India and Bhutan vowed to further strengthen their "exceptional" ties with Prime Minister Narendra Modi conveying to his Bhutanese counterpart Tshering Tobgay that New Delhi remains committed to partner with Thimphu in its quest to become a high-income nation.

Two days after the Modi-Tobgay talks, a joint statement released on Saturday said the two prime ministers agreed to expand the existing India-Bhutan energy partnership beyond the hydro-power sector to include solar, wind power and green hydrogen.

It said India's development assistance for Bhutan will be geared towards the development of infrastructure, building connectivity in its "broadest form" which includes road, rail, air and digital connectivity.

In the talks, Modi appreciated Bhutanese King's vision of the Gelephu Mindfulness City as it will lead to economic prosperity in Bhutan and in the region in a sustainable manner, besides further strengthening India-Bhutan economic and investment linkages, the statement said.

It said Tobgay thanked India for its development assistance of Rs 5000 crore for Bhutan's 12th five-year-plan, which has "immensely contributed" to the socio-economic well-being of the people of that country.

Tobgay arrived in Delhi on Thursday on a five-day visit to India, his first foreign trip after assuming the charge of the top office in January. The Modi-Tobgay talks took place hours after his arrival.

The joint statement said both sides reaffirmed their resolve to further strengthen the "long-standing and exceptional bilateral ties that exist between the two countries."

"Prime Minister Modi conveyed that India remains committed to partner with Bhutan in its quest to become a high-income nation in consonance with the vision of His Majesty the King and the priorities of the people and the Royal Government of Bhutan," it said.

"The India-Bhutan partnership is characterized by utmost trust, goodwill, and mutual understanding at all levels and is reinforced by robust people to people linkages and close economic and development partnership," it noted.

On cooperation in the energy sector, it said both prime ministers agreed to expand the existing India-Bhutan energy partnership to non-hydro renewables, such as solar and wind as well as green initiatives for hydrogen and e-mobility besides energy efficiency and conservation measures. The two sides reaffirmed the significance of cooperating closely in the energy sector.

Modi and Tobgay reiterated their "firm commitment" to expanding hydro-power cooperation and directed their officials to hold expeditious consultations on implementation modalities for new projects.

"The two sides expressed satisfaction with the progress in construction of the 1020 MW Punatshangchhu-II hydro power project and looked forward to its commissioning in 2024," the joint statement said.

They noted with satisfaction the progress made towards finding a technically safe and cost-effective way forward on the Punatsangchhu-I hydro power project.

"Both sides welcomed measures to enhance connectivity between India and Bhutan, including the development of rail and road connectivity and the upgradation of trade infrastructure for the seamless movement of people and goods," according to the statement.

It said the two sides noted with satisfaction the progress on opening of additional points for immigration and trading routes.

"The two sides noted the progress towards establishment of two rail-links Banarhat (West Bengal) -- Samtse (Bhutan) and Kokrajhar (Assam) --Gelephu (Bhutan). Northeast Frontier Railway (NFR) is undertaking the Final Location Survey (FLS) of the two rail-links in consultation with the Bhutanese side," it said.

India and Bhutan also reaffirmed their desire to continue strengthening the positive collaboration between India and Bhutan in new and emerging areas such as digital technology and start-ups.

"India's development assistance will be geared towards the development of infrastructure, building connectivity in its broadest form which includes road, rail, air and digital connectivity, and in sectors like agriculture, healthcare, education, skilling and cultural preservation," the statement said.

The Bhutanese prime minister left for Mumbai on Saturday.