- Bilateral trade between India-Bhutan is heavily in India’s favour as Bhutan imports most of the things from India.
- The bilateral trade relations between India and Bhutan are governed by the Agreement on Trade, Commerce and Transit.
- The agreement provides for a free trade regime between the territories of India and Bhutan.
- The last agreement was renewed on July 29, 2006 for ten years. The validity of this agreement was extended (from July 29, 2016) for one year or till new agreement comes into force.
- The new bilateral Agreement on Trade, Commerce and Transit between India and Bhutan came into force from July 2017.
- The new agreement aims to further strengthen the bilateral trade relations between both countries.
- The new agreement signed in November 2016 provides for a free trade regime between the territories of India and Bhutan.
- It also provides for duty-free transit of Bhutanese merchandise for trade with third countries.