a flagship bilateral energy project jointly developed by India and Bhutan. Its inauguration raised Bhutan's total power generation capacity by nearly 40 per cent and exemplifies India's 'Neighbourhood First' policy through energy cooperation with its Himalayan neighbour.
What is the 'Neighbourhood First' policy and how does India's relationship with Bhutan reflect it?
India's 'Neighbourhood First' policy prioritises strong political, economic, and cultural ties with neighbouring countries. India-Bhutan relations, governed by the 1949 Treaty of Friendship (revised in 2007), are a model of this policy — with India being Bhutan's largest trade partner, primary development partner, and key energy collaborator.
What is a Line of Credit (LoC) and what was the LoC announced during PM Modi's Bhutan visit for?
A Line of Credit (LoC) is a pre-approved loan facility extended by one country to another to fund specific development projects. India announced a ₹4,000 crore LoC to Bhutan during PM Modi's November 2025 visit to help develop additional hydropower and clean energy projects, including solar, wind, and green hydrogen initiatives.
Which treaty governs India-Bhutan bilateral relations and when was it revised?
India-Bhutan bilateral relations are governed by the 1949 Treaty of Friendship, which was revised in 2007. The revised treaty updated the terms of the relationship while maintaining close ties, and it gives Bhutan more autonomy in conducting its foreign policy compared to the original 1949 version.
Was this useful?
Share corrections or missing exam angles with the editorial team.
Send feedback