An Agreement on Trade, Commerce and Transit between India and Bhutan has been signed by the Union Cabinet. This move is set to strengthen the regional value chain.
Presently, the bilateral trade relations between India and Bhutan are governed by the Agreement on Trade, Commerce and Transit between the Government of India and Bhutan. The Agreement provides for a free trade regime between the two countries.
The Agreement also provides for duty free transit of Bhutanese merchandise for trade with third countries.
India is Bhutan’s largest trading partner. Major imports from India to Bhutan are diesel, parts of hydraulic turbines, including vegetables, nuts, spices and processed food.
The major items of export from Bhutan to India include potatoes, cardamom and fruit products.
During the last financial year, India exported goods worth over USD 440 million to Bhutan and imports were valued around USD 280 million.
Source: knnindia.co.in
