Oct 27, 2025
India-Bhutan Rail Projects Poised to Boost Regional Trade and Connectivity
JALPAIGURI, October 2025 — The announcement of the first-ever railway connectivity between India and Bhutan has generated significant optimism for enhanced cross-border trade, tourism, and economic development in West Bengal’s Jalpaiguri district and the neighbouring Dooars region. The two new cross-border links the Banarhat–Samtse line and the Kokrajhar–Gelephu line — mark the Himalayan kingdom’s inaugural international railway connections and are expected to reshape regional connectivity.
Union Railway Minister Ashwini Vaishnaw unveiled plans for two key rail links with a combined outlay of ₹4,033 crore. The shorter Banarhat (West Bengal)–Samtse (Bhutan) project is planned as a roughly 20-kilometre line with an estimated cost of ₹577 crore and a target completion timeline of three years. The longer Kokrajhar (Assam)–Gelephu (Bhutan) line is planned at about 69 kilometres, with an estimated cost of ₹3,456 crore and a proposed construction period of four years.
Local and regional economic actors expect the new lines to be a turning point for bilateral commerce. Freight connectivity will give Bhutan more direct and competitive access to Indian markets and seaports, lowering transport costs for exports and imports. Passenger services are also projected to boost tourism flows easier rail access from West Bengal and Assam could increase visitor numbers to Bhutan and open new tourism circuits through Jalpaiguri and the Dooars. These projects are likewise framed by Indian officials as adding strategic and logistical depth to the region.
The rail initiative builds on prior India–Bhutan cooperation on rail connectivity. The two governments had earlier agreed in principle on railway links, and the specific Memorandum of Understanding (MoU) for the current projects was initialled during Prime Minister Narendra Modi’s state visit to Bhutan in March 2024 and subsequently finalised ahead of the September 2025 announcement. The visit helped move the projects from study to implementation.
Local business leaders and tourism bodies have welcomed the announcement. The Secretary of the Jalpaiguri District Chamber of Commerce noted the potential for enhanced trade and socio-economic development, and tourism forums have urged improvements to immigration and border-processing facilities so the tourism uplift can be captured fully. Officials have also described institutional steps — such as the designation of the Kokrajhar–Gelephu alignment as a Special Railway Project intended to fast-track land acquisition and construction procedures.
These upcoming rail corridors represent a substantial infrastructure investment that signals a commitment to deeper economic integration and closer India–Bhutan ties. Beyond freight and passenger movement, the projects are likely to create jobs during construction, stimulate ancillary businesses in Jalpaiguri, the Dooars, and parts of Assam, and open new avenues for cultural and people-to-people exchange that fit into a broader vision of enhanced South Asian connectivity.
Source: ETV Bharat
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