Bhutan

Bhutan's largest export market, the biggest source of its imports and one of the top foreign investors in the country

Last updated: July 21, 2021
  • overview
  • strengths
  • Bilateral Agreements
  • bilateral trade
  • agencies
  • Indian Mission

US$ 694.10mn is value of Bhutan's imports from India in 2019-20

Bhutan is an important pillar of India’s ‘Neighbourhood First’ policy

One-third of Bhutan’s exports to India is electricity

Up to 4,000 Bhutanese students are enrolled in Indian Universities

7.4%
Expected growth in 2020

US$ 1,083.32mn

Bilateral trade value in 2020-2021

60,000
Overseas Indians living in Bhutan

Hydropower projects

providing inexpensive, clean electricity to India, and generating export revenue

Tourism

potential through its pristine, untouched environment and their Gross National Happiness philosophy as an attraction

Agriculture

FDI in organic farming, poultry and dairy farming, floriculture and biotech

Construction

is booming due to rapid urbanization, particularly around Thimphu and Bhutan's hydropower projects

India-Bhutan Bilateral Relations

Diplomatic relations between India and Bhutan were established in 1968, following the Treaty of Friendship and Cooperation being signed in 1949 between the two countries, and revised in 2007.
State Visit of Prime Minister of India to Bhutan

Memoranda of Understanding/ Agreements were exchanged during the visit between Department of Information Technology and Telecom of RGoB and Indian Space Research Organisation.

State Visit of Prime Minister of Bhutan to India (December 28, 2018)

During the visit, the representatives discussed the Implementation of ongoing bilateral hydro-power projects in Bhutan. The commitment to jointly develop 10,000 MWs of hydropower generating capacity in Bhutan and in this regard discussed the Sankosh Hydropower Project.
Launch of the Indo-Bhutan e-library

Integrated by the Centre for Development of Advanced Computing (C-DAC), the proposed e-Library will facilitate the setting up of digital infrastructure in 12 colleges and 49 central schools across all Dzongkhags.

MoU between India and Bhutan in Environmental Collaboration

The MoU will facilitate mutual cooperation in chemical management, climate change and water management for a period of ten years. Participants across the private and public sectors in addition to members of academia will be identified for engagement.

Telephone Conversation between the Prime Ministers of India and Bhutan

During the conversation, the Heads of State committed to sustain bilateral initiatives in fighting the COVID-19 pandemic.

Launch of RuPay card Phase -II

The launch of RuPay Phase-II will allow users access to PoS terminals and ATMs in both nations.

India's Exports and Imports to Bhutan

Source: Department of Commerce

Values in US $ Millions

S.No. \Year 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1 EXPORT 333.94 468.95 509.28 546.12 657.33
2 %Growth 40.43 8.6 7.23 20.36
3 India’s Total Export 310,338.48 262,291.09 275,852.43 303,526.16 330,078.09
4 %Growth -15.48 5.17 10.03 8.75
5 %Share 0.11 0.18 0.18 0.18 0.2
6 IMPORT 149.87 281.27 307.82 377.99 370.96
7 %Growth 87.68 9.44 22.8 -1.86
8 India’s Total Import 448,033.41 381,007.76 384,357.03 465,580.99 514,078.42
9 %Growth -14.96 0.88 21.13 10.42
10 %Share 0.03 0.07 0.08 0.08 0.07
11 TOTAL TRADE 483.81 750.22 817.10 924.11 1,028.29
12 %Growth 55.07 8.91 13.1 11.27
13 India’s Total Trade 758,371.89 643,298.84 660,209.46 769,107.15 844,156.51
14 %Growth -15.17 2.63 16.49 9.76
15 %Share 0.06 0.12 0.12 0.12 0.12
16 TRADE BALANCE 184.08 187.68 201.46 168.13 286.37
17 India’s Trade Balance -137,694.93 -118,716.67 -108,504.60 -162,054.83 -184,000.33

Bhutan Chamber of Commerce & Industry (BCCI)

+975 2 322742 / 324254

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P.O. Box # 147 Doybhum Lam - Chubachu, Thimphu, Bhutan

Embassy of India, Thimphu

(+975) 2 322162

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India House Estate,Jungshina, Thimphu, Bhutan

Commercial Representative

(+975) 2 323227

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Second Secretary (Political & Economic)

Opportunities

Agricultural exports

Minerals

priority sectors

Here are the leading sectors of opportunities for foreign investors

Agriculture
Automobile
Chemicals
Electrical Machinery
Electronic Systems
Renewable Energy
Thermal Power
Tourism

Top Import/ Export Items

India's top import from Bhutan
  • Electricity
  • Ferro-silicon
  • Portland cement
  • Carbides of calcium carbides of silicon
  • Cement clinkers
  • Dolomite
  • Timber and wood products
  • Potatoes
  • Cardamom
  • Fruit products
India's top export to Bhutan
  • Mineral products
  • Machinery and mechanical appliances
  • Electrical equipment
  • Base metals
  • Vehicles
  • Vegetable products
  • Plastics and articles

Bilateral Investors

SJVNL Ltd

Country News

India approves 66 FDI proposals out of 347 from neighbouring countries

March 17, 2022

Building an Integrated South Asian Regional Power Market

October 25, 2021

Furthering Indo-Bhutan Strategic ties via BHIM-UPI

July 13, 2021

Five pillars of diplomacy are helping India maintain strategic autonomy

July 1, 2021

India’s PFC & REC to support hydropower project in Bhutan with US$559m loan

March 11, 2021
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