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How did Bhutan’s five-year development plans depend on assistance from India?

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Bhutan’s series of five-year development plans, which began in 1961, have relied heavily on assistance from India to achieve their objectives. This dependence is characterized by two primary factors:

Financial Support: The success of these plans has been largely contingent upon a regular flow of funds provided by the Indian government to support Bhutan’s development budget.1
Technical Expertise: The implementation of these plans has depended on the availability of Indian technical personnel to assist with various projects.1

Much of the funding and effort directed through these five-year plans has focused on improving infrastructure and exploiting the country's agricultural and power resources. This partnership has been mutually beneficial; for instance, the development of the Chhukha Hydel hydroelectric power project, supported by this cooperation, allowed Bhutan to meet its own energy needs while exporting surplus electricity to India. Furthermore, India’s ongoing interest and investment in Bhutan remain a significant driver of the country's broader economic growth and institutional development.12