India and Bhutan Strengthen Trade and Infrastructure Ties

India and Bhutan Strengthen Trade and Infrastructure Ties
  • India and Bhutan agreed to speed up cross-border infrastructure development.
  • New integrated check posts and rail links are planned.
  • Discussions included trade routes, haats, and import regulations.

India and Bhutan have made significant strides in deepening their bilateral relations, particularly in the areas of trade, infrastructure, and connectivity. The recent India-Bhutan Commerce Secretary Level Meeting (CSLM) in Thimphu, co-chaired by commerce secretary Sunil Barthwal and his Bhutanese counterpart Dasho Tashi Wangmo, reflects the commitment of both nations to enhance their economic partnership.

A key outcome of the meeting was the agreement to expedite the development of cross-border infrastructure, including the establishment of an integrated check post at Jaigaon-Phuentsholing and rail-links between Kokrajhar-Gelephu and Banarhat-Samatse. This ambitious project is expected to significantly boost trade and facilitate seamless movement of goods and people between the two countries. The integrated check post will streamline customs and immigration procedures, while the rail links will provide a cost-effective and efficient mode of transportation.

Beyond infrastructure development, the CSLM also addressed a range of trade-related issues. Discussions centered on opening additional routes for the import of areca nut to India, facilitating the movement of businesspersons, and establishing haats along the India-Bhutan border. These measures are aimed at fostering a conducive environment for bilateral trade and promoting cross-border economic activity.

The meeting further delved into the import of boulders from Bhutan to India, the inclusion of additional timber species for import, and the deployment of personnel for phyto quarantine inspection services at Darranga. These discussions reflect the commitment of both nations to streamline trade processes and enhance the efficiency of cross-border transactions.

Recognizing the importance of food safety and standards, the two sides discussed the early operationalisation of an agreement signed in March 2024 for the recognition of official control exercised by the Bhutan Food and Drug Authority (BFDA) by the Food Safety and Standards Authority of India (FSSAI). This agreement is crucial for facilitating trade in food products and ensuring the safety of consumers in both countries.

The CSLM also witnessed progress on finalising agreements between the National Seed Centre, Bhutan and the Brahmaputra Valley Fertilizer Corporation Limited, India for the supply of fertilizers to Bhutan. This cooperation is essential for enhancing agricultural productivity and food security in Bhutan.

Both sides expressed satisfaction with the progress in bilateral trade, commerce, connectivity, and investment partnership. They noted the recent signing of a bilateral MoU on the general supply of petroleum, oil, and lubricants (POL) and related products from India to Bhutan, further solidifying their energy cooperation.

The India-Bhutan CSLM underscores the strong bilateral relationship between the two countries and their commitment to working together to promote economic growth, development, and prosperity. The decision to hold the next meeting in India at a mutually convenient date further emphasizes the ongoing dialogue and cooperation between the two nations.

Source: India and Bhutan discuss trade, new integrated border check-posts

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