India and Bhutan have taken a historic step toward deeper economic and connectivity ties with the announcement of their first cross-border rail project.
The initiative, unveiled on Monday, September 29, will link Bhutan’s Gelephu and Samtse with India’s railway network at Kokrajhar and Banarhat. Foreign Secretary Vikram Misri described the move as a 'major new initiative' during a joint press briefing in New Delhi with Union Railway Minister Ashwini Vaishnaw. The memorandum of understanding (MoU) for the project, initially discussed during Prime Minister Narendra Modi’s 2024 visit to Bhutan, will be formally signed later today in the presence of Bhutan’s Foreign Secretary.
Key Details of the Rail Project
The total length of the new railway lines is set at about 90 kilometres, with 89 kilometres of network to be developed.The project will cost Rs 4033 crore and will be fully funded by India under the ‘Make in India’ initiative.
Technology and coaches for the new line will be manufactured in India.
Gelephu, envisioned as a mindfulness hub and Samtse, an industrial centre, will be directly connected through the project.
Misri underlined that the project would enhance both passenger and cargo movement, creating a seamless trade route for Bhutan. Vaishnaw, highlighting the significance, said, “India is Bhutan’s largest trading partner, and most of Bhutan’s trade passes through Indian ports. Seamless rail connectivity is therefore critical for Bhutan’s economic growth and for linking its people to the global network.”
The announcement also comes against the backdrop of India’s broader support for Bhutan’s development. Misri noted that New Delhi has committed Rs 10,000 crore towards Bhutan’s 13th Five-Year Plan (2024–2029), double the support extended in the previous plan. This assistance covers project-wide initiatives, community development, and an economic stimulus program.
Reaffirming the strong bilateral ties, Misri said, “India and Bhutan share a relationship of exceptional trust, mutual respect and understanding, rooted in cultural and civilizational ties as well as shared developmental and security interests.” He also recalled PM Modi’s visit to Thimphu earlier this year, when he was conferred Bhutan’s highest civilian award, the Order of the Druk Yalpo.
The landmark rail link, once completed, is expected to boost trade, strengthen connectivity and open new opportunities for Bhutan’s economy, while further deepening the partnership between the two nations.
