• India has announced a significant cultural and diplomatic gesture by granting land in Varanasi for the construction of a Bhutanese monastery and guesthouse . The announcement was made by Prime Minister Narendra Modi during his visit to Bhutan in November 2025 , marking the 70th birth anniversary of King Jigme Khesar Namgyel Wangchuck .
• This initiative reinforces the deep-rooted Buddhist heritage, cultural ties, and India’s “Neighbourhood First” policy .

A Spiritual Hub on the Banks of the Ganga

The new Bhutanese monastery will be located near the Ganga River in Varanasi , India’s spiritual capital.
It will serve as:

• A centre for Buddhist learning and meditation

• A space for Bhutanese monks and pilgrims

• A platform for cultural and spiritual exchange

Bhutanese PM Tshering Tobgay described the project as a “bridge of faith” , highlighting the powerful spiritual link between India and Bhutan.

Strengthening Diplomatic and Cultural Bonds

The monastery project reflects:

• India’s commitment to supporting Bhutan’s cultural identity

• Deepening people-to-people contact

• Enhanced religious tourism

• Faith-based diplomacy rooted in shared Buddhist traditions

This adds a cultural and spiritual dimension to Indo-Bhutan relations, traditionally dominated by economic and strategic cooperation.

Key Bilateral Developments During the Visit

PM Modi’s visit to Bhutan also witnessed several major announcements and agreements:

1. Rs 4,000 Crore Line of Credit

India extended a ?4,000-crore line of credit to Bhutan for development and infrastructure projects.

2. Punatsangchhu-II Hydropower Project Inaugurated

The 1,020 MW Punatsangchhu-II Hydropower Project was inaugurated, strengthening Bhutan’s hydropower-driven economy and India’s clean energy partnership.

3. Resumption of Punatsangchhu-I Project

Work on the long-stalled Punatsangchhu-I project has been agreed to resume.

4. Three New Agreements Signed

These were signed in sectors critical to long-term cooperation:

• Renewable energy collaboration

• Mental-health research partnership

• Medical capacity-building initiatives

Symbol of Shared Buddhist Heritage

The monastery’s announcement aligns with Bhutan’s Global Peace Prayer Festival , supported by India.
Adding to the spiritual significance, India sent a sacred relic of