India, Bhutan clear first-ever rail link projects to boost connectivity and trade

PM Narendra Modi with Bhutan's Prime Minister Lotay Tshering (Image: Reuters)

India and Bhutan have approved the first-ever rail connectivity projects between the two nations, a development hailed as a milestone in their bilateral relations and economic cooperation. Two major new lines have been cleared: the Kokrajhar-Gelephu route and the Banarhat-Samtse route, aimed at boosting cross-border trade, movement, and regional integration.

The Kokrajhar-Gelephu rail line, with a budget of Rs 3,456 crore, will connect Assam’s Kokrajhar and Chirang districts with Bhutan’s Sarpang region. Officials told news agency ANI that this project will not only ease the movement of people and goods but also open up new employment and economic opportunities. Significantly, Gelephu is being developed as a "mindfulness city" under Bhutan’s vision for growth. The second line, Banarhat-Samtse, will run from West Bengal’s Jalpaiguri district into Bhutan’s Samtse.

With an investment of Rs 577 crore, the line is expected to strengthen Bhutan’s access to Indian ports and international trade routes, besides supporting the Samtse region, which the Bhutanese government is developing as an industrial hub. Speaking about the significance of these initiatives, Foreign Secretary Vikram Misri stated, “There is a major new initiative between India and Bhutan on the establishment of rail connectivity between our two countries.”

He called the projects a “major new initiative” that underscores India’s commitment to advancing Bhutan’s development and trade prospects. “These ties are reflected in very close contact at the highest levels,” Misri said, stressing the special nature of the India-Bhutan relationship. “India and Bhutan share a relationship of exceptional trust, mutual respect and understanding. This is a relationship that is rooted in cultural and civilizational ties, extensive people-to-people relations and our shared developmental and security interests.”

Officials told ANI that the rail projects will strengthen connectivity along the 700 km India-Bhutan border, bringing Bhutan closer to global trade networks via Indian ports. They emphasized that these projects are also part of promises made during recent high-level visits and discussions, further positioning connectivity as a cornerstone of bilateral ties.

Highlighting the close engagement, Misri pointed out, “His Majesty, the King of Bhutan and the Prime Minister of Bhutan have been visiting India regularly. His Majesty the King was here earlier to attend Mahakumbh, and, the Prime Minister was here just a few weeks ago to attend the consecration of the Bhutanese temple in Rajgir.”

He also recalled Prime Minister Narendra Modi’s visit to Bhutan in March 2024, during which he was conferred the Order of the Druk Yalpo, Bhutan’s highest civilian award. On India’s role in Bhutan’s development, Misri remarked, “The Government of India has been Bhutan’s largest provider of developmental assistance and has played a vital role in its modernisation, especially in the areas of infrastructure and the overall economic development of the country.”

He further underlined India’s financial commitment, saying, “For the 13th Five-Year Plan of Bhutan, which runs from 2024 to 2029, the Government of India has committed support of Rs 10,000 crores, which covers project-wide assistance, high-impact community development projects, the economic stimulus program and a program grant. And this quantum constitutes a 100 per cent increase over the 12th five-year plan figures.”

The announcements were made during a joint press conference in New Delhi by Foreign Secretary Vikram Misri and Union Minister Ashwini Vaishnaw, marking what authorities described as a transformative step in India-Bhutan connectivity and cooperation.

With inputs from ANI