New trade pact between India and Bhutan begins from July 29

The Dollar Business Bureau

A new trade agreement between India and Bhutan has come into force from July 29. This was signed between the two countries on November 12, 2016. The move will further strengthen the bilateral trade ties between India and Bhutan an official communique read.

‘The agreement provides for a free trade regime between the countries and it also gives duty free transit of Bhutanese goods for trade with third countries,’ the Indian commerce ministry said in a statement.

The bilateral trade relations are governed by this agreement.

Renewal of this agreement was done on July 29, 2006 for ten years with its validity gaining an extension of a year on July 29, 2016, or till the new agreement comes into force.

Bilateral trade between India and Bhutan stood at $808.72 million in 2016-17, an increase from $750.02 million in the earlier fiscal.