Bhutan, which was once a remote Himalayan kingdom that prioritized Gross National Happiness (GNH), is currently at the forefront of a dramatic national revolution. Bhutan is quickly changing its economy, identity, and place in the world with its large green energy projects, high-tech cities, and creative trade alliances.
The upcoming Gelephu International Airport, a key component of Bhutan’s new infrastructure strategy, is among the most innovative developments. The airport, which will open in 2029, was created by the internationally recognized architecture firm BIG and will combine carbon-neutral design with practicality and mindfulness. Expected to handle more than 1.3 million passengers a year, the airport features natural ventilation, trackless electric trams, solar-paneled rooftops, and forested interiors. It serves as the focal point of Gelephu Mindfulness City, a special administrative area being developed as a regional center for green innovation, wellness tourism, and artificial intelligence.
Bhutan’s eagerly anticipated integration into regional rail networks is also anchored by the airport. The 57-kilometer broad-gauge line that will connect Gelephu and Kokrajhar in Assam, India, is the country’s first railway link, and plans are currently underway under the leadership of its Prime Minister Tshering Tobgay. When completed by 2026, this crucial route will significantly cut down on both passenger travel time and freight expenses. To further enhance trade logistics and regional connectivity, Bhutan’s Ministry of Infrastructure and Transport has also identified possible extensions to other border towns, such as Phuentsholing and Samdrup Jongkhar.
Bhutan is also experiencing a significant electric vehicle (EV) revolution. As of mid-2025, over 850 EVs have been registered, most of them in Thimphu. With zero import duties on EVs and spiking fossil fuel prices, demand is surging among taxi drivers and urban professionals alike. The government has set bold goals—full electrification of public buses by 2035 and a net-zero surface transport system by 2050. Backed by UNDP, the Global Environment Facility (GEF), and Japan, over 23 EV charging stations are being rolled out nationwide, with Thimphu and Paro already hosting several. Chandra bahadur Gurung The Minister of Infrastructure and Transport envisions a safe, reliable , sustainable and efficient transport sector that supports and enhances the well being of citizens.
The digital transformation of public transportation is also underway. More than 4,000 buses could now be tracked in real time on Google Maps thanks to a new initiative launched in 2025, greatly improving the dependability of travel planning for both residents and visitors. Electric bus fleets are being piloted in Thimphu, Paro, and Gelephu, with an emphasis on increasing frequency, guaranteeing affordability, and extending routes. Bhutan is working on integrated ticketing and mobility apps at the same time as part of its larger initiative to promote smart services and digital finance.
Bhutan is promoting non-motorized and shared transportation options in addition to buses and electric vehicles. Particularly in small urban centers like Thimphu and Gelephu, walkable streets, bike lanes, bike-sharing stations, and pedestrian-first zones are now given priority in urban planning in accordance with its Low Emission Development Strategy. To lessen traffic and emissions, policies that encourage carpooling and shared mobility platforms are also being considered.
The nation’s lifeline, the road system, is undergoing a significant upgrade. The East-West Highway and strategic connections between economic corridors are the main goals of climate-resilient projects funded by the Asian Development Bank, Japan, and India. In a mountainous nation on the front lines of climate change, these roads are being climate-proofed to withstand landslides, runoff from glacier melt, and increased monsoon variability—all significant challenges.
Bhutan’s transport transformation is as much about sustainability as it is about economic strategy. Improved connectivity is expected to enhance regional trade, expand tourism access, and facilitate new industries such as hydropower exports and data infrastructure. Already, Drukair has launched direct flights to Dubai, signaling Bhutan’s growing ambition to position itself as a gateway between South Asia and the world.
However, challenges remain. Youth unemployment, high real estate prices, and limited local technical expertise could slow the pace of reform. Moreover, while Bhutan is a climate leader, its roads and energy infrastructure remain vulnerable to glacial floods and extreme weather. That’s why the government is not only investing in hard infrastructure but also in climate-smart planning, policy reform, and digital integration to ensure transport serves all sectors of Bhutanese society.
Bhutan is creating a connected, environmentally friendly, and distinctively its own transportation system, whether it is through electric buses that glide past dzongs or the world’s most considerate airport that rises in the southern foothills.
Dr. Neeraj A Sharma
Honorary Consul General of The Republic of Palau to India