India and Bhutan Strengthen Trade and Connectivity at High-Level Meeting in Thimphu

The high-level talks focused on enhancing bilateral trade, connectivity, and infrastructure between the two nations.

Commerce Secretary of India, Shri Sunil Barthwal, and Bhutan’s Secretary of Ministry of Industry, Commerce, and Employment (MoICE), H.E. Dasho Tashi Wangmo, co-chaired the India-Bhutan Commerce Secretary Level Meeting (CSLM) in Thimphu on 27-28 September 2024. The high-level talks focused on enhancing bilateral trade, connectivity, and infrastructure between the two nations. key Highlights of the Meeting:

Cross-Border Trade and Connectivity: Both sides agreed to expedite the development of key cross-border infrastructure, including the establishment of an Integrated Check Post (ICP) at Jaigaon-Phuentsholing and the construction of two rail links: Kokrajhar-Gelephu and Banarhat-Samtse. These projects are expected to improve trade efficiency and regional connectivity.

New Trade Routes and Facilities:

India will soon notify Land Customs Stations (LCS) at Hatisar and Darranga as additional routes for the import of areca nuts from Bhutan.

LCS Darranga is also to be designated as an entry point for food item imports.

A commitment was made to upgrade infrastructure at Samrang, which will then be notified as an LCS.

Additional Trade Enhancements:

India will consider the notification of LCS Jaigaon for the import of scrap from Bhutan, as both sides discussed increasing trade in high-demand materials.

Discussions included expanding the import of boulders from Bhutan, which are critical for construction in India's northeastern states, and allowing the import of three new timber species from Bhutan.

Border haats (markets) were discussed as a means to further promote local trade and strengthen economic ties along the India-Bhutan border.

Quarantine and Inspection Services: India will deploy personnel to provide Phyto Quarantine Inspection Services (PQIS) at LCS Darranga, facilitating smoother agricultural trade between the two countries.

Food Safety and Seed Agreements:

Both sides agreed to expedite the recognition of the Bhutan Food and Drug Authority (BFDA) by India’s Food Safety and Standards Authority of India (FSSAI), underlining a commitment made earlier this year.

Efforts to finalize an agreement between Bhutan's National Seed Centre and India’s Brahmaputra Valley Fertilizer Corporation Limited for fertilizer supply were also highlighted as a priority.

Facilitating Business and Movement: Both governments discussed measures to ease the movement of businesspersons across the border to strengthen trade ties and investment opportunities.

Trade and Cooperation Progress: The meeting provided a platform to review the progress of existing trade arrangements. Both countries acknowledged successful cooperation in ensuring the smooth flow of essential goods, including potatoes, wheat, sugar, non-basmati rice, fertilizers, and coal.

Recent agreements, such as the Memorandum of Understanding (MoU) on the general supply of Petroleum, Oil, Lubricants (POL), and the March 2024 food safety agreement, were commended as crucial steps towards a stronger partnership.

Additionally, both sides reviewed the finalization of the text for the MoU concerning the establishment of rail links, a landmark agreement that promises to revolutionize trade logistics between India and Bhutan.

Future Plans: Both countries reaffirmed their commitment to expanding their robust trade relationship. They agreed to hold the next Commerce Secretary Level Meeting in India at a mutually convenient time, continuing the tradition of high-level exchanges to promote trade, connectivity, and mutual development.

The visit of India’s Commerce Secretary to Bhutan underscores the long-standing ties of friendship and cooperation between the two neighboring countries, both of which are committed to fostering sustainable growth and regional stability through collaborative trade and infrastructure development.