AGP Executive Report

Bhutan–India Business: Bhutan and India are exploring deeper services cooperation after Business Connect 2026 in Thimphu, with focus on infrastructure, professional services, digital services and cross-border connectivity. Energy & Trade: Bhutan’s winter power imports are expected to continue until around 2034 as hydropower output drops seasonally while demand rises, keeping the supply-demand gap reliant on India. Hydropower Financing: India’s EAM Jaishankar visit underlined a new energy push, including a concessional INR 4,000 crore Line of Credit for Bhutan energy projects and foundations for additional hydropower initiatives. Digital Payments: Bhutan and India moved forward on UPI Phase-II, enabling more seamless digital payments for Bhutanese visitors to India. Banking for Women: Bhutan Development Bank Limited will roll out its women-focused lending scheme nationwide in October, pairing credit with financial literacy, business support and market opportunities. Local Governance & Jobs: 2,026 candidates qualified for competency certification ahead of the 2027 local government elections, while 1,994 candidates are competing for 742 civil service vacancies. Culture & Space Constraints: Bhutan’s traditional archers say development and safety concerns are shrinking available range space in Thimphu. Education Migration Risk: ABEC warns Australia has tightened student visa scrutiny, with most applications reportedly refused in recent months.

Bhutan–India Business Links: Bhutan and India are exploring deeper services cooperation at Thimphu’s Business Connect 2026, with focus on infrastructure, professional and digital services, and cross-border connectivity. Local Governance & Jobs: The Election Commission says 2,026 candidates cleared the FLT for the 2027 local government elections, with results released after FCA and FCE stages. Public Finance Skills: IMF-SARTTAC started a five-day public investment management training in Jaipur, aimed at faster project delivery and better outcomes. Energy Security: Bhutan expects winter electricity imports to continue until around 2034 as hydropower output drops seasonally while demand rises. Banking & Payments: Rupali Bank signed with Visa to expand its Visa card portfolio and digital payment services. Women’s Finance: BDBL will roll out its women-focused Aumtsue Peljor Thabrig lending scheme nationwide in October, pairing credit with financial literacy and business support. Thimphu Infrastructure: Funding has begun for the Lungtenzampa Bridge concept design, with a larger Nu 150m project planned. Civil Service Demand: 1,994 candidates registered for 742 civil service vacancies, with the technical category leading participation. Visa Scrutiny: ABEC warns Australia has tightened student visa approvals for Bhutanese applicants, with refusals rising sharply. Culture & Sports: The Bhutan International Ludo Championship concluded in Thimphu, while traditional archery faces pressure as development reduces available range space.

Energy & Trade Ties: India and Bhutan wrapped up EAM Jaishankar’s visit with a new INR 4,000 crore concessional Line of Credit for Bhutan energy projects, plus foundations for the 500kW Lunana Hydropower Project and progress on Punatsangchhu-I and II. Power Security: Bhutan expects winter electricity imports from India to continue until around 2034 as hydropower output drops sharply in lean months while demand peaks. Banking & Women’s Finance: Bhutan Development Bank Limited will roll out its women-focused Aumtsue Peljor Thabrig scheme nationwide from October, pairing credit with financial literacy and business support. Civil Service Jobs: 1,994 candidates are competing for 742 Bhutan Civil Service Examination vacancies, with the technical category leading. Digital Payments: Rupali Bank signed a deal with Visa to expand its Visa card portfolio and digital payment services. Visa & Education: ABEC says about 7 in 10 Bhutanese student visa applications to Australia are being refused amid tighter migration scrutiny. Urban Infrastructure: Thimphu has allocated Nu 3 million for concept design of the Lungtenzampa Bridge, part of a larger Nu 150 million plan. Business & Culture: The Bhutan International Ludo Championship concluded in Thimphu, with Bijay Kumar Monger winning Nu 300,000.

Women’s Finance Push: Bhutan Development Bank Limited (BDBL) will roll out its women-focused lending scheme, Aumtsue Peljor Thabrig, nationwide in October, pairing credit with financial literacy and business support through Women Banking Champions. Cross-Border Payments: Bhutanese travellers can now pay in India via UPI using participating Bhutanese mobile banking apps, following the Phase-II launch in Thimphu with India’s EAM Dr S. Jaishankar—making two-way digital payments easier for students, families and business travellers. Public Service Accountability: Bhutan’s 2026–27 Annual Performance Agreements (APAs) set clearer targets for ministries, agencies and local governments, with quarterly reviews to track progress and fix bottlenecks faster. Southern Health Infrastructure: Gelephu Mindfulness City Authority is seeking a consultant to assess and upgrade Gelephu General Hospital, aiming for tender-ready designs covering major systems and operational needs. Energy Security & Climate: Bhutan is expanding solar to ease winter hydropower shortfalls, with panels now covering a former military firing range near Thimphu as demand rises and imports become necessary. Education & Mobility: Bhutan’s Australia student visa risk profile is under growing scrutiny, with ABEC reporting a sharp rise in refusals and urging a “reset” in how applications and documentation are prepared. Tourism Momentum: Bhutan is among destinations seeing rising interest from Singapore travellers, with enquiries up around 40% in 2026. Global Recognition: Bhutan has been shortlisted for the 2026 Earthshot Prize in Protect & Restore Nature, highlighting its shift from forest protection to active landscape restoration.

Cross-border Digital Payments: Bhutanese travellers can now pay in India via UPI using participating Bhutanese banking apps, after India–Bhutan launched the second phase of two-way connectivity in Thimphu—making QR-based payments easier for students, families, tourists and business visitors. Gelephu Health Infrastructure: Gelephu General Hospital in the GMC area is set for a major overhaul, with GMCA seeking a consultant for gap assessment and tender-ready designs covering major systems and hospital operations. India–Bhutan Energy & Connectivity: EAM S Jaishankar’s visit concluded with a fresh INR 4,000 crore concessional line of credit for Bhutan energy projects, progress on hydropower, new development launches, and continued push on connectivity and education. Solar to ease winter crunch: Bhutan is expanding solar, including a Dechencholing solar farm on former military land, as winter hydropower shortfalls drive electricity imports. Education & Mobility Risk: Bhutanese student visa refusals in Australia are rising sharply, with ABEC warning of a perception shift and urging applicants to “reset” plans under tighter migration rules. Agriculture Commercialisation: IMPACT (USD 27m) was launched to help smallholder farmers in Bumthang and eastern districts earn more through stronger groups, buyer links and loan-ready business proposals. Local Elections Pipeline: FLT results for the 2027 local government elections show qualification rates of 70.51% (Level 1) and 81.57% (Level 2), shaping the early pool of aspirants. Tourism & Recognition: Bhutan was named a finalist for the 2026 Earthshot Prize (Protect & Restore Nature), highlighting its forest protection and landscape restoration push.

India–Bhutan Energy & Digital Push: EAM S. Jaishankar’s three-day visit to Bhutan wrapped up with fresh momentum on hydropower, connectivity, education and development, including a signed INR 4,000 crore concessional Line of Credit for Bhutan energy projects, progress on Punatsangchhu-II and resumption work on Punatsangchhu-I, plus two-way digital payment connectivity and EV handover. Renewables for Winter Power: Bhutan is turning a former military firing range near Thimphu into a solar farm as winter hydropower shortfalls deepen, with solar expected to take a bigger role in meeting rising winter demand. Bhutan-Linked Trade Disruption: Over 1,000 carbon-laden trucks reportedly stranded at Chagolia on NH-17 triggered a blockade by drivers, with some vehicles said to be bound for West Bengal and even Bhutan. Farmers to Earn More: IFAD-backed IMPACT (Inclusive Markets, Production, Agriculture Commercialisation and Transformation) was launched in Bumthang to link smallholders to buyers and loans, targeting 15,500 households across eastern districts. Tourism & Markets Watch: Bhutan’s tourism growth is highlighted alongside global leaders, while India’s UPI expansion and cross-border payment links continue to shape travel and commerce.

India–Bhutan Energy Deal: External Affairs Minister S Jaishankar wrapped up a productive visit to Bhutan, where India and Bhutan welcomed a concessional ₹4,000-crore Line of Credit for energy projects, alongside progress on Punatsangchhu hydropower (1020 MW Punatsangchhu-II inauguration and tariff protocol; resumption of Punatsangchhu-I dam construction). Digital Payments: Jaishankar and Bhutanese leaders also launched Phase-II of international UPI for Bhutanese citizens visiting India, completing two-way UPI-based digital payment connectivity. Development Projects: The visit saw joint inaugurations and launches including the 65-bed Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar and the Jaganathan Bridge, plus handovers such as 54 electric vehicles and 43 Jersey cows to support Bhutan’s e-mobility and dairy sector. Agriculture Commercialisation: The IMPACT project was launched in Bumthang to help about 15,500 smallholder households (with at least half women) move from producing more to earning more via stronger farmer groups, buyer links, and loan-ready business proposals. Regional Power Skills: BIMSTEC Energy Centre ran a five-day capacity programme in Bengaluru on new and emerging power technologies, with Bhutan participating in person. Tourism & Trade Context: UN-linked tourism figures highlighted Bhutan’s 31% visitor growth in 2026, while Thimphu’s marathon drew about 600 runners under a global peace theme.

India–Bhutan Energy Deal: External Affairs Minister S Jaishankar’s visit to Bhutan (Sept 16–18) wrapped up with both sides welcoming a ₹4,000 crore concessional Line of Credit for Bhutan energy projects, alongside progress on hydropower cooperation including Punatsangchhu-II (1020 MW) and resumption of Punatsangchhu-I (1200 MW). Digital Payments & Connectivity: Jaishankar and Bhutanese leaders also launched Phase-II of international UPI for Bhutanese visitors to India, completing two-way UPI connectivity, while discussing broader trade, connectivity and people-to-people ties. Development Push: The visit saw joint inauguration/launch of projects such as the 65-bed Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar and the Jaganathan Bridge, plus handover of 54 electric vehicles and 43 Jersey cows. Disaster Risk & Early Warning: A Himalayan Unnati Mission coalition of 134 groups called for a dedicated Himalayan Authority and early-warning network as cloudbursts, landslides and glacier hazards intensify across borders. Wildlife on the Border: Two wild elephant deaths were reported along the India–Bhutan border in Tamulpur within three days, with investigations pending post-mortems. Food & Farms: Bhutan’s push for food self-sufficiency by 2029 highlights farm-to-market bottlenecks, limited arable land and the need to make farming attractive for younger workers.

India-Bhutan Energy Push: External Affairs Minister S Jaishankar’s visit to Thimphu delivered a major boost for Bhutan’s power sector, with India and Bhutan signing a concessional ₹4,000 crore Line of Credit for energy projects, alongside progress on Punatsangchhu-II (1020 MW) and resumption of Punatsangchhu-I (1200 MW) dam work. Digital Payments & Connectivity: Jaishankar and Bhutan PM Tshering Tobgay launched Phase-II of international UPI for Bhutanese visitors to India, completing two-way UPI-based payment connectivity, while also exchanging an MoU to extend the Nehru Wangchuck Scholarship Scheme. Development Deliverables: The visit also saw key inaugurations and launches, including a 65-bed mother and child hospital in Mongar and the Jaganathan Bridge, plus support for e-mobility with 54 electric vehicles and dairy development via 43 Jersey cows. Disaster Risk Focus: The Himalay Unnati Mission coalition (134 partners) is calling for a dedicated Himalayan Authority and early-warning network as cloudbursts, landslides, floods and glacier hazards intensify. Wildlife & Border Alerts: A second wild elephant death in three days was reported along the India-Bhutan border in Tamulpur, with investigations pending post-mortem findings. Food & Farming Reality: Bhutan’s push for food self-sufficiency by 2029 highlights farm-to-market bottlenecks, limited arable land, and the need to make farming a viable profession.

India–Bhutan Energy Deal: India and Bhutan welcomed a concessional Line of Credit of ₹4,000 crore for Bhutan’s energy projects during EAM S. Jaishankar’s visit, alongside progress on Punatsangchhu-II (1020 MW) and resumption of Punatsangchhu-I (1200 MW) work. Digital Payments: Jaishankar and Bhutan PM Tshering Tobgay launched Phase-II of international UPI for Bhutanese visitors to India, completing two-way UPI-based payments between the two countries. Connectivity & Social Infrastructure: The visit also saw key project inaugurations, including a 65-bed mother and child hospital in Mongar and the Jaganathan Bridge in Samdrup Jongkhar, plus foundation steps for further hydropower. Agriculture & Dairy: India handed over 43 pureline Jersey cows to boost Bhutan’s dairy cattle breeding and milk productivity. Energy Diversification: Bhutan’s solar push is gaining momentum as winter hydropower shortfalls and climate pressures raise demand for diversification. Wildlife & Border Risk: A second wild elephant calf died in three days along the India–Bhutan border in Tamulpur, with investigations pending post-mortem results. Food Security Focus: Bhutan’s push for food self-sufficiency by 2029 highlights hurdles like limited arable land, transport bottlenecks, and scarce labor. Business/Tech Ecosystem: Apple expanded iCloud+ in Bhutan to include Apple TV and Apple Arcade at no extra cost, signaling continued growth in digital consumer services.

India–Bhutan Digital Payments: EAM S Jaishankar and Bhutan PM Tshering Tobgay launched Phase-II of international UPI, completing two-way UPI connectivity for Bhutanese users visiting India, alongside an MoU extending the Nehru Wangchuck Scholarship scheme. Bilateral Infrastructure & Health: Jaishankar and Bhutan’s FM DN Dhungyel jointly marked major projects—foundation for the 500-kW Lunana hydropower project, inauguration of the 65-bed Gyaltsuen Jetsun Pema Mother and Child Hospital in Mongar, and the Jaganathan Bridge in Samdrup Jongkhar—underlining continued India-backed development. Dairy Sector Boost: Jaishankar handed over 43 pureline Jersey cows to Bhutan’s National Cattle Breeding Centre in Bumthang, aiming to raise milk productivity and support farmers. Energy Diversification: A new AFP report highlights Bhutan’s growing solar push as winter hydropower shortfalls and climate pressures increase reliance on imported electricity. Wildlife Crime Crackdown: South Asian countries, including Bhutan, adopted the Kathmandu Declaration to intensify coordinated action against illegal wildlife trade via intelligence sharing, financial investigations and stronger prosecution.

India–Bhutan Deal-Making: External Affairs Minister S Jaishankar arrived in Thimphu for a two-day visit, welcomed by Bhutan’s Finance Minister Lyonpo Lekey Dorji, and during the trip he toured Bumthang, including Kurjey Lhakhang and the Wangduechhoeling Palace. Agri & Livestock Boost: Jaishankar handed over 43 pureline Jersey cows to Bhutan’s National Cattle Breeding Centre, aiming to raise milk productivity and support farmers (reported reach: 40,000). Energy Diversification: Bhutan’s winter power crunch is pushing a solar ramp-up alongside hydropower, with projects like Dechencholing (4.45MW) and Sephu (over 22MW) highlighted as demand grows and glacier risks loom. Bilateral Infrastructure Push: India and Bhutan marked major projects—foundation stone for the 500kW Lunana hydropower scheme, inauguration of a 65-bed mother-and-child hospital in Mongar, and a bridge in Samdrup Jongkhar—underlining ongoing development partnership. HCFC Compliance Watch: Bhutan’s HCFC phase-out drive to 2035 is raising concerns as some businesses reportedly hire cheaper foreign technicians, prompting calls for safer, certified servicing. Digital Payments & Fraud Risk: Bhutan’s growing online fraud problem is again in focus, with reports of nearly Nu 2 million lost to scams in just 12 days.

India–Bhutan deal flow: EAM S Jaishankar’s two-day visit to Bhutan (Sept 16-17) with Foreign Minister Lyonpo D.N. Dhungyel focused on development partnership, energy, trade, connectivity and people-to-people ties, alongside inaugurations and a hydropower foundation stone—65-bed Mother and Child Hospital in Mongar, Jaganathan Bridge in Samdrup Jongkhar, and the 500 kW Lunana Hydropower Project. Dairy push: Jaishankar also handed over 43 pureline Jersey cows to Bhutan’s National Cattle Breeding Centre in Bumthang to boost milk productivity for farmers. Energy diversification: Bhutan’s solar expansion is accelerating as winter river flows tighten, with projects like Dechencholing (4.45 MW) and Sephu (over 22 MW) pointing to a broader shift beyond hydropower-only reliance. EV rollout planning: Bhutan’s Department of Surface Transport released an EV charging masterplan proposing phased expansion across dzongkhags based on demand and grid proximity, warning against adding stations where existing ones are underused. Payments & banking tie-ins: Rupali Bank signed a Visa agreement to expand its Visa card business (reported in Bangladesh), while India’s UPI is set to introduce a 0.4% MDR on person-to-merchant payments above Rs 2,000 from Oct 15—an ecosystem sustainability move that keeps most everyday payments free. AI infrastructure with Bhutan link: Bitdeer’s update includes a non-binding plan to develop an AI data center in Bhutan’s Gelephu Mindfulness City, targeting 30 MW initially with a pathway to 500 MW.

Bhutan Energy & Climate: Bhutan is pushing solar as winter demand strains hydropower, with projects like Norion’s Dechencholing (4.45MW) and Druk Green Power’s broader plan to develop around 5,000MW to reduce reliance on imported Indian electricity. EV Infrastructure: Bhutan’s Department of Surface Transport has drafted an EV Charging Infrastructure Masterplan, targeting smarter placement of new public charging sites based on demand and road links; the network now has 41 stations and 74 chargers, with Thimphu driving most usage. India–Bhutan Ties: External Affairs Minister S. Jaishankar will visit Bhutan on Sept 16–17 for bilateral talks, royal audience with the King, and meetings with Bhutan’s Prime Minister—part of ongoing high-level cooperation. Digital Payments Watch (regional impact): India’s RBI-backed move introduces a 0.4% MDR on UPI person-to-merchant payments above Rs 2,000 from Oct 15 (merchant-paid, capped), keeping most everyday transactions free—an important policy shift for cross-border fintech and merchant planning. Local Business & Community: A Merak Gewog bakery story highlights how small rural enterprises can boost livelihoods and local spending, including more frequent community celebrations.

UPI Fees Debate: India’s government says UPI payments up to Rs 2,000 (and RuPay debit cards) must stay free, but a Merchant Discount Rate (MDR) of 0.4% is set for person-to-merchant transactions above Rs 2,000 from Oct 15, with a Rs 300 cap for very large payments—sparking pushback from critics who warn it could shift costs to small merchants. Bhutan Banking: Bhutan National Bank’s profit fell about 80% in H1 2026 as impairment charges rose, even as its loan book and deposits grew. Water & Climate Resilience: MoENR reports Paro’s springs are shrinking—16 surface-water sources already dried up and 117 are drying—prompting recharge-area protection and nature-based revival plans. Infrastructure: The Gelephu–Tareythang road alignment has been shortened by 1.5km to 12.6km, with construction targeted for June 2027 under a World Bank-supported project. Clean Cooking Pilot: In Chhumey, subsidised electric stoves are being rolled out to cut firewood use and support cleaner rural livelihoods. Disaster Preparedness: PM Tshering Tobgay says Bhutan is upgrading glacier and GLOF early warning systems, citing shared Himalayan risks after Nepal’s disaster. Local Business Feature: A Merak Gewog bakery is helping rural youth earn locally and making community celebrations more common. Regional Cooperation: Bhutan-linked media collaboration is being explored between Bhutan and Manipur journalists around shared Eastern Himalayan environmental challenges. Women in Politics: A BCMD needs assessment highlights that campaign costs, mobility, and childcare barriers start well before election day for women aspiring to local government roles. Hospitality Leadership: JK Urbanscapes appoints Jayanta Das as president for its hotel division, aiming to expand operations and revenue management.

UPI Policy Watch: India has directed banks and payment providers to keep UPI transactions up to ₹2,000 free of charges (and RuPay debit card payments too), while leaving open whether fees could apply above ₹2,000 via merchant MDR—sparking political heat from Rahul, who warned it could push costs into retail prices. Bhutan Banking: Bhutan National Bank’s profit plunged about 80% in H1 2026 to Nu 106.41m as impairment charges jumped and net interest income fell, even as loans and deposits grew. Border Towns & Trade: MoICE says Bhutan will revive border economies through infrastructure, industrial development, tourism and better business services—using dry ports like Pasakha and Nganglam (aiming full operation by June 2027) instead of a “price war” approach. Gelephu–Tareythang Road: A revised greenfield alignment cut the planned route by 1.5km to 12.6km; detailed design and contractor prequalification continue, with construction targeted for June 2027. Water & Climate Risk: MoENR is stepping up Paro water-source conservation after 16 surface sources dried and 117 are drying; PM Tshering Tobgay also flagged glacier/GLOF risks and the need to strengthen early warning systems. Clean Cooking Pilot: A subsidised electric cooking stove pilot in Chhumey is shifting remote households from firewood to cleaner cooking, with beneficiaries paying Nu 600 per stove. Regional Cooperation: Bangladesh’s Humaiun Kobir urged BIMSTEC members to look beyond bilateral tensions and widen engagement ahead of the 2027 Dhaka summit. Business & Growth: Yashoda Medicity targets break-even in 3 years and plans 600 more beds.