India and Bhutan have announced plans to construct their first cross-border railway lines, a landmark $454 million project aimed at boosting connectivity, trade, and regional integration. The initiative, unveiled in New Delhi on Monday, is expected to be completed within four years.
Indian Foreign Secretary Vikram Misri described the project as a natural extension of India’s role as Bhutan’s closest economic partner, highlighting its contribution to the Himalayan kingdom’s ongoing modernisation.
Railways Minister Ashwini Vaishnaw said the lines would be transformative: “This will be of immense benefit to the people of Bhutan. Goods movement that today takes days will be completed in just a few hours. The entire area will be connected like never before.”
Two Strategic Rail Links
The project includes two key routes:
A 69-kilometre line costing 34.56 billion rupees ($390 million) will connect Kokrajhar in India’s northeast to Gelephu, a Bhutanese border town of 10,000 people earmarked for development into a major economic hub.
A second 20-kilometre line, estimated at 5.77 billion rupees, will link Bhutan’s northwestern industrial centre of Samtse to Banarhat in eastern India.
Economic and Strategic Importance
Bhutan, a landlocked nation of under 800,000 people, has long prioritised its philosophy of Gross National Happiness over conventional growth models.
But officials see the Gelephu project as a chance to create a vibrant economic zone, attracting investors and tourists while positioning the country as a gateway between South Asia and Southeast Asia.
“It is envisaged as an economic hub connecting Bhutan with South Asia and beyond,” Misri noted.
Vaishnaw added that the new train lines will be fully electric and designed to be as environmentally friendly as possible, aligning with Bhutan’s commitment to sustainability.
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