Bhutan’s Rising Debt Crisis Tied to India-Funded Hydropower Projects

Bhutan’s Rising Debt Crisis Tied to India-Funded Hydropower Projects

At the 70th birth anniversary of Bhutan’s Fourth King Jigme Singye Wangchuck, Indian Prime Minister Narendra Modi announced a Ngultrum 40-billion (roughly $450 million) line of credit for infrastructure and energy development. While the move signalled strong bilateral ties, an uncomfortable truth lies behind the public warmth. Bhutan’s dependence on Indian-funded hydropower has locked it into an escalating debt trap.

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