India’s rise to become the world’s fourth-largest economy has captured global headlines, and for Bhutan, it is more than just news. With over 80 per cent of the country’s trade linked to India and deep cooperation across sectors, the finance ministry says this milestone could open up new opportunities for Bhutan’s economic growth.
According to the Ministry of Finance, India becoming the world’s fourth-largest economy could boost trade, investment, and regional cooperation between the two countries.
According to the International Monetary Fund or IMF, India’s nominal GDP is projected to reach over four trillion US Dollars by the end of this year. IMF is a global organisation with 191 member countries focused on fostering international monetary cooperation and financial stability.
“On 26th May 2014, I took the oath as the Prime Minister for the first time. At that time, India’s economy was in the 11th position. Today, India has become the world’s fourth-largest economy. It is a matter of pride for all of us that we have now surpassed Japan. I still remember the excitement in the younger generation when we overtook the United Kingdom,” said Prime Minister Narendra Modi.
According to a written response from the Ministry of Finance, a stronger Indian economy means more purchasing power among Indian consumers and industries. This could lead to increased demand for Bhutan’s major exports, such as hydropower, agricultural produce, and tourism services.
The ministry says hydropower is expected to become even more significant. With India’s growing energy needs, projects like Sunkosh and Kholongchu could gain momentum.
Meanwhile, Bhutan’s organic products such as ginger, turmeric, apples, and herbal goods are also becoming more popular among Indian consumers who are willing to pay a premium.
Further, stronger Indian industries could also benefit consumers. As India becomes more efficient, Bhutan could see lower import costs on essentials like fuel, food, and medicines.
The finance ministry also highlighted opportunities in digital collaboration. As Bhutan builds its Digital Drukyul initiative, India’s growing digital economy could offer shared platforms in areas such as online education, digital payments, and telemedicine.
India’s rise also strengthens regional cooperation through forums such as BBIN and BIMSTEC, of which Bhutan is a member.
India’s economic rise is reshaping the region, and for Bhutan, it offers a timely opportunity to reposition its economy, strengthen partnerships, and prepare for the future.
Kinley Bidha
Edited by Sonam Pem
