AGP Executive Report

Digital Payments: UPI hit a fresh record in July, with transaction value rising to Rs 29.88 lakh crore and volume reaching 23.66 billion, up 19% year-on-year, as NPCI data shows India’s cashless push keeps accelerating. US Visa Policy: The United States has made its “visa bond” programme permanent for B-1/B-2 applicants from 50 countries, including Bhutan, with refundable deposits up to $20,000 required at consular discretion from August 3. Bhutan-India Connectivity & Health: India and Bhutan reviewed development ties and approved 12 new projects under the 13th Five-Year Plan, alongside a Rs 4,000-crore LoC agreement; separately, Gelephu Mindfulness City’s GMC signed with Singapore’s KKH to set up Bhutan’s first IVF centre. Infrastructure in Bhutan: The Gelephu–Tareythang Road project reached a key planning milestone, with the DPR expected to be completed this year before tendering and construction next year. Local Health Gap: Paro district leaders voted to request a permanent gynaecologist after a decade without one, despite strong maternal and neonatal outcomes. Culture & Tourism: Bhutan registered its first four Geographical Indication products, and H1 2026 tourism rose to 149,141 visitors (+48.14% y/y) with new air links and hotel openings.

India–Bhutan Development: Foreign Secretary Vikram Misri’s Thimphu visit wrapped up with 12 new projects worth ₹332 crore and a ₹4,000 crore Line of Credit for energy, as both sides reviewed cooperation under Bhutan’s 13th Five-Year Plan. Southern Connectivity: Bhutan’s Gelephu–Tareythang Road Project has reached a key planning milestone, with the Detailed Project Report due by year-end and construction expected to start mid-next year, aiming to cut travel time and protect wildlife habitats. Healthcare Upgrade: Gelephu Mindfulness City Authority partnered with Singapore’s KK Women’s and Children’s Hospital to set up Bhutan’s first IVF centre, bringing technical support and training. Digital Finance Link: India and the Maldives operationalised the Favara–UPI cross-border corridor, enabling instant INR credits to UPI-enabled accounts in India from Maldives transfers. UPI Records: UPI hit a new July high of Rs 29.88 lakh crore across 23.66 billion transactions, with Bhutan listed among the countries where UPI is live. US Visa Policy Impact: The US made its visa bond programme permanent from Aug 3, with consular officers able to require refundable deposits up to $20,000 for B1/B2 applicants from 50 countries including Bhutan. Tourism Watch: Bhutan’s H1 2026 tourism rose to 149,141 visitors, up 48.14% year-on-year, supported by expanded air links and new hotel openings. Culture & IP: Bhutan registered its first four Geographical Indication products, including Bumthang Honey and Merak-Sakteng Zoetey, to protect place-linked traditional goods. Sports: The SAFF Championship 2026 draw in Thimphu placed hosts Bangladesh, Sri Lanka and Bhutan in Group A, while defending champions India were drawn with Maldives and Pakistan in Group B.

India-Bhutan Development: Foreign Secretary Vikram Misri wrapped up talks in Thimphu approving 12 new projects worth Rs 332 crore and signing a Rs 4,000-crore energy Line of Credit with EXIM Bank, alongside an AIIMS–Khesar Gyalpo MoU for health education and research. Water Security: Bhutan launched a Climate Adaptation Investment Plan for the water sector, targeting 187 adaptation activities across drinking water, irrigation, flood and glacial lake outburst flood protection, with an estimated USD 847 million over 15–20 years. Digital Finance: UPI hit a record Rs 29.88 lakh crore in July (23.66 billion transactions), while India’s cross-border push also saw Maldives launch Favara–UPI real-time transfers. Crypto Governance: Gelephu Mindfulness City named 3iQ Corp as the first institutional manager for part of its Bitcoin treasury. Sports: SAFF Championship 2026 draw placed India with Maldives and Pakistan in Group B, with the tournament in Dhaka in November. Environment & Livelihoods: A Bhutan incense-maker’s cypress plantation in Wangdue Phodrang shows how local forestry can secure raw materials while easing pressure on forests.

India–Bhutan Development Talks: Foreign Secretary Vikram Misri met Bhutanese leaders in Thimphu as both sides reviewed India-backed projects under Bhutan’s 13th Five-Year Plan, approving 12 new Project Tied Assistance projects worth ₹332 crore and signing a concessional ₹4,000-crore Line of Credit for energy and development. Health Cooperation: A separate pact links AIIMS with Khesar Gyalpo University of Medical Sciences to expand health education and research. Digital Finance (Regional): The Maldives launched the Favara–UPI cross-border corridor, enabling real-time person-to-person transfers from Malé to UPI-enabled Indian bank accounts via two participating banks. Climate & Jobs: A World Bank report warns extreme heat is costing South Asia the equivalent of 31 million full-time jobs annually and could cut the region’s economy by nearly 7% by 2050, with Bhutan included in the affected countries. Bhutan Energy/Urban Funding: ADB financing of USD 173.5 million supports cleaner energy expansion and urban development in Bhutan. Gelephu Crypto Management: Bhutan’s Gelephu Mindfulness City appointed 3iQ to manage part of its Bitcoin treasury under a long-term mandate.

India-Bhutan Development Boost: Foreign Secretary Vikram Misri and Bhutan’s counterpart Dasho Pema Lektup Dorji co-chaired the 5th India-Bhutan Development Cooperation Talks in Thimphu, reviewing delivery under Bhutan’s 13th Five-Year Plan and approving 12 new Project Tied Assistance projects worth ₹332 crore across infrastructure, healthcare, agriculture, urban amenities and disaster management. ₹4,000-crore LoC & Health Link: The talks also saw a concessional Line of Credit agreement of ₹4,000 crore (Nu 40 billion) signed between India’s Exim Bank and Bhutan’s Ministry of Finance, plus an MoU between AIIMS and Khesar Gyalpo University of Medical Sciences to expand medical education and health research. Green Mobility Push: As part of India’s sustainability support, 45 electric vehicles were handed over to Bhutan. Gelephu Bitcoin Management: Bhutan’s Gelephu Mindfulness City appointed Canadian digital-asset manager 3iQ to manage part of its Bitcoin treasury under a long-term mandate, with details of the mandate value and fees not disclosed. Damphu Economic Hub: Tsirang’s district administration is building a new Economic Hub in Damphu, aiming to complete it by August next year with a market shed for organic produce and other community facilities.

India-Bhutan Development Push: Foreign Secretary Vikram Misri met Bhutan’s Dasho Pema Lektup Dorji in Thimphu to review India-backed projects under Bhutan’s 13th Five-Year Plan, including virtual inauguration of the Thimphu Ecological Park and Olakha Park, plus a new health education and research MoU between AIIMS and KGUMSB. Concessional Finance: India and Bhutan exchanged a concessional line of credit agreement worth Rs 4,000 crore (Nu 40 billion) via EXIM Bank of India and Bhutan’s Ministry of Finance to fund development initiatives. Gelephu Bitcoin Plan: Gelephu Mindfulness City appointed 3iQ to manage part of its Bitcoin treasury, with a mandate to set up a long-term presence, train local staff, and support an institutional digital-asset fund ecosystem. Judicial Independence Debate: Bhutan’s proposed constitutional bill to extend retirement ages for Supreme Court and Court of Appeal judges is being criticised as a mid-stream move that could undermine judicial credibility. Women’s Safety at Work: Bhutan Broadcasting Service reports women taxi drivers face harassment and threats, with groups working on training and support to improve safety and livelihoods. Human-Tiger Coexistence: Three community projects were launched in Nubi, Trongsa, to cut livestock losses and prevent tiger conflicts, including an early-warning approach using AI and sensors.

India-Bhutan Development Talks: Foreign Secretary Vikram Misri and Bhutan’s Dasho Pema Lektup Dorji co-chaired the 5th India-Bhutan Development Cooperation Talks in Thimphu, reviewing India-supported projects under Bhutan’s 13th Five-Year Plan; the sides also virtually inaugurated Thimphu Ecological Park and Olakha Park and exchanged an INR/Nu 40 billion concessional line of credit, plus AIIMS–KGUMSB cooperation, while 45 EV cars were handed over. Digital Assets in Gelephu: 3iQ will manage part of Gelephu Mindfulness City’s Bitcoin treasury under a strategic partnership, including local staff training and a long-term presence aimed at building an institutional-grade digital asset hub. Human–Tiger Coexistence: Three community projects were launched in Trongsa’s Nubi Gewog on Global Tiger Day to reduce livestock losses, including an early-warning approach using AI and sensors and a results-based Tiger Impact Certificate framework. Labour & Public Service Accountability: Bhutan’s Labour Department ordered Bhutan Broadcasting Service to compensate its former Chief Editor over recruitment/appointment delays and grade mismatch, and recommended recruitment reforms. Women’s Safety at Work: A BBS report highlights risks faced by Bhutan’s women taxi drivers, including harassment and threats during late-night fares, alongside support efforts by groups like RENEW. Climate Pressure: A World Bank report warns extreme heat could cut South Asia’s economy by nearly 7% by 2050, with Bhutan included among the affected countries.

Bird Migration & Bhutan: A new report highlights the Central Asian Flyway—an ~9,000 km “invisible highway” that links northern Eurasia to South Asia, including Bhutan, via a network of rest and feeding habitats across 30 countries. Tourism & Hospitality Policy: The Hotel and Restaurant Association of Bhutan (HRAB) is pushing for clearer, more practical rules after hoteliers questioned Bhutan’s hotel classification staffing requirements and the Economic Stimulus Programme (ESP) interest subsidy eligibility, saying many seasonal or distressed hotels can’t qualify. Energy & Schools: Bhutan’s Ministry of Energy and Natural Resources has tendered rooftop solar for three grid-tied school projects, with bids due Aug 24, as solar capacity continues to expand. Trade Facilitation: A dedicated Budhini Immigration Facilitation Office in Samtse is now set to speed up clearance for industrial trucks serving Norbugang Industrial Park, aiming to cut border delays and logistics costs. Forestry & Timber Jobs: Bhutan is moving to expand private sector participation in timber harvesting and wood processing to boost supply and value-added manufacturing. Conservation Culture: On Global Tiger Day, Bhutanese researchers and the Druk Nyo Foundation promoted tiger conservation through Buddhist scriptures and traditional values, arguing coexistence starts with local beliefs. Health Research Link: Rutgers launched a U.S. study tracking Alzheimer’s and dementia risk among South Asian Americans, noting South Asians are underrepresented in research.

Hospitality Policy: The Hotel and Restaurant Association of Bhutan (HRAB) is pushing for clearer, more practical hotel classification rules after only 25 of 284 hotels qualified for the Economic Stimulus Programme (ESP) interest subsidy, with owners warning the eligibility checks are too rigid for seasonal businesses. Solar Push: Bhutan’s Ministry of Energy and Natural Resources has invited bids to install three grid-tied rooftop solar systems at schools, with remote monitoring included, as the country scales up solar capacity. Trade Facilitation: A dedicated Budhini Immigration Facilitation Office in Samtse has opened to speed up cross-border clearance for industrial trucks serving the Norbugang Industrial Park. Carbon Markets: Bhutan’s Department of Environment and Climate Change signed an MoU with the Global Carbon Council to build readiness for international carbon markets. Public Safety: Royal Bhutan Police data shows domestic violence rose in the first half of 2026, even as overall crime fell, with alcohol, financial stress and social media disputes flagged as drivers. Regional Business Link: Assam’s Purabi ice cream has started exporting to Bhutan, with the first shipment of 5,627 litres headed to markets including Thimphu and Paro.

Bhutan-India Trade Facilitation: Bhutan opened a dedicated Budhini Immigration Facilitation Office in Samtse for Norbugang Industrial Park trucks, aiming to speed up cross-border clearance for raw inputs and exports. Forestry & Timber Economy: The government is expanding private sector participation in timber harvesting and wood processing to boost supply, efficiency, and investment in value-added manufacturing. Carbon Markets Readiness: Bhutan’s Department of Environment and Climate Change signed an MoU with the Global Carbon Council to build capacity for Article 6 carbon market governance, methodologies, and digital registry systems. Plastic Waste Push (Gelephu/Phuentshogling): A Phuentshogling recycling plant remains idle while awaiting approval, and Gelephu vendors say switching away from plastic bags is hard because customers still expect them. Investment Pipeline: MoICE invited all 20 dzongkhags to pitch investment-ready projects for the 2nd Invest Bhutan Summit (Jan 11–12, 2027). Hydropower Progress: Public consultation backed the 180MW Bunakha Hydropower Project, with a storage reservoir planned to strengthen winter generation.

Carbon Markets: Bhutan’s Department of Environment and Climate Change has signed an MoU with the Global Carbon Council to build capacity for high-integrity carbon market participation, covering governance, methodologies, project development, registration and digital registry readiness. Plastic Waste: In Phuentshogling, a plastic recycling facility remains idle months after machines were installed, awaiting approval from Druk Holding and Investments. Investment Push: Ahead of the 2nd Invest Bhutan Summit (Jan 11–12, 2027), MoICE has invited all 20 dzongkhags to pitch investment-ready projects to attract quality FDI beyond urban centres. Energy & Water: Public consultation has backed Bhutan’s proposed 180MW Bunakha Hydropower Project, aimed at boosting winter generation through a storage reservoir. Jobs & Mobility: Bhutan’s first placements under Singapore’s Non-Traditional Sources work permit scheme have secured eight service-sector jobs, with more pathways expected. Regional Politics: India again blamed Pakistan for stymieing SAARC cooperation, while Nepal’s FM met BIMSTEC leaders to push regional collaboration. Culture & Soft Power: Five artists are competing for Bhutan’s Eurovision Song Contest Asia 2026 spot, with the finale on Aug 11. Trade Linkages: Assam flagged off its first-ever commercial dairy export to Bhutan—5,627 litres of Purabi Premium ice cream—opening a new market for Assam dairy farmers.

Hydropower & Energy Security: Bhutan’s Bunakha 180MW hydropower project won strong local backing after a public consultation in Chhukha, with residents hearing design, environmental and social safeguards, and resettlement plans; the storage reservoir is key for boosting winter generation. Carbon Markets: Bhutan’s Department of Environment and Climate Change signed an MoU with the Global Carbon Council to strengthen readiness for Article 6 carbon market participation, covering governance, methodologies, project development, and digital registry infrastructure. Digital Connectivity: Bhutan’s Third International Internet Gateway is in its final preparatory stage, awaiting Indian regulatory clearances for a cross-border fibre point-of-interconnection survey. Economy & Trade: New trade data shows Bhutan’s import-heavy pattern continues, with a Q1 2026 trade deficit of about Nu 20.4 billion and major import categories like machinery, fuels, and vehicles. Jobs & Industry: Industrial parks generated 5,438 jobs, but newer estates still face idle plots and delayed operations, slowing investment and output. Overseas Work: Bhutan’s first placements in Singapore’s NTS Work Permit scheme secured eight service-sector jobs, with more opportunities expected as recruitment expands. Policy & Governance: The Supreme Court in Nepal sought the government’s response on allowing MPs to hire personal secretaries, raising concerns over public funds and constitutional limits. RUB Education Rules: Bhutan’s Royal University plans stricter admission withdrawal rules, including financial penalties, to reduce wasted seats and disrupted planning. Upcoming Summit: Bhutan will host the inaugural Asia Visionary Summit (6–8 Nov 2026) focused on innovation, sustainability, and Gelephu Mindfulness City.

Asia Visionary Summit: Bhutan will host the inaugural Asia Visionary Summit on 6–8 November 2026, an invitation-only gathering of fewer than 500 leaders focused on innovation, sustainability and the future of Gelephu Mindfulness City. Climate & Carbon Markets: The Global Carbon Council signed an MoU with Bhutan’s Department of Environment and Climate Change to strengthen Bhutan’s readiness for international carbon markets, including governance, methodologies and digital registry systems. Jobs & Industry: Bhutan’s industrial parks generated 5,438 jobs in FY 2025–26, but occupancy gaps remain as newer parks still have idle plots, slowing investment and production. Overseas Work: Eight Bhutanese workers have secured Singapore jobs under the Non-Traditional Sources Work Permit scheme, opening a new regulated pathway for service-sector employment. Trade Pressure: Bhutan’s Q1 2026 trade deficit hit about Nu 20.4 billion, with imports far outpacing exports and machinery, fuel and vehicles dominating the import bill. Digital Connectivity: Bhutan’s third international internet gateway is awaiting final Indian regulatory clearances after progress on cross-border coordination steps. Public Safety: Royal Bhutan Police data for Jan–Jun 2026 shows a rise in cases involving children in conflict with law, sexual offences, and vandalism of chorten and Lhakhangs.

Regional Diplomacy: Maldives President Mohamed Muizzu urged SAARC revival, calling for dialogue to break the current deadlock and offering to mediate for “regional peace and cooperation.” Bhutan Digital Connectivity: GovTech says Bhutan’s Third International Internet Gateway is in its final preparatory stage, awaiting Indian regulatory clearances for a joint border survey needed to complete the cross-border fibre link. Trade & Imports: New Q1 figures show Bhutan imported Nu 34.86 billion but exported Nu 14.47 billion, leaving a Nu 20.4 billion trade deficit, with machinery, fuels, and even food imports highlighting the “import trap.” Higher Education Rules: The Royal University of Bhutan plans tighter admission rules from next year, including penalties, to curb students accepting seats then withdrawing. Climate Pressure: Bhutan’s Glacier Inventory 2026 reports the loss of 27 glaciers in nine years, raising water-security and glacial lake outburst flood risks. Tourism & Food: Phuentshogling hotels and restaurants are being trained to serve more authentic Bhutanese vegetarian dishes, supported by a new cookbook.

Digital Identity & Governance: Bhutan’s National Digital Identity Act 2023 is being framed as a serious step toward a secure, inclusive, service-focused national identity system—moving the conversation from “awards” to real public utility. Higher Education Discipline: The Royal University of Bhutan is tightening admission rules after years of students accepting seats and then withdrawing, leaving unused places and wasted budgets; from next year, stricter penalties are set to discourage last-minute dropouts. Climate & Water Security: Bhutan’s Glacier Inventory 2026 reports the country has lost 27 glaciers in nine years, with glacier area shrinking by over 9%, raising concerns for long-term water supply and glacial lake outburst flood risks. Local Tourism & Culture: In Phuentshogling, a new initiative is training chefs and compiling recipes for authentic Bhutanese vegetarian cuisine—aimed at helping hotels and restaurants serve more than the usual staples. Well-being Research: A Thimphu workshop explored building an international alliance to advance GNH-inspired development, placing well-being alongside GDP in global measurement.

Bhutan’s GNH push goes global: A Thimphu workshop explored creating an international alliance to measure and govern development around well-being, building on UN moves to go beyond GDP. Digital identity and public services: Bhutan’s National Digital Identity Act 2023 is framed as a foundation for a secure, inclusive identity infrastructure that can power services with trust and interoperability. RUB admission crackdown: The Royal University of Bhutan will tighten rules from next year, adding financial penalties to curb students who accept places and then withdraw, leaving seats unused. Crowdfunding firm goes missing: RSEBL says it cannot contact Himalayan Food, after the company raised nearly Nu 4.5 million through an equity crowdfunding platform years ago. Climate stress at home: Bhutan’s Glacier Inventory 2026 reports the loss of 27 glaciers in nine years, raising concerns for water security and glacial lake outburst flood risks. Tourism and food culture: Phuentshogling is promoting authentic Bhutanese vegetarian cuisine beyond ema datshi through chef training and a new cookbook. Regional context: Nepal reported 1.2 million foreign tourist arrivals in FY 2082/83, with India as the top source market.