In a historic move to strengthen bilateral ties and regional connectivity, the Government of India has formally announced the first-ever railway links between India and the Kingdom of Bhutan, committing a total investment of ₹4,033 crore (approximately USD 485 million).

The ambitious project involves constructing two cross-border lines, totaling approximately 89 km, which will provide landlocked Bhutan with direct access to India’s extensive railway network for the first time.

• Total Outlay: The two lines combined will be constructed at a total investment of ₹4,033 crore, fully funded by the Government of India.
• Timeline: The Kokrajhar-Gelephu line is expected to be completed in four years, while the Banarhat-Samtse line has a target completion of three years.
• Infrastructure: The lines will be fully electrified and designed to accommodate modern trains, including the Vande Bharat Express.

The project is a major component of India’s commitment to supporting Bhutan’s economic development and is viewed as a strategic priority under the “Neighbourhood First” policy.

• Economic Hubs: The rail lines will connect key Bhutanese development centers—Gelephu, which is being developed as a “Mindfulness City,” and Samtse, which is emerging as an industrial town.
• Trade Facilitation: The connectivity will drastically improve the movement of goods and passengers, slashing freight costs and providing Bhutanese trade (which largely routes through Indian ports) with a seamless, high-capacity link to the global network.
• Developmental Support: This initiative comes as India doubles its development assistance to Bhutan, committing ₹10,000 crore for the Himalayan nation’s 13th Five-Year Plan (2024–2029).

Foreign Secretary Vikram Misri highlighted that the project stems from a Memorandum of Understanding (MoU) signed during Prime Minister Narendra Modi’s visit to Bhutan in March 2024, cementing a relationship of “exceptional trust and mutual respect.”