India and Bhutan have agreed to enhance regional connectivity, focusing on projects like a 58-km cross-border rail link connecting Gelephu and Kokrajhar in Assam and an 18-km rail link between Samtse in Bhutan and Banarhat in West Bengal. This collaboration aligns with Bhutan's plan for a smart city at Gelephu, boosting trade and tourism between the two countries. Additionally, the Darranga-Samdrup Jongkhar border crossing was designated as an immigration check post, promoting smoother travel and facilitating exchanges with Bangladesh. These initiatives are expected to support Bhutan's economic growth and create employment opportunities.
In a significant development, India and Bhutan have reached a consensus to explore new regional connectivity routes and enhance border and immigration facilities, aligning with Bhutan's ambitious plan for a smart city at Gelephu, situated on the border between Bhutan and Assam. These discussions followed a meeting between Bhutan's fifth King, Jigme Khesar Namgyel Wangchuck, and Prime Minister Narendra Modi in New Delhi. Although there was no explicit mention of India's concerns about Bhutan's border delimitation agreement process with China, the Ministry of External Affairs affirmed that the leaders engaged in comprehensive discussions on bilateral cooperation and mutual regional and global interests.
Among the key decisions made, both countries agreed to proceed with the final survey for a 58-km cross-border rail link connecting Gelephu and Kokrajhar in Assam, a project to be undertaken by India. Additionally, they explored the possibility of establishing a second rail link spanning approximately 18 km between Samtse in Bhutan and Banarhat in the tea gardens area of West Bengal. India also granted permission for Bhutanese trade items to be transported further, extending from Haldibari in West Bengal to Chilahati in Bangladesh. This railway connectivity not only holds the potential to bolster air connectivity in the north eastern region of India but also aligns with Bhutan's plan to construct an international airport at Gelephu as part of the larger Sarpang district Special Economic Zone, with an official announcement slated for December 17.
A joint statement issued by both nations highlighted the invaluable insights shared by the Bhutanese King regarding ongoing reform processes in Bhutan. Prime Minister Modi reiterated India's steadfast commitment to their unique friendship and cooperation, emphasizing continued and unwavering support for Bhutan's socio-economic development based on the Royal Government's priorities and the vision of His Majesty.
Furthermore, the meeting resulted in the designation of the Darranga-Samdrup Jongkhar border crossing between Assam and Bhutan's less developed South Eastern district as an immigration check post. This strategic decision allows third-country nationals to enter and exit, promoting enhanced connectivity and tourism. The agreement also emphasized strengthening trade infrastructure, including the upgrade of an existing land customs station at Dadgiri in Assam to a modernized Integrated Check Post (ICP), coupled with the development of facilities on the Bhutanese side at Gelephu.
This initiative is anticipated to facilitate smoother travel between the two countries and enable expanded exchanges with Bangladesh, thereby increasing opportunities for trade and tourism and generating vital revenue for Bhutan. Amidst the challenges posed by the COVID-19 pandemic and the aftermath of a strict lockdown, Bhutan's economy is striving for growth, albeit at a modest rate of 4.3%, lower than the sub-regional average. Additionally, the country faces the long-term impact of youth out-migration, with young individuals seeking education and employment opportunities abroad. Bhutan's economic concerns are compounded by low forex reserves and a significant public debt, constituting an estimated 125% of the government debt to GDP ratio in 2022, primarily owed to India.
In light of these challenges, King Jigme Khesar Namgyel Wangchuck's vision for Gelephu and the special economic zone holds promise, aiming to create more employment and tourism prospects in Bhutan. Following the meeting in New Delhi, the Bhutanese King is scheduled to visit Mumbai, where he is expected to meet with leaders of prominent business houses, marking another step toward fostering economic collaboration and growth.
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