India’s increasing growth in GDP, which rose from 3.7% annually in 1961 to 7.9% annually in 2015, has resulted in a rising demand for energy, a demand which almost doubled between 2000 and 2015. This trend is expected to continue due to urbanization, industrialization, and expansion of domestic manufacturing, encouraged by the Make in India initiative. A framework that considers a long-term road map for energy security is necessary to transform India from a country of chronic power shortages to one with reliable sources of energy. Elements of this framework would be a sustainable energy mix with stronger reliance on green energy sources such as solar and wind power, less dependency on coal, and strengthened cooperation on energy trade with neighbouring countries in South Asia. This paper discusses the long-term transboundary energy collaboration between India and Bhutan and the benefits for India in terms of diversification of energy sources as well as in overall energy security.