International Trade - #SectorUpdates

The majority of exports to Bhutan are hydraulic turbines, including regulators, ferrous products, petrol, wood charcoal, other coal, coke and semi coke, Portland cement, mineral products, base metals and articles, machinery, automobiles & spares, animal products, chemicals, wood, plastic, rubber and agricultural products. Electricity production and trade between India and Bhutan makes for a large industry with 1/3 of Bhutan exports to India being electricity and 90 percent of the power being generated in Bhutan to be exported to India. Much of this intra-regional trade is possible because of free trade arrangements made between the two countries.

Despite these actions, trade between the two nations is still much lower than its potential. The need exists to develop institutional linkages, for example between the Bhutan Standards Bureau and the Bureau of Indian Standards to facilitate more trade. To curb potential and current issues and to maintain and maximize trade volume between India and Bhutan, countries need to invest in infrastructure development, including the setting up of special economic zones, dry ports and industrial townships in Public-Private-Partnership mode.

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