India continues to be the largest development partner of Bhutan. Planned development efforts in Bhutan began in the early 1960s. The First Five Year Plan (FYP) of Bhutan was launched in 1961. Since then, India has been extending financial assistance to Bhutan’s FYPs. So far, nine Five Year Plans of Bhutan have been completed.

Plan-wise allocations made by the Royal Government, showing India's contribution therein, are as follows:

[in Rs. crores]
Year	Total Allocations	India’sContribution	% of India’s Contribution
1961–66 [1st Plan]	10.72	10.72	100%
1966–71 [2st Plan]	20.22	20.22	100%
1971–76 [3st Plan]	47.52	42.66	90%
1976–81 [4th Plan]	110.62	85.30	77%
1981–87[5th Plan]	444.05	134.00	30.2%
1987–92 [6th Plan]	950.00	400.00	42.1%
1992–97 [7th Plan]	2350.00	750.00	31.9%
1997–2002 [8th Plan]	4000.00	1050.00	26%
2002-2008 [9th Plan]	8900.00	2610.14	29.33%
2008-2013 [10th Plan]	14800.00	3400.00	23%
* Excludes our assistance for mega projects

India has also contributed to Bhutan's development outside the scope of the Five Year Plans. Some of the major projects in Bhutan carried out with Indian assistance in the past include 1020 MW Tala Hydroelectric Project, 336 MW Chukha Hydroelectric Project, 60 MW Kurichhu Hydroelectric Project, Penden Cement Plant, Paro Airport, Bhutan Broadcasting Station, Major Highways, Electricity Transmission and Distribution System, Indo-Bhutan Microwave Link, Exploration of Mineral Resources, Survey and Mapping, 350 bedded JDWNR Hospital in Thimphu, Regional Referral Hospital in Mongar, Phase I of double-laning of Thimphu-Phuentsholing road, double laning of Paro-Chuzom road, construction of 10 new schools, 306 low income housing units, Renovation of Semtokha Dzong, two Youth Centres, RENEW Centre, Human Resource Development, Telecommunications, projects in agriculture and allied sectors and feasibility studies for establishing rail linkages between border towns of India and Bhutan.