 "This handout photograph taken on November 11, 2025 and released by the Indian Press Information Bureau (PIB) shows India's Prime Minister Narendra Modi (L) shaking hands with Bhutan's King Jigme Khesar Namgyel Wangchuck during the Fourth Kings 70th Birth Anniversary celebrations at Changlimethang Celebration Ground in Thimphu.")
On the first day of his Bhutan visit, Prime Minister Narendra Modi announced that India will grant land in Varanasi for the construction of a Bhutanese monastery and guesthouse, a gesture seen as a new chapter in the centuries-old spiritual and cultural connection between the two Himalayan neighbours.
The monastery, to be built near the banks of the Ganga, will be a centre for spiritual learning, cultural exchange, and pilgrimage, offering Bhutanese monks and devotees a sacred space in India’s spiritual capital.
Bhutanese Prime Minister Tshering Tobgay described it as “a bridge of faith that connects the spiritual heart of India with the soul of Bhutan.”
Modi said the initiative reflects the essence of India’s “Neighbourhood First” policy, emphasising shared heritage rooted in Buddhism. The Bhutanese monastery in Varanasi is also expected to boost tourism and people-to-people contact between the two nations.
The announcement came alongside a series of other bilateral measures, including a Rs 4,000-crore line of credit from India to support Bhutan’s development projects and the formal inauguration of the 1,020 MW Punatsangchhu-II Hydropower Project. Both governments also agreed to resume work on the stalled Punatsangchhu-I project.
In addition, India and Bhutan signed three new agreements on renewable energy collaboration, mental-health research, and medical capacity-building, expanding cooperation beyond infrastructure to social development.
Bhutan remains India’s largest aid partner, receiving over Rs 2,150 crore this fiscal year.
Ahead of Prime Minister Modi’s visit, Bhutanese PM Tshering Tobgay said that India is backing the Global Peace Prayer Festival, a royal initiative led by King Jigme Khesar Namgyel Wangchuck. Adding a powerful spiritual touch to the event, India has sent a sacred relic of Lord Buddha to Bhutan—where it will be displayed for public veneration as a symbol of shared faith and cultural harmony.