Prime Minister (PM) Narendra Modi’s latest visit to Bhutan – his fourth in 11 years – took place against the backdrop of the extraordinary Global Peace Prayer Festival, the largest gathering of its kind in the state. The presence of sacred Piprahwa relics from India gave the occasion a deep spiritual resonance. The visit was equally significant: three new memoranda of understanding (MOUs) were signed, a fifth hydropower project was inaugurated, and a A line of credit of Rs 4,000 crore was announced to advance Bhutan’s energy ambitions. The proposed rail links between the two countries signal an integration that aims to take the partnership forward confidently into the future.
But beneath it, lies another emerging story – of a new, ambitious Bhutan led by a dynamic, tech-savvy king who is quietly but steadily transforming the nation while retaining its traditional core.
At the center of this transformation are Bhutan’s youth – young, aspirational and increasingly outward-bound. A World Bank report notes a sharp increase in migration after borders reopen in 2022, with departures through Paro airport increasing from less than 500 per month to more than 5,000 per month by early 2023, skewed heavily towards young, educated Bhutanese, who were primarily heading to Australia. This is a staggering figure for a country of approximately 700,000 people. The sheer scale and speed of this trend has turned youth migration into an existential challenge – impacting not only the economy, but also Bhutan’s cultural continuity, social fabric and future leadership pipeline.
Much of the ongoing change, from building a modern economy to upgrading infrastructure and human capital, is being driven as a headwind to this demographic drift. The message is clear: Let’s give young people a reason to stay. Initiatives like Gelephu Mindfulness City (GMC), education reform and entrepreneurship upgradation are not just development projects, they are national acts of hope and faith in Bhutanese youth. Their goal is to transform the country not only physically, but also emotionally by rekindling the belief that anyone can thrive in Bhutan and not have to leave it behind.
So what are the various initiatives that have shaped today’s Bhutan?
First, there is the GMC project. The brainchild of the King of Bhutan, it is an extraordinary undertaking; Remarkable in both its promise and scale. Promise? A city that aims to reverse Bhutan’s brain-drain by building forward-looking industries – welfare, education, technology, green energy and culture – that create meaningful livelihoods at home. scale? It will be spread over one million acres, covering 11 village blocks and three districts – Gelephu as well as parts of Sarpang and Zemgang.
The development will be phased – a multi-decade project – with the initial stages focusing on core infrastructure and the legal framework for its Special Administrative Region status. Work is already underway on the construction of Gelephu International Airport, which is considered one of the more important airports in the sub-region. The announcement of a rail link to connect Gelephu and Samtse in Bhutan with India’s larger rail network during PM Modi’s visit is also an auspicious sign and may give a boost to trade and tourism, thereby transforming Gelephu and Samtse from a frontier to a centre.
Bhutan’s compulsory national service Gyalsung and its voluntary counterpart Desung are two major youth-focused initiatives that reflect the country’s deep commitment to nation-building.
Announced in 2019, Gyalsung is a one-year mandatory national service for all Bhutanese youth, enabling them to “realize their innate potential” and become productive, patriotic citizens. It stands on four pillars – military training, nation-building, academic and technical training and physical fitness, civic values ​​and national identity. Importantly, this youth-focused initiative has moved quickly from promise to action: The first batch of Gyalsung trainees began training in 2024 and are expected to graduate later this year. The second group is now preparing to begin their training.
Daesung, launched in 2011, got a new lease of life during and after the COVID-19 pandemic. It is voluntary – unlike Gyalsung – it has multi-age eligibility and is service-oriented. Its purpose? To instill a sense of duty, discipline and voluntarism among the citizens of Bhutan and to support national service in times of need. Over 45,000 Desuups have been trained since 2011, including specialized skills programs in IT and coding, electrical work, plumbing, drone operations, renewables and energy entrepreneurship. Simply put, it is completely connected with the new Bhutan and its quiet transformation. During PM Modi’s recent visit, the presence of orange-uniformed Descups was visible, symbolizing compassion and the courage to serve. Many Bhutanese take pride in serving as DESUP from time to time – including former Prime Minister Dasho Lotay Tshering, who famously wore an orange vest and volunteered during the COVID-19 pandemic.
Taken together, both these initiatives help connect the nation into a coherent and integrated unit.
The value addition in Bhutan’s hydropower story is no less impressive. It is well known that Bhutan, in close cooperation with India, generates clean energy through hydropower and earns a steady flow of revenue from its exports. About 40% of Bhutan’s national revenue comes from hydropower sales to India, making it a cornerstone of the country’s economy. Five successful hydropower projects define India-Bhutan cooperation in this key sector. But, since 2019, Bhutan has moved beyond using surplus hydropower to mining cryptocurrencies. With five centers established across the country and an estimated mining value of over one billion dollars, this initiative represents a strategic step to diversify and strengthen Bhutan’s revenue base, while aligning with broader national goals of self-reliance and sustainable development.
The country is also emphasizing on solar energy on a large scale. An MoU on renewable energy was signed with India on 11 November. Last year, an agreement was announced between Reliance Power and a Bhutanese state-owned enterprise aimed at building a 500 MW solar project – the country’s largest – at an estimated cost of Rs. 2,000 crores. The Government of Bhutan has also launched a National Solar Energy Roadmap, with the International Solar Alliance providing technical and financial support to accelerate deployment.
Progress in the field of education has also been remarkable. Bhutan Baccalaureate (BB) has been launched in 23 selected pilot schools across the country. Its emphasis is on a competency- and value-based framework that seeks to produce “strong individuals”, not just exam-toppers. It replaces the earlier system which was modeled on India’s CBSE, especially at the secondary and senior secondary levels. King’s famous quote that education should empower our children to think deeply, act responsibly, and lead meaningful lives – not just pass exams – holds special meaning here.
The quality of the program has already impressed, with the World Bank considering BB an exportable idea. By all accounts, this goes beyond polite interest – the bank is promoting BB as an innovation and helping bring it to market through south-south education. Brief point: Bhutan now defines its own learning goals based on gross national happiness and national needs.
Another bold (and strategic) initiative under the king’s leadership was civil-service reforms, to be launched in 2022. Its objective is not just administrative efficiency, but change in values, mindset and delivery. Structural reforms are set to be completed in 2025, even as cultural and performance reforms continue, particularly in how service delivery is delivered at the district and village block level. Clearly, the civil service is now part of an ongoing national transformation, and not simply a bureaucratic machine.
This also includes Bhutan’s deeply rooted Buddhist culture, which shapes the people’s natural disposition towards peace, compassion and contentment. These values ​​are not abstract ideals; They live daily, building the social fabric of society based on patience, discipline and coherence. Bhutanese culture has long worked its own way – respecting tradition while embracing growth, progress and value-based development in a uniquely Bhutanese rhythm.
Importantly, religion is not separate from public life in Bhutan. It is a pillar of national identity, a guide to moral living, and a quiet force behind policies that prioritize well-being over mere economic gain. In this light, Gross National Wellbeing has evolved from a static policy slogan into a dynamic, forward-looking vision that increasingly informs Bhutan’s development paths with a blend of spiritual wisdom and modern aspiration.
One last word. Today’s Bhutan has deliberately chosen not to invite large-scale industries, believing that such models may not align with its values ​​or meaningfully serve its youth. Instead, the country follows a philosophy of slow, steady development, progressing at its own pace, focusing on dignity, stability and self-reliance. Even in tourism, Bhutan has chosen quality over quantity, welcoming visitors who truly appreciate its culture, spirituality and natural beauty. The success of this approach is clear: in 2024, Bhutan received more than 145,000 tourist arrivals – a 41% increase on the previous year – and the upward trend continues in 2025. The numbers speak for themselves.
In all these aspects and more, India’s footprint is unmistakable. PM Modi’s recent visit was much appreciated – from the powerful symbolism of the Piprahwa relics on display at the Global Peace Prayer Festival, despite the terrorist attack in India on the eve of his visit, to the PM’s personal presence at the International Festival of the Buddhist Faith. This point was noted by the King of Bhutan during his address at the Changlimithang Stadium on 11 November – the issue was also repeatedly raised by the media in the public domain.
The bottom line is that India stands with the new Bhutan as it did with the old one. As Bhutan changes, the friendship deepens, resting only on the “three mutual bonds” of interest, respect and sensitivity.
Ruchira Kamboj is a former representative of India to the United Nations, New York. Views expressed are personal
