Indian PM Narendra Modi inaugurates 1020MW Punatsangchhu-II hydropower project in Bhutan, strengthening bilateral energy partnership and trade ties.
THIMPHU: Indian Prime Minister Narendra Modi arrived in Bhutan on Tuesday to inaugurate a major hydropower project with King Jigme Khesar Namgyel Wangchuck.
The leaders will officially open the 1020 megawatt Punatsangchhu-II hydropower facility, one of Bhutan’s largest energy projects developed in partnership with India.
Modi described the visit as strengthening bilateral relations under India’s “neighbourhood first” policy.
“The visit will also mark another major milestone in our successful energy partnership,” Modi stated before departing New Delhi.
Hydropower represents Bhutan’s primary export, contributing nearly two-thirds of its total exports according to the Bhutanese embassy.
India serves as Bhutan’s main trading partner, accounting for over 80% of its trade totaling RM8.5 billion in 2024-25.
Indian exports to Bhutan reached RM6.2 billion last year, including petroleum products, iron, steel, grains and smartphones.
Bhutan exported RM2.4 billion worth of goods to India, primarily electricity and construction materials.
The carbon-negative kingdom leverages its abundant hydropower for cryptocurrency mining operations.
Bhutan’s state investment arm allocated RM2.6 billion to establish cryptocurrency operations in 2021-2022.
The mountainous nation continues seeking economic diversification amid challenges with youth unemployment and outward migration.
New Delhi announced plans in September to construct Bhutan’s first cross-border railway connection.
The strategically located kingdom maintains careful diplomatic balance between neighboring giants China and India. – AFP
