India–Bhutan Rail Connectivity Projects to Deepen Trade and Regional Integration

Context:

• India and Bhutan have announced two new cross-border rail connectivity projects aimed at enhancing economic integration, trade facilitation, and people-to-people ties.

• The projects reflect India’s commitment to neighbourhood-first policy and infrastructure-led regional cooperation.

• The announcement follows a bilateral MoU signed during Prime Minister Narendra Modi’s visit to Bhutan in March 2024.

Key Highlights:

New Rail Links Announced

• Two railway lines approved:

  • Kokrajhar–Gelephu (Assam–Bhutan)

  • Banarhat–Samtse (West Bengal–Bhutan)

• Total rail length: 89 km

• Total estimated cost: ₹4,033 crore

• Both lines will be designed to operate Vande Bharat trains, ensuring modern and high-speed connectivity.

Project Timelines

• Kokrajhar–Gelephu line:

  • Completion target: 4 years

• Banarhat–Samtse line:

  • Completion target: 3 years

Infrastructure Specifications

• Kokrajhar–Gelephu Corridor:

  • 6 stations

  • 2 viaducts

  • 29 major bridges and 65 minor bridges

  • 2 goods sheds

  • 1 flyover and 39 underpasses

• Banarhat–Samtse Corridor:

  • 2 stations

  • 1 major flyover

  • 24 minor flyovers

  • 37 underpasses

  • Project cost: ₹577 crore

Economic and Trade Significance

• Rail connectivity will provide Bhutan seamless access to Indian ports, strengthening EXIM trade.

• Improved logistics will reduce transport costs, boosting Bhutanese exports and industrial activity.

• Supports Bhutan’s integration with global supply chains via India.

Multimodal Connectivity Boost

• The projects complement the Jogighopha Inland Waterways Transport Terminal, inaugurated in February, enhancing multimodal transport options.

• Inland waterways will further reduce freight costs and improve cargo movement efficiency.

Development Assistance and Strategic Partnership

• India has committed ₹10,000 crore as development assistance for Bhutan’s 13th Five-Year Plan (2024–2029).

• This represents a doubling of support compared to the previous plan, underscoring deepening bilateral trust.

• India and Bhutan already cooperate on five major hydropower projects:

  • Chukha

  • Tala

  • Mangdechhu

  • Kurichhu

  • Punatsangchhu II

Strategic and Regional Implications

• Enhances India’s connectivity to the eastern Himalayan region.

• Strengthens Bhutan’s economic resilience while reinforcing India’s strategic influence in South Asia.

• Aligns with India’s Act East Policy and regional infrastructure diplomacy.

UPSC Relevance (GS-wise):

• GS Paper 2 – International Relations

  • Prelims:

    • India–Bhutan relations, neighbourhood-first policy, development assistance.

  • Mains:

    • Role of connectivity in strengthening bilateral relations.

    • Infrastructure diplomacy as a tool of foreign policy.

• GS Paper 3 – Indian Economy

  • Prelims:

    • EXIM trade, inland waterways, rail infrastructure.

  • Mains:

    • Impact of cross-border connectivity on trade, logistics, and regional development.

    • Importance of multimodal transport networks for economic integration.