AGP Executive Report

Bhutan Tourism & Trade: Bhutan’s first Bhutan International Travel Mart (BITM) 2026 opened with over 200 international buyers and 50 Bhutan exhibitors, aiming to turn “high-value, low-volume” tourism into real business partnerships with tour operators, airlines, and hospitality players. Energy & Household Costs: Bhutan’s LPG supply remains fully import-dependent from India, and recent Indian price revisions have pushed Bhutan’s subsidized 14.2kg cylinder up by Nu 36, underlining how global energy disruptions quickly hit household budgets. Construction & Skills: The Parliament’s Public Accounts Committee linked recurring audit issues in government construction to a shortage of experienced senior engineers and architects, with most technical staff concentrated in lower experience grades. Clean Cooking Transition: A carbon-financed private initiative is set to use Bhutan’s hydropower electricity to expand cleaner cooking options, targeting ongoing reliance on firewood and LPG’s import cost burden. Creative Industry Upskilling: Thimphu is hosting the first Essentials Training Programme for Live Sound, bringing together technicians to strengthen live production skills for Bhutan’s growing events sector. Climate Risk Watch: ICIMOD warns that even with below-normal monsoon rainfall forecasts for Bhutan and the HKH region, short bursts of intense rain and rising temperatures can still drive flash floods and landslides.

Tourism Deal-Making: Bhutan’s first Bhutan International Travel Mart (BITM) 2026 in Thimphu drew 200+ international buyers from 15 markets and 50+ Bhutan exhibitors, aiming to turn “high-value, low-volume” tourism into real partnerships with tour operators, airlines and hotels. Energy Costs: Bhutan’s LPG bill is rising as the country imports 100% of LPG from India; after India’s June revisions, the subsidized 14.2-kg cylinder increased by Nu 36, with procurement costs climbing sharply from April to June. Solar for Public Services: DGPC installed solar panels in 187 public facilities across Thimphu, Basochhu and Chhukha, targeting cleaner power and reduced reliance on hydropower, with the four-phase plan running to 2028. Climate & Risk Management: ICIMOD warns that even with below-normal monsoon rainfall in the Hindu Kush Himalaya, short bursts of intense rain plus heat and water stress can still trigger floods and landslides—so Bhutan needs to track short-term advisories closely. Industry Talent & Power Projects: SJVN appointed Rajesh Kumar Chandel as Director (Projects), with long experience across hydroelectric planning and execution including work in Nepal and Bhutan. Agrifood Exports Link: Bhutan-linked regional trade chatter continues as international buyers engage across South Asia, while Bhutan’s tourism and energy push run alongside broader market access efforts.

Monsoon Risk for HKH: ICIMOD warns that even with below-normal rainfall forecast for Bhutan, India, Nepal and Pakistan, short bursts of intense rain, heat and water stress can still trigger flash floods and landslides—so communities should track short-term advisories closely. Bhutan Tourism Trade Push: Bhutan International Travel Mart 2026 in Thimphu drew 200+ international buyers from 15 markets and 50+ Bhutan exhibitors, aiming to build new partnerships and high-value tourism products. Solar for Public Services: DGPC says solar panels are now installed in 187 public facilities across Thimphu and parts of Chhukha/Basochhu, targeting cleaner power and reduced reliance on hydropower as a multi-phase ADB-backed programme scales to 2028. Agrifood Export Linkages: Assam flagged off 500 kg GI-tagged Tezpur “Piyaji” litchis to Singapore via a Druk Air route from Bhutan via Guwahati, following earlier exports to Dubai—showing regional market connectivity for premium produce. Power Sector Leadership: SJVN appointed Rajesh Kumar Chandel as Director (Projects), with decades of experience across hydroelectric project planning and execution in India, Nepal and Bhutan.

Bhutan Tourism & Trade: Bhutan International Travel Mart in Thimphu drew 200+ international buyers from 15 countries, supported by the Economic Stimulus Programme, as tour operators, hoteliers and airlines look to build new partnerships and sell higher-value itineraries. Renewable Power Push: DGPC installed solar panels in 187 public facilities across Thimphu, Basochhu and Chhukha, targeting cleaner power generation and reduced reliance on hydropower, with a multi-phase rollout planned to scale nationwide by 2028. Climate & Risk Management: ICIMOD’s HKH Monsoon Outlook 2026 warns that even with below-normal rainfall in Bhutan and the region, disaster risks stay high due to short bursts of intense rain, heat stress and water stress—raising flash flood and landslide concerns. Cross-border Payments: India and Nepal launched a UPI-based cross-border remittance system, expected to speed up instant transfers and cut currency and cash handling frictions for travelers and merchants, with UPI already accepted in Bhutan among other countries. Regional Industry Linkages: The 10th China-South Asia Expo opened in Kunming with a focus on trade and industrial cooperation, featuring manufacturing, green energy and matchmaking—showcasing products including artworks from Bhutan. Agrifood Exports: Assam CM Himanta Biswa Sarma flagged off 500 kg GI-tagged Tezpur litchis to Singapore, with the shipment routed via Bhutan through Guwahati—highlighting how regional logistics can move premium produce to global markets.

Climate & Risk: ICIMOD says HKH’s 2026 monsoon may be below normal for Bhutan, but disaster risk stays high as short bursts of intense rain, heat and water stress can still trigger flash floods and landslides. Tourism Trade: Bhutan International Travel Mart in Thimphu drew 200+ international buyers from 15 countries, aiming to turn tourism into a bigger business engine. Energy & Public Infrastructure: DGPC installed solar panels at 187 public facilities across Thimphu, Chhukha and Basochhu, targeting cleaner power and reduced reliance on hydropower. Renewables Policy: Bhutan’s Renewable Energy Tax Exemption bill advanced in the National Assembly, pushing investment momentum in the energy sector. Hydropower Procurement: UPERC approved long-term power procurement of 511 MW from a Bhutan hydropower project, reinforcing cross-border electricity demand. Industry Leadership: SJVN appointed Rajesh Kumar Chandel as Director (Projects), with deep experience across hydroelectric planning and execution in India, Nepal and Bhutan. Regional Connectivity Finance: ADB and World Bank-backed business opportunities in South Asia were highlighted in Bangladesh, with a push for more private-sector participation in infrastructure and logistics.

Tourism & Trade: Bhutan International Travel Mart 2026 in Thimphu pulled in 200+ international buyers from 15 countries, giving local tour operators, hotels and airlines a direct channel to pitch new products and partnerships. Energy & Infrastructure: Druk Green Power Corporation (DGPC) has installed solar panels in 187 public facilities across Thimphu, Chhukha and Basochhu, targeting cleaner power and reduced hydropower reliance, with more phases planned to scale nationwide by 2028. Finance & Lending: Bhutan’s government says it’s working with the Royal Monetary Authority and banks to understand why lending rates stay high even after the Minimum Lending Rate was cut, with MPs flagging high spreads and farmer-heavy non-performing loans. Climate Risk for Industry: ICIMOD warns that even with below-normal monsoon rainfall across the HKH region (including Bhutan), short bursts of intense rain plus heat can still drive flash floods, landslides and water stress—an operational risk for agriculture, construction and supply chains. Regional Connectivity: India’s UPI-NPI cross-border remittance link is set to speed up instant digital transfers for travelers and merchants across Bhutan and other partner markets. Policy & Diplomacy: India appointed IFS officer Rudra Gaurav Shresth as its next Ambassador to Türkiye, with earlier postings including Bhutan.

Cross-border Payments: India and Nepal launched a UPI-NPI linkage, enabling instant traveler transfers and helping Nepal’s merchants tap Indian digital users without cash or currency exchange hassles. Tourism Trade: Bhutan International Travel Mart 2026 in Thimphu drew 200+ international buyers from 15 countries, supported by the Economic Stimulus Programme, to build partnerships with Bhutanese tour operators, hotels and airlines. Energy Transition: DGPC installed solar panels in 187 public facilities across Thimphu, Chhukha and Basochhu, targeting cleaner power and reduced reliance on hydropower, with a four-phase plan running to 2028. Climate & Risk: ICIMOD’s HKH Monsoon Outlook 2026 flags below-average monsoon rainfall for Bhutan and the region, but warns disaster risk stays high due to short, intense downpours. Finance Costs: Bhutan’s government is exploring ways to reduce lending rates as banks still charge around 11% despite a lower Minimum Lending Rate, with MPs citing high spreads and farmer-heavy non-performing loans. Tourism Spending Watch: Bhutan’s National Assembly questioned slow tourism fund utilisation under the 13th Five-Year Plan, citing infrastructure gaps like toilets and parking. Engineering & Industry Links: Bhutan links digital ID to land ownership verification, supporting smoother property checks for business and development.

Climate & Risk: ICIMOD’s HKH Monsoon Outlook 2026 flags below-average monsoon rain across Nepal, India, Bhutan and Pakistan, but warns disaster risk stays high due to short, intense downpours that can trigger flash floods and landslides. Bhutan Land Tech: Bhutan’s National Land Commission Secretariat has launched a digital consent mechanism tied to the national digital ID to streamline land ownership verification, cut fraud in property transfers, and pilot DrukRef23 mapping for better surveying accuracy. Tourism Spend Watch: Bhutan’s National Assembly questions slow tourism infrastructure spending under the 13th Five-Year Plan, citing low utilisation of allocated funds and persistent gaps like toilets and parking. Transport Policy: Bhutan’s MoIT is reviewing taxi licensing after a moratorium, amid concerns of oversupply in Thimphu and rising fuel costs squeezing operator earnings while worsening congestion. Agrifood Self-Reliance: Bhutan is scaling locally produced biofertilizers and biopesticides to reduce imports of synthetic farm chemicals and strengthen food security under the Agrifood Sector Strategy 2034. Finance & Credit: Bhutan’s government is exploring ways to reduce lending rates as banks still charge around 11% despite a lower MLR, with MPs pointing to high non-performing loans and farmer exposure. Energy/Industry Link: ADB hosted business opportunities seminars in Dhaka highlighting procurement and private-sector participation in ADB- and World Bank-financed projects. Border Trade Systems: India inaugurated the Land Port Management System (LPMS) “Vinimay” to digitise cargo and passenger workflows across land ports, aiming to speed trade and improve border security.

Bhutan Land Administration Upgrade: Bhutan’s National Land Commission Secretariat has launched a digital consent mechanism tied to the national digital ID to streamline land ownership verification, cut fraud and forged transfers, and pilot the system for three months before wider rollout, alongside the DrukRef23 mapping platform. Bhutan Agrifood Push: Bhutan is scaling up locally produced biofertilizers and biopesticides to reduce reliance on imported synthetic inputs, aiming to strengthen food security and protect the environment under the Bhutan Agrifood Sector Strategy 2034. Engineering for Digital Transformation: IEEE is partnering with Bhutan to host a two-day Engineering Education, Research and Innovation Summit in Paro, focusing on modernising engineering curricula and research capacity for Bhutan’s digital and sustainable development goals. Urban Transport Policy: Bhutan’s Ministry of Infrastructure and Transport is reviewing taxi licensing in Thimphu after a moratorium on new licences, citing oversupply concerns, off-peak earnings pressure, and traffic congestion. Regional Trade & Border Tech (India): India’s Land Port Management System (LPMS) “VINIMAY” was inaugurated to digitise cargo and passenger processing and improve border security—relevant for Bhutan-linked land trade corridors. Tourism Funding Concern: Bhutan’s tourism spending is under scrutiny as Parliament questions slow utilisation of allocated funds, with infrastructure gaps like toilets and parking repeatedly raised. GCC Evacuation Readiness: Bhutan’s embassy in Kuwait is designated as a regional operational hub for GCC evacuation planning, with 7,786 Bhutanese nationals monitored under a contingency plan.

Bhutan Land & Digital Services: Bhutan’s National Land Commission Secretariat has launched a digital consent mechanism tied to the national digital ID to streamline land ownership verification and cut fraud in property transactions, with a pilot planned for three months and a new DrukRef23 mapping platform. Agrifood & Inputs Security: Bhutan is pushing agricultural self-reliance by scaling up locally produced biofertilizers and biopesticides under the Agrifood Sector Strategy 2034, aiming to reduce imports worth over Nu 100 million annually. Transport Regulation: Bhutan’s MoIT is reviewing taxi licensing in Thimphu after a moratorium on new licences, citing oversupply concerns, off-peak earnings pressure, and congestion. Engineering & Skills: IEEE is partnering with Bhutan to host an Engineering Education, Research and Innovation Summit in Paro, linking engineering curricula and research to digital transformation and sustainable development. Disaster Readiness: Experts warn that even with a below-normal monsoon forecast, Bhutan and the region face high flash-flood and landslide risk from short intense rainfall bursts and rising temperatures. Regional Trade Infrastructure: India’s Land Port Management System (LPMS) “Vinimay” is being rolled out to digitise land border workflows—relevant for Bhutan’s cross-border logistics and trade efficiency. Investment Push: Bhutan is positioning agrifood as a top investment destination, targeting a doubling of sector value by 2029 through reforms and expanded market access.

Bhutan Agrifood Push: Bhutan is positioning agrifood as a top investment destination, aiming to double the sector’s value by 2029 through reforms and expanded market access, with cardamom alone earning about Nu 2bn in 2025. Bioinputs for Self-Reliance: To cut import dependence amid Middle East-linked supply and oil shocks, Bhutan is scaling up locally produced biofertilizers and biopesticides under the Agrifood Sector Strategy 2034. GCC Evacuation Readiness: Bhutan’s embassy in Kuwait is set as the GCC operational hub for evacuations, with a contingency plan covering 7,786 Bhutanese nationals. Engineering Capacity Boost: IEEE is partnering with Bhutan to host an Engineering Education, Research and Innovation Summit in Paro, linking curricula and research to digital transformation and sustainable development. Disaster & Infrastructure: A 5.5 quake near Punakha damaged 404 households and disrupted services in parts of Wangdue, Punakha and Mongar; meanwhile, road widening is underway on the Daraychu–Shaychamthang highway upgrade to ease travel toward Gelephu Mindfulness City. Skills & Industry Culture: Bhutan is also backing practical training at the College of Zorig Chusum amid classroom shortages, while community-led Pemaling Wool is turning heritage sheep wool into new products and jobs.

Border Tech & Trade Facilitation: India’s Home Minister Amit Shah will launch the Land Port Management System (LPMS) on June 9, a digital platform to unify land-port operations, enable real-time logistics and regulatory data exchange, and speed cargo and passenger processing. Cross-Border Industry Links: A “Team Europe” EU delegation is in Assam (June 8–9) to deepen value-chain partnerships in renewable energy, semiconductors/electronics, healthcare, tea and agri-food processing, flavours/fragrances, and AYUSH—plus a workshop tied to “Blue Valleys” clusters. Bhutan Earthquake Impact: A 5.8 quake near Punakha damaged 404 households and affected schools, health facilities, monuments and infrastructure, with no fatalities reported. Southern Bhutan Connectivity: Road widening is underway on the Daraychu–Shaychamthang stretch (Tsirang–Sarpang highway upgrade) to ease travel and improve safety for heavy vehicles. Gelephu Growth & Finance: Ceffu received a full financial services license for regulated digital-asset custody, investment dealing and credit arranging in Gelephu Mindfulness City. Skills & Services: MoESD plans expansion of the College of Zorig Chusum amid classroom crunch; MoH also highlighted new Mother and Child Hospitals to boost neonatal care. Heritage to Income: Pemaling Wool Heritage in Samtse is turning sheep wool into carpets and apparel to revive a fading tradition and create local jobs.

Digital Finance in Gelephu: Ceffu received a full financial services license for Gelephu Mindfulness City, enabling regulated custody, investment agency dealing, and credit arrangement for institutional digital-asset services. Education Infrastructure: MoESD says it is expanding College of Zorig Chusum in Trashiyangtse to ease classroom and practical training space shortages, while also addressing questions about the college’s status and student progression. Neonatal Care Push: Bhutan’s Ministry of Health highlights plans to strengthen neonatal services beyond just NICU beds, as two Mother and Child Hospitals in Thimphu and Mongar are expected to be completed within two months. Heritage Wool to Jobs: In Samtse, the Pemaling Wool Heritage initiative is reviving sheep-rearing culture by turning wool into carpets, apparel, and accessories, creating new income for community members. Creative Industry Recognition: Thinley Wangchuk’s grief-inspired feature script has earned international recognition through Bhutan’s 2026 Script Development Grant, signaling growing momentum for Bhutanese filmmaking. Regional Trade & Connectivity Watch: While not Bhutan-specific, India’s Land Port Management System (LPMS) launch and EU “Team Europe” talks in Assam point to faster cross-border logistics and new industrial partnerships that could shape Bhutan’s trade routes.

Hydropower Contract: Hindustan Construction Company (HCC) won an INR 127 crore package for Bhutan’s Wangchhu Hydroelectric Project—diversion tunnels, hydromechanical gates and cofferdams—set for completion in nine months, reinforcing momentum in Bhutan’s expanding large-hydro pipeline. Renewables Policy: Bhutan’s National Assembly advanced the Renewable Energy Tax Exemption Bill 2026 in Third Reading, offering indirect tax relief on inputs for renewable projects (including hydropower, solar, wind and green hydrogen) to cut costs and improve tariff competitiveness. Budget Discipline: Parliament kept the FY 2026–27 fiscal deficit at Nu 25.28 billion (6.54% of GDP) despite calls to reduce it to 4%, with debate centering on expenditure rationalisation and postponement of non-essential spending. Digital Tax Reform: Bhutan’s GST rollout is “on track,” with the finance ministry citing over Nu 3bn collected in the first four months and a wider STCA filing base, as officials push for long-term compliance gains. Zero Waste Push: Government reaffirmed commitment to Zero Waste Bhutan 2030, stressing public awareness, waste segregation, and better management for e-waste and EV batteries. Connectivity for Trade: PM Dasho Tshering Tobgay said India will fully fund the Kokrajhar–Gelephu rail link (Nu 34.5bn), aiming to cut logistics costs and strengthen Gelephu Mindfulness City’s growth. EU Industry Linkages: “Team Europe” is set to visit Assam (June 8–9) to build value chains with sectors that overlap with Bhutan’s interests—green energy, pharma, semiconductors/electronics, tea and agri-food, flavours and fragrances, and AYUSH. Earthquake Watch: A 5.8 quake centered in Bhutan shook parts of Assam and the Northeast; preliminary reports said no damage or casualties. Sovereign Bitcoin Drawdown: Bhutan-linked wallets reportedly transferred 738 BTC (about $44.88m), continuing a structured sovereign drawdown pattern that keeps investors and regulators watching.

Hydropower & Construction: Hindustan Construction Company (HCC) won a ₹127 crore contract from Wangchhu Hydroelectric Power for Wangchhu diversion tunnels, hydromechanical gates and cofferdams, with a nine-month timeline—another sign Bhutan’s 2024–29 hydropower push is pulling in major contractors. Renewables Policy: Bhutan’s National Assembly advanced the Renewable Energy Tax Exemption Bill 2026 in third reading, offering time-bound indirect tax relief on inputs and property transfer tax exemptions to cut project costs and boost energy security. Energy Trade (India–Bhutan): Uttar Pradesh Power Corporation got UPERC approval to source power from Bhutan’s 511-MW Khorluchu Hydro (Tata Power + Druk Green Power JV) at a flat ₹6.75/unit for 30 years, strengthening regional supply during peak months. Regional Connectivity: India will fully fund the Kokrajhar–Gelephu rail link (Nu 34.5B), positioning Gelephu Mindfulness City as a logistics and trade gateway via improved Assam multimodal access. Waste & Green Growth: Government reaffirmed commitment to Zero Waste Bhutan 2030, stressing public participation and better waste systems; meanwhile BTFEC backed red panda tourism and elephant habitat work in Gelephu with new grant agreements. Climate Finance: Bhutan secured continued GEF support via LDCF extensions for two more cycles (GEF-9 to 2030 and GEF-10), targeting adaptation in agriculture, water, early warning and nature-based solutions. Border Tech (India): Amit Shah will launch India’s Land Port Management System on June 9 to digitise land-port logistics and regulatory data—relevant for smoother cross-border trade flows. Bhutan & Digital Assets: On-chain trackers say Bhutan-linked wallets offloaded 738 BTC (about $44.9M) on June 6, continuing a structured sovereign drawdown pattern tied by analysts to funding needs like Gelephu.

Hydropower Contracts: Hindustan Construction Company (HCC) won a ₹127 crore contract from Wangchhu Hydroelectric Power Ltd for diversion tunnels, hydromechanical gates and cofferdams for Bhutan’s Wangchhu project, with a nine-month completion timeline—another sign Bhutan’s 13th Five-Year Plan push (6,000 MW target) is pulling in major infrastructure players. Cross-Border Energy Trade: Uttar Pradesh Power Corporation received UPERC approval to buy power from Bhutan’s 511-MW Khorluchu Hydro Power (Tata Power–Druk Green Power JV) at a flat ₹6.75/unit for 30 years, strengthening regional supply and seasonal peaking support. Renewables Policy: Bhutan’s National Assembly advanced the Renewable Energy Tax Exemption Bill 2026 in Third Reading, offering time-bound indirect tax exemptions on inputs for construction/installation of renewable facilities and related property transfer tax relief to improve project competitiveness. Zero Waste Bhutan 2030: Government reaffirmed its commitment to Zero Waste Bhutan 2030, stressing public awareness, waste segregation, and stronger systems for incinerators/MRFs plus e-waste and EV battery management. Gelephu Skills & Green Jobs: The third Pelsung cohort graduated in Gelephu, with graduates already feeding into initiatives like the Zero Waste GMC effort and a climate startup piloting waste-to-resources work. Climate Finance: Bhutan secured continued GEF LDCF support for two more cycles to fund climate adaptation priorities, including agriculture/food security, water management, early warning and nature-based solutions. BTFEC Conservation Push: In Gelephu, BTFEC signed new grants for red panda tourism and elephant habitat enhancement, including CCTV support for elephant movement monitoring.