Key Points:
Plans have been finalised to construct to rail links – the Kokrajhar-Gelephu line and the Banarhat-Samtse line – connecting India and Bhutan.
The project details 89 km of track to be constructed at a cost ₹4,033 crore, to be borne by the Indian government.
This will be Bhutan’s first railway system and is expected to boost trade, development, and tourism in the country.
India and Bhutan are set to be connected by train for the first time, Union Minister of Railways Ashwini Vaishnaw and Foreign Secretary of India Vikrant Misri announced on Monday, 29 September 2025. Bhutan is currently the only mainland Asian country without a rail system.
The project involves the construction of two rail links between the countries – the Kokrajhar-Gelephu line, running from Assam, and the Banarhat-Samtse line, running from West Bengal – at a cost of ₹4,033 crore, to be borne by the Indian government. This is part of the ₹10,000 crore committed by the Indian government for Bhutan’s development between 2024-29. Plans detail a combined 89 km of track to be constructed, spanning six new stations, 29 major bridges, 65 minor bridges, 39 underpasses, two viaducts, and one overpass.
“The Government of India has been Bhutan's largest provider of developmental assistance and has played a vital role in its modernisation, especially in the areas of infrastructure and the overall economic development of the country,” Misri said at the announcement.
In addition to improving passenger travel, the links are expected to cut transport costs for Bhutan’s trade. At present, all of the country’s imports and exports move by road, leading to delays and higher expenses. Direct access to India’s Northeast Frontier Railway network will allow Bhutanese exporters to move goods more efficiently to Indian ports and markets, while also facilitating inflows of essential commodities.
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“India is the largest trading partner of Bhutan and most of the EXIM trade of Bhutan is done through Indian ports. Therefore, it becomes very important to have a good seamless rail connectivity for the Bhutanese economy to grow and for the people to have better access to the global network. That's why this entire project has been undertaken,” Vaishnaw stated.
“The India-Bhutan Railway Project aims to connect two important cities in Bhutan. As shared by the Foreign Secretary, one is Gelephu, being developed as a mindfulness city, and the other is Samtse, an industrial city,” Vaishnaw continued, “The Kokrajar–Gelephu line connects to Bongaigaon, a major industrial hub in India. Kokrajar serves as the regional station, linking the project to the entire Indian railway network. In essence, by constructing approximately 70 km of new track, Bhutan gains access to 150,000 km of India’s railway network. This demonstrates the significant advantage of the network effect.”
"As you are all aware, India and Bhutan share a relationship of exceptional trust, mutual respect and understanding. This is a relationship that is rooted in cultural and civilizational ties, extensive people-to-people relations, and our shared developmental and security interests. These ties are reflected in very close contact at the highest levels,” Misri added.
The move follows PM Modi’s visit to Bhutan in March 2025, where plans for the rail links were cemented with a Memorandum of Understanding. A formal agreement was signed on 29 September 2025, the same day as the announcement. [Rh/DS]
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