AGP Executive Report

Civil Service Push: Nearly 2,000 Bhutanese candidates have registered for the 2026 BCSE main exam, competing for 742 civil service vacancies, with the technical stream leading the field. India-Bhutan Energy & Connectivity: EAM S. Jaishankar’s visit wrapped up with a new INR 4,000-crore concessional line of credit for Bhutan energy projects, plus progress on Punatsangchhu works and a foundation stone for the Lunana hydropower project. Winter Power Outlook: Bhutan expects seasonal electricity imports from India to continue until around 2034 as hydropower output drops in winter while demand rises. Public Service Accountability: The government signed 2026–27 Annual Performance Agreements to tighten results, monitoring and quarterly reviews across ministries, local governments and thromdes. Health Watch: Bhutan’s Annual Health Bulletin 2026 reports over 114,000 notifiable disease cases, with ARI and diarrhoeal illnesses dominating, pointing to ongoing sanitation and hygiene gaps. Thimphu Infrastructure: Funding has begun for the Lungtenzampa Bridge concept design, the first step toward a larger Nu 150 million project. Women’s Finance: BDBL will roll out its women-focused Aumtsue Peljor Thabrig scheme nationwide from October, pairing credit with financial literacy and business support. Culture & Heritage: The Royal Family consecrated the restored Pelri Dorjidhen Tsulakhang in Nobgang, reinforcing efforts to preserve the historic village landscape.

Cross-border Payments: Bhutanese travellers can now pay in India via UPI by using supported Bhutanese mobile banking apps, expanding two-way digital payments launched in Thimphu with India’s EAM Dr S. Jaishankar. Energy & Connectivity: India and Bhutan deepened ties after Jaishankar’s visit, including an INR 4,000-crore concessional line of credit for energy projects and progress on connectivity and education cooperation. Local Governance Accountability: Bhutan’s Annual Performance Agreements for 2026–27 set clearer targets for ministries, thromdes and local governments, with quarterly reviews to track results and fix bottlenecks. Women’s Finance: BDBL will take its women-focused Aumtsue Peljor Thabrig lending scheme nationwide in October, pairing credit with financial literacy and business support. Health & Infrastructure: Gelephu General Hospital is set for a major overhaul as Gelephu Mindfulness City prepares tender-ready designs after a technical assessment. Conservation Spotlight: Bhutan has been shortlisted for the 2026 Earthshot Prize in Protect & Restore Nature, highlighting forest protection and landscape restoration amid climate pressures. Tourism Interest: Singapore travellers are increasingly looking beyond usual destinations, with Bhutan seeing a reported surge in enquiries.

Bhutan–India Digital Payments: Bhutanese travellers can now pay in India via UPI by scanning merchant QR codes using participating Bhutanese banking apps, expanding two-way cross-border digital payments after the second phase launch in Thimphu with PM Dasho Tshering Tobgay and India’s EAM Dr S. Jaishankar. India–Bhutan Connectivity & Energy: Jaishankar’s recent Bhutan visit concluded with a new INR 4,000 crore concessional line of credit for energy projects, progress on cross-border connectivity, support for Gelephu Mindfulness City, and completion of two-way digital payment connectivity. Gelephu Hospital Upgrade: Gelephu General Hospital is set for a major overhaul as the Gelephu Mindfulness City Authority seeks a multidisciplinary consultant for gap assessment and tender-ready designs covering major systems and healthcare engineering. Earthshot Prize Spotlight: Bhutan has been shortlisted as a 2026 Earthshot Prize finalist (Protect & Restore Nature), with winners to be announced in Mumbai on Nov 17. Health in Thimphu: More than 70 international experts are in Thimphu for a conference on childhood eye diseases and strabismus, with Bhutan hosting for the first time and sharing local clinical experience. Regional Context: A 4.9 quake struck Bhutan’s northeast, with tremors felt across Assam; no damage reported so far.

India–Bhutan Partnership: India’s EAM S. Jaishankar wrapped a three-day visit to Bhutan with a fresh push on energy, connectivity, education and digital payments, including an INR 4,000 crore concessional line of credit for energy projects and progress on Punatsangchhu hydropower. Health in Thimphu: More than 70 international eye experts met in Thimphu to strengthen childhood eye care and strabismus treatment, with Bhutan sharing local data and practices. Agriculture Support: IFAD-backed IMPACT (Inclusive Markets, Production, Agriculture Commercialisation and Transformation) was launched in Bumthang to help about 15,500 smallholders—prioritising women and youth—move from producing more to earning more through stronger groups, buyer links and loan-ready plans. Climate & Disaster Readiness: The Himalay Unnati Mission coalition launched a scientific push on cloudbursts, landslides, floods and glacier hazards, calling for a dedicated Himalayan Authority to coordinate early warning and preparedness across borders. Earthshot Spotlight: Mahindra Last Mile Mobility was named a 2026 Earthshot Prize finalist for expanding electric last-mile transport in India, aligning with cleaner air goals. Regional Alert: Tremors from a 4.9 quake near Bhutan were felt across India’s northeast, with authorities monitoring for aftershocks.

India–Bhutan Energy Push: External Affairs Minister S. Jaishankar’s visit to Bhutan brought a ₹4,000-crore concessional line of credit for energy projects, plus new health, bridge, and connectivity moves—alongside progress on Punatsangchhu hydropower and support for Gelephu Mindfulness City. Health & Capacity Building: Thimphu hosted the 5th South Asian Academy of Ophthalmology conference, bringing 70+ international experts to strengthen childhood eye care and strabismus treatment, with Bhutan reporting 1,218 cases in 2025. Agriculture Commercialisation: The IMPACT project was launched in Bumthang to help about 15,500 smallholder households earn more through stronger farmer groups, buyer links, and business/loan support across six eastern districts. Climate & Disaster Readiness: The Himalay Unnati Mission coalition of 134 groups launched a scientific study on cloudbursts, landslides, floods, and glacier hazards, calling for a coordinated Himalayan Authority and early-warning systems. Conservation Spotlight: Bhutan’s Earthshot Prize presence continues to grow, with “The Kingdom of Bhutan” highlighted for forest-led water security across the region. Wildlife Alerts: On the India–Bhutan border, a second wild elephant death was reported in three days, with investigations underway. Regional Diplomacy: Bhutan’s Buddhist outreach remains a key foreign-policy theme, highlighted by Sri Lanka PM Harini Amarasuriya’s recent visit and summit engagement in Bhutan.

India–Bhutan Energy Push: External Affairs Minister S. Jaishankar’s visit to Thimphu brought a ₹4,000-crore concessional Line of Credit for Bhutan energy projects, alongside fresh launches and inaugurations in hydropower, healthcare and connectivity, including the 65-bed Gyaltsuen Jetsun Pema Mother and Child Hospital and the Jaganathan Bridge. Connectivity & Gelephu: Talks also highlighted cooperation on trade, digital payments and the Gelephu Mindfulness City, with India reaffirming support under Bhutan’s 13th Five Year Plan. Climate & Wildlife Pressure: On the Bhutan border, a second wild elephant death was reported in three days in Tamulpur, following an earlier calf death—raising concerns for monitoring and response along shared habitats. Disaster Readiness Across the Himalaya: The Himalay Unnati Mission coalition (134 partners) launched a scientific push for a Himalayan Authority and early-warning coordination as cloudbursts, landslides and glacier hazards intensify. Local Environment Watch: A Bhutan Butterfly Meet in Trashi Yangtse documented 103 species, underscoring how biodiversity surveys can support conservation as ecosystems shift. Regional Policy Signals: Bhutan’s pasture and early-warning themes also surfaced in broader regional discussions, pointing to growing focus on resilience planning.

India–Bhutan Partnership: External Affairs Minister S Jaishankar’s visit to Thimphu and Bumthang pushed fresh momentum on energy, trade, connectivity and culture, including a Rs 4,000-crore concessional credit line for energy projects, new cross-border infrastructure, and the launch of phase-II of international UPI for Bhutanese citizens visiting India; he also inaugurated a 65-bed mother-and-child hospital in Mongar, a bridge in Samdrup Jongkhar, and handed over 43 Jersey cows for Bhutan’s dairy push. Disaster Risk & Early Warning: The Himalay Unnati Mission (134 partners) unveiled a regional scientific study on cloudbursts, landslides, floods and glacier hazards, calling for a dedicated Himalayan Authority to coordinate hazard maps, monitoring and early-warning across India, Nepal and Bhutan. Climate & Nature Spotlight: Prince William’s Earthshot Prize named Bhutan’s “The Kingdom of Bhutan” among 2026 finalists, highlighting how Bhutan’s forests support water security across the region. Wildlife at the Border: Along the India–Bhutan border in Tamulpur, a second wild elephant death was reported in three days, with investigations underway after a carcass was recovered. Local Flood Impacts: Floodwater inundated homes and farmland in Chirang’s Sidli circle after the Champabati River breached embankments, disrupting movement in affected villages. Health Infrastructure in Gelephu: Gelephu Mindfulness City plans a major upgrade for the Central Regional Referral Hospital, inviting firms to assess damage and design renovations.

India–Bhutan Diplomacy: External Affairs Minister S Jaishankar wrapped up a two-day visit with Bhutan’s DN Dhungyel and Lekey Dorji, reviewing development partnership, energy, trade, connectivity and culture, and inaugurating projects including a 65-bed mother-and-child hospital in Mongar and the Jaganathan Bridge in Samdrup Jongkhar, plus laying groundwork for hydropower in Lunana. Energy Transition: AFP reports solar is rising in hydropower-dependent Bhutan as winter river flows tighten and climate risks grow, with new farms like Dechencholing and Sephu adding capacity. Healthcare Upgrade in Gelephu: Gelephu Mindfulness City plans a major renovation of the Central Regional Referral Hospital after assessments flagged leaks, ageing systems and safety concerns. Digital Payments Link: India launched phase-II of UPI @UPI for Bhutanese citizens visiting India, alongside broader cooperation talks. Wildlife & Border Safety: On the India–Bhutan border in Tamulpur, a second wild elephant calf died in three days; officials are investigating after a post-mortem. Art & Culture: Bhutanese artist Pem Lham won the 2026 Rubin Museum Himalayan Art Prize for reimagining Himalayan art through contemporary themes.

India-Bhutan ties: External Affairs Minister S. Jaishankar wrapped up talks in Bhutan with Foreign Minister DN Dhungyel, reviewing cooperation across development partnership, energy, trade, connectivity, culture and people-to-people links, and inaugurating projects including a 65-bed mother-and-child hospital in Mongar and the Jaganathan Bridge in Samdrup Jongkhar, while also laying groundwork for a 500 kW Lunana hydropower project and handing over 43 Jersey cows to boost Bhutan’s dairy sector. Energy diversification: With winter river flows tightening and climate pressures rising, Bhutan is accelerating solar alongside hydropower, including new solar farms such as Dechencholing, as demand grows and imports fill seasonal gaps. Healthcare upgrade: Gelephu’s Central Regional Referral Hospital is set for a major renovation as GMC expands, after assessments flagged leaks, ageing systems and safety concerns. Livestock and agriculture: The India-assisted Jersey cow handover and cattle breeding support underline a push to strengthen local milk productivity and farmer livelihoods. Art and culture: Bhutanese artist Pem Lham won the 2026 Rubin Museum Himalayan Art Prize for work reimagining Himalayan folklore through contemporary themes of gender, identity and memory. Regional security: South Asian countries, including Bhutan, pledged stronger coordinated action against illegal wildlife trade through intelligence sharing, financial investigations, anti-money laundering steps and cross-border prosecutions.

India-Bhutan Diplomacy: External Affairs Minister S Jaishankar arrived in Thimphu for a two-day visit, welcomed by Bhutan’s Finance Minister, and held talks with Foreign Minister Lyonpo D.N. Dhungyel on development partnership, energy, trade, connectivity and people-to-people ties. Project Push: During the visit, India-backed milestones were unveiled across Bhutan, including a 65-bed mother-and-child hospital in Mongar, the Jaganathan Bridge in Samdrup Jongkhar, and the foundation stone for a 500 kW Lunana hydropower project, alongside livestock support through the handover of 43 Jersey cows. Energy Transition: With winter river shortfalls and climate pressure, hydropower-rich Bhutan is ramping up solar—projects like Dechencholing and Sephu are expanding as demand grows and imports from India remain a stopgap. EV Growth Planning: Bhutan’s Surface Transport Department released an EV charging masterplan, proposing phased expansion based on demand and coverage, as public charging stations rise to 41 nationwide. Art & Culture: Bhutanese artist Pem Lham won the 2026 Rubin Museum Himalayan Art Prize, spotlighting contemporary work rooted in Himalayan folklore and themes of gender and identity.

India-Bhutan ties: External Affairs Minister S. Jaishankar met Bhutan’s FM Lyonpo D.N. Dhungyel in Bumthang and, together, unveiled and inaugurated major projects— including a 65-bed mother-and-child hospital in Mongar, the Jaganathan Bridge in Samdrup Jongkhar, and laid the foundation for a 500 kW Lunana hydropower project—while also discussing development partnership, energy, trade, connectivity, culture, and people-to-people links. Energy transition: A new push for solar is taking shape in hydropower-rich Bhutan as winter river flows tighten; projects like Dechencholing and Sephu signal diversification beyond hydropower exports. Disaster readiness: Bhutan is strengthening end-to-end early warning for GLOF and other hazards, with NCHM stressing that alerts must reach sectors and communities, not just sit in data systems. EV rollout: Bhutan’s Department of Surface Transport released an EV charging masterplan, using billing and location analysis to prioritize where new public chargers should go as demand rises. Digital payments watch: India’s UPI is set to add a 0.4% MDR on person-to-merchant payments above Rs 2,000 from Oct 15, with merchants paying and small everyday payments staying free—an issue that could ripple across the region’s payment ecosystems. Governance & youth voting: On National Voters’ Day in Paro, Bhutan’s Election Commission launched initiatives to lift participation ahead of the next phase of local government elections after low turnout, especially among young voters.

Energy Transition: Bhutan is turning more to solar as winter demand strains hydropower and shrinking river flows push the country to import electricity from India; projects like Norion’s Dechencholing (4.45MW) and Druk Green Power’s push toward about 5,000MW signal a diversification drive. Digital Payments: India’s RBI has backed a 0.4% Merchant Discount Rate on UPI payments to merchants above Rs 2,000 from Oct 15, with person-to-person and small payments staying free—an effort aimed at funding UPI’s infrastructure, cybersecurity and fraud prevention. Public Health: Bhutan and Chile have shown dog-transmitted rabies can be eliminated, but experts warn India’s 2030 target faces hurdles from uneven vaccination, population management and surveillance. Innovation & Conservation: Pelsung and UNDP launched a Human-Tiger Coexistence Innovation Challenge to help young innovators design enterprise solutions for human-wildlife conflict. Mobility & Livelihoods: Bhutan’s EV charging network is set to expand via a new masterplan, while rural entrepreneurship stories—from a Merak bakery to senior travel initiatives—highlight local jobs and services.

UPI Fees in Focus: India’s RBI has backed a 0.4% Merchant Discount Rate on UPI payments to merchants above Rs 2,000 from Oct 15, while keeping person-to-person UPI free and capping MDR at Rs 300 for transactions of Rs 75,000 and above—sparking fresh political heat as critics warn it could push costs onto shoppers. Bhutan Climate & Disaster Lens: A new look at Himalayan GLOF risk highlights how glacier hazards keep recurring across the region, underscoring why Bhutan’s own monitoring and early-warning push matters as Nepal-Tibet flood impacts ripple through shared river systems. Refugee Rights Under Pressure: Bhutanese refugees in exile are reportedly facing detention and deportation, with advocates like Asian Refugees United organizing power against forced returns. Thimphu Urban Delivery: The Thimphu Structure Plan is moving into phased implementation, with drainage, public spaces, and transport corridor works like Changlam’s public transport key corridor starting this year. Local Governance & Women’s Entry: A Bhutan Centre for Media and Democracy needs assessment finds barriers for women in elections start well before polling day—especially campaign costs, mobility, and childcare. Banking Watch: Bhutan National Bank’s profit fell about 80% in H1 2026 as impairment charges rose sharply, even as its loan book grew.

UPI Fees Debate: India’s government has ordered banks and payment providers to keep UPI transactions up to ₹2,000 free, while RuPay debit card payments also remain charge-free—yet it hasn’t clarified what happens above ₹2,000, leaving merchants and future MDR rules in focus. Thimphu Planning: The Thimphu Structure Plan is moving into phased implementation, with drainage clean-ups, parks, and Local Area Plans already underway, alongside mobility upgrades like the Changlam Public Transport Key Corridor. Banking: Bhutan National Bank’s profit fell about 80% in the first half of 2026 as impairment charges on loans and other losses jumped, even as its loan book and deposits grew. Water Stress in Paro: MoENR says 16 Paro surface-water sources have dried up and 117 are drying, prompting recharge-area protection and nature-based spring revival plans. Gelephu–Tareythang Road: A revised greenfield alignment has cut the route by 1.5km, bringing the overall length to 12.6km, with construction targeted to start in June 2027. Climate Risk & Early Warning: PM Tshering Tobgay says Bhutan is strengthening disaster preparedness for GLOF hazards, with early warning systems already installed in three river basins. Health Milestone: Thimphu’s dedicated Breast Clinic marked its first anniversary with 1,600+ visits and 45+ breast cancer surgeries, while radiotherapy access remains a gap. Culture Spotlight: Bhutanese artist Pem Lham won the 2026 Rubin Museum Himalayan Art Prize, the first Bhutanese recipient of the award. Regional Cooperation (BIMSTEC): Bangladesh’s Humaiun Kobir urged BIMSTEC members to look beyond bilateral tensions, while Sri Lanka and BIMSTEC moved the Technology Transfer Facility closer to operationalisation.

GLOF and glacier risk: Bhutan is strengthening disaster preparedness and early warning systems as glacier retreat accelerates, with the PM citing Nepal’s disaster and noting 17 potentially dangerous glacial lakes plus early warning already installed in three river basins. Water security: MoENR says Paro’s springs are under pressure—16 surface-water sources have dried up and 117 are drying—prompting recharge-area protection and nature-based spring revival. Roads and connectivity: The Gelephu–Tareythang road is moving toward construction after a revised greenfield alignment cut the route by 1.5km to 12.6km, with detailed design and contractor prequalification progressing for a June 2027 start. Hydropower outlook: Bhutan’s hydropower generation rose 9.3% in the first seven months of 2026, while MoENR also projects electricity demand could nearly double as EVs, households and industry grow. Jobs and business climate: MoICE says Bhutan will revive border towns through infrastructure, dry ports and targeted town-by-town interventions—“not price wars”—and links a 65,000-job target to scaling 10 priority sectors. Culture: Contemporary artist Pem Lham won the 2026 Rubin Museum Himalayan Art Prize, the first Bhutanese recipient, putting Bhutanese art in the global spotlight. Regional ties: Manipur journalists are set to collaborate with Bhutanese media groups, focusing on shared Eastern Himalayan climate and conservation reporting.

Traditional Craft Revival: In Gangzur Gewog, Lhuentse, demand has revived traditional pottery, with 10 potters (mostly women) producing over 600 pots a month—though manual, labour-heavy production still limits output. Climate & Disaster Readiness: Bhutan’s glacier-risk monitoring continues around the clock, while the Green Climate Fund approved USD 22m to strengthen flood early-warning systems across major river basins, aiming to improve evacuation time for GLOF threats. Tourism Policy Watch: Bhutan’s 50% concession on the USD 100 Sustainable Development Fee is headed to Cabinet next week, with the government weighing visitor growth against protecting the fee’s purpose. Infrastructure & Land Impacts: The Gelephu–Tareythang Highway is moving closer to construction, with a revised 12.6 km alignment, more bridges, and land acquisition affecting 223 plots and 69 structures. Rural Finance: RENEW Microfinance is expanding rural livelihoods in Tsirang, reaching thousands of borrowers with loans supporting farming tools, small businesses, and women-led household income. Food Systems Diplomacy: Sri Lanka’s PM Harini Amarasuriya joined Bhutan’s inaugural Global Conscious Food Systems Summit, linking sustainability and mindful approaches to food policy. Local Economy & Business Climate: Government says border towns can’t rely on price-cutting to beat India, and urges private-sector responsibility alongside regulatory simplification.