Cabinet clears new agreement on trade, commerce with Bhutan
The Dollar Business Bureau
The government on Thursday approved the new agreement between India and Bhutan on Trade, Commerce and Transit, as stated in the official release, “the Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved an Agreement on Trade, Commerce and Transit between India and Bhutan.”
The bilateral trade ties between the governments of India and Bhutan are governed by this agreement, which provides for a free trade regime between the two countries.
This agreement also provides for a duty-free transportation of Bhutanese goods for trade with other countries.
The agreement on Trade, Commerce and Transit with Bhutan was renewed on July 29, 2006 for a period of 10 years. The validity of the agreement was further extended for a period of one year or till the time when the new pact comes into effect, through discussion at diplomatic level.
Over the years, the traditionally exclusive bilateral ties characterised by understanding and trust between the two countries have matured and would be strengthened further by implementing the proposed agreement on Trade, Commerce and Transit Agreement.
India is the largest trading partner of Bhutan. In 2014, the bilateral trade between the two nations grew by about 9.31% and reached Rs.7965 crore. The imports from India were Rs.4785 crore, which make for 84.13% of Bhutan’s overall imports. The exports from Bhutan to India were Rs.3179 crore (including electricity) and accounted for 89.38% of its overall exports.