India-Bhutan Relations

India-Bhutan Hydropower Cooperation: Challenges and Way Forward

The February 2026 energy dialogue between India and Bhutan focused on operationalising Punatsangchhu and Sankosh hydropower projects. It marked a shift toward integrated grid partnership, addressing energy deficits, debt risks, and geopolitics, with a 2040 roadmap stressing solar diversification.

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INDIA-BHUTAN RELATIONS: SIGNIFICANCE, CHALLENGES AND WAY FORWARD

India and Bhutan share a unique partnership central to India's Neighbourhood First policy and regional security. PM Modi’s visit reaffirmed this bond, but China’s growing influence poses challenges. Strengthening sovereignty, expanding cooperation into digital and space sectors, and deepening people-to-people ties will keep the partnership future-ready.

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