India will fund and build Bhutan’s first-ever international rail links, a move set to transform connectivity and deepen strategic ties with the Himalayan nation. Union Railway Minister Ashwini Vaishnaw and Foreign Secretary Vikram Misri announced the projects on Monday.
India To Fund First Bhutan Rail Links
Two cross-border lines have been approved: Kokrajhar (Assam)–Gelephu (Bhutan) covering 69 km at an estimated cost of Rs 3,456 crore, and Banarhat (West Bengal)–Samtse (Bhutan) spanning 20 km at Rs 577 crore, as per a report on India Today. Fully financed by India, the projects are expected to be completed within four and three years, respectively.
Originally conceived in the early 2000s, the initiative gathered pace after Prime Minister Narendra Modi’s 2024 Bhutan visit, during which an MoU was signed to finalize the routes. A 2005 foundational agreement between both countries had identified five potential corridors, including Hasimara–Phuentsholing and Pathsala–Nanglam.
Foreign Secretary Misri described the Rs 4,033-crore plan as reflecting the “exceptional trust” between New Delhi and Thimphu, reported The New Indian Express. Strategically, the links enhance India’s presence near the sensitive Chicken’s Neck corridor, while economically, they support Bhutan’s plans to develop Gelephu as a Mindfulness City and Samtse as an industrial hub.
India is Bhutan’s largest trading partner, handling the bulk of its imports and exports. The new railway links are expected to streamline trade flows, expand Bhutan’s global market access, and reinforce regional stability.
