India, Bhutan Signed New Bilateral Trade Agreement- Important (Download PDF)

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Commerce and Industry Minister Nirmala Sitharaman and Bhutan՚s Economic Affairs Minister Tengye Lyonpo Lekey Dorji signed the Bilateral trade agreement in New Delhi to improve ease of doing trade.

Image Fo Nirmala Sitharaman

Aims of Agreement

  • Cutting down on documentation.
  • Adding additional exit.
  • Entry points for Bhutan՚s trade with other countries.
  • Strengthen the relations between the two countries.


  • The first Agreement on Trade and Commerce between Bhutan and India signed in 1972.
  • Agreement was renewed four times.
  • Last Agreement renewed on July 28,2006 valid until July 29,2016.
  • Validity of the Agreement extended for a period of one year or until the date of enforcement of the new Agreement.

Trading between Countries

  • India is Bhutan՚s largest trading partner.
  • A free trade regime exists between India and Bhutan.
  • Major imports from India to Bhutan are diesel, parts of hydraulic turbines, including regulators, ferrous products, petrol, wood charcoal, other coal, coke and semi coke, Portland cement, husked brown rice, mineral products, base metals and articles, machinery, automobiles & spares, vegetables, nuts, spices, processed food and animal products, chemicals, wood, plastic and rubber.
  • The major items of export from Bhutan to India are electricity from the four Hydropower Plants of Basochhu, Chukha, Tala and Kurichhu, ferro silicon, portland cement, dolomite, carbides of calcium, carbides of silicon, cement clinkers, timber and wood products, potatoes, cardamom, fruit products etc.
  • A total of 1840MW of electricity is generated, out of which about 460MW consumed domestically and the rest is exported to India.

- Published/Last Modified on: September 6, 2017


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