India, Bhutan to connect by rail for the first time with total outlay of Rs. 4,033 crore (US$ 454 million)
- IBEF
- September 30, 2025
India has announced a landmark Rs. 4,033 crore (US$ 454 million) railway project to strengthen connectivity with Bhutan, marking a major step forward in bilateral relations. Minister of Railways, Information & Broadcasting, and Electronics & Information Technology, Mr. Ashwini Vaishnaw, and Foreign Secretary, Mr. Vikram Misri, confirmed plans to build two new cross-border railway links, connecting the Indian network to Gelephu and Samtse in Bhutan. Gelephu, being developed as a mindfulness city, and Samtse, an industrial hub, will be linked through Kokrajhar in Assam and Banarhat in West Bengal, respectively, giving Bhutan its first-ever railway access. The 70 km Kokrajhar-Gelephu line will connect to Bongaigaon, a key industrial centre in India, providing Bhutan with seamless access to India’s 1,50,000 km railway network. The Banarhat-Samtse stretch, covering 16 km, will enhance trade and mobility between the two nations.
Foreign Secretary, Mr. Vikram Misri, highlighted that India remains Bhutan’s largest trading partner and developmental ally. For Bhutan’s 13th Five-Year Plan (2024-2029), India has pledged Rs. 10,000 crore (US$ 1.13 billion), doubling its support from the previous plan to fund high-impact community development projects, infrastructure upgrades, and economic stimulus measures. The Indian government fully funds the railway project. It is designed to boost Bhutan’s economic growth by improving trade logistics and regional integration. With this initiative, India and Bhutan reinforce their long-standing partnership rooted in cultural ties, mutual trust, and shared developmental goals.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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