Coverage
What this agreement covers.
Goods — free trade and transit rights
Key benefits
Why this agreement matters.
- ✓ 0% duty on virtually all bilateral trade
- ✓ India grants free transit for Bhutan's third-country trade
- ✓ Bhutan uses Indian ports and railways
- ✓ Bhutanese goods enter Indian market freely
India position
How this FTA relates to India.
Both parties — India dominant partner
Aggregate trade volume among parties: USD 0.7B
Risk framework
FTA compliance risks.
| Risk | Assessment | Mitigation |
|---|---|---|
| Bhutan is landlocked — India transit dependency | Low — Bhutan-India relationship is close and stable | Standard transit documentation; no significant risks |
| Very small market — Bhutan GDP USD 3 billion | Low — small volume, but hydropower and high-value niche goods | Target niche: premium agro (Bhutan organic), hydropower infrastructure equipment |
Beneficiary verticals
Which sectors benefit.
Cited from
Referenced by these country pages.
Bhutan
Frequently asked
FAQ · India-Bhutan Trade Agreement.
Travelogue Forum
Have a question or insight on India-Bhutan Trade and Commerce Agreement? Start a thread in Trade Agreements & Policy.
Discuss on the Forum →