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India and Bhutan signed a concessional Line of Credit worth ₹4,000 crore (Nu 40 billion) on 31 July 2026, exchanged between the Export-Import Bank of India and Bhutan's Ministry of Finance during the Fifth India-Bhutan Development Cooperation Talks in Thimphu.
The LoC supports energy projects under Bhutan's 13th Five-Year Plan (2024-29); India has reaffirmed overall support of ₹10,000 crore for this Plan period.
The same day, AIIMS and Bhutan's Khesar Gyalpo University of Medical Sciences exchanged an MoU on medical research and education, and India handed over 45 electric vehicles for green mobility.
India's support package for Bhutan's 13th Plan includes Project Tied Assistance, High Impact Community Development Projects, the Economic Stimulus Programme, and Programme Grant.
A financing arrangement through which the Export-Import Bank of India provides concessional funds for specific projects in partner countries, a key instrument of India's development cooperation, especially in infrastructure and energy.
Simple Analogy: A pre-approved loan facility India extends to a partner government for agreed development projects, at below-market interest rates.
GS Paper II > India's Neighbourhood Relations
India's principal institution for official export credit and concessional financing abroad