Over the past few months, India and Bhutan have made notable advancements on the bilateral front, with much attention going into further developing cross-border infrastructure for improved trade and connectivity. On Friday, in Thimphu (Bhutan) discussions were held with the involvement of India’s Commerce Secretary, Sunil Barthwal, and Bhutan’s Secretary of the Ministry of Industry, Commerce and Employment, Dasho Tashi Wangmo, focused on strengthening the two countries’ bilateral relationship. The meeting yielded an important outcome which included agreement to accelerate the process of establishing an Integrated Check Post (ICP) between Jaigaon (India) and Phuentsholing (Bhutan) to facilitate trade and improve border management infrastructure along the border.
Furthermore, the two countries reached an understanding that new rail links between Kokrajhar-Gelephu and Banarhat-Samtse would be constructed. These projects are expected to greatly enhance trade relations through improved movement of goods and ease of travel for people in the two countries. Another significant aspect was the operationalization of border haats and customs stations as well as agreements on timber imports, controlling food safety, and supplying fertilizer.
The important aspects of conversation also related to the announcement of the Land Customs Station at Jaigaon, which would facilitate scrap imports from Bhutan to India. In addition, the officials spoke about ways to facilitate movement for businesspersons to increase economic development. Both governments agreed to expedite agreements on timber imports as compliance with food safety standards also has increased economic interdependence.
The dialogues between Bhutan and India were also focused on the establishment of border haats for enhanced local trading in the border areas. Border haats or trade markets are perceived as another avenue to promote trade at the local level and create economic opportunities for border communities along the India-Bhutan. In addition, the two sides also engaged in discussions aimed at simplifying the mobility of business persons to further facilitate cross-border exchanges.
Importing boulders from Bhutan to India was one key area of focus. Also considered was the importation of three additional species of timber to India, further expanding trade in natural resources. Another important topic was the deployment of staff for phyto quarantine inspection services (PQIS) at the Land Customs Station (LCS) Darranga, to ensure agricultural products moving between the two countries are safe and meet quality standards.
The meeting addressed the early implementation of the agreement signed in March 2024, which symbolizes acknowledgment that India’s Food Safety and Standards Authority (FSSAI) has control over Bhutan’s Food and Drug Authority. It will ease the process of importing food products from Bhutan into India and be consistent with food safety guidelines.
Both governments have shown strong commitment to completing these projects, which are expected to reduce logistical challenges and enhance economic collaboration. The newly discussed infrastructure initiatives underline the growing strategic importance of India-Bhutan relations, especially in trade, regional connectivity, and cooperative economic growth.
