The Bhutanese Leading the way.
Recent reports of India’s withdrawal of transshipment facilities for goods from Bangladesh which raised concerns in Bhutan, particularly since Bangladesh is a significant trade partner, has been clarified by the Ministry of Industry, Commerce, and Employment (MoICE).
MoICE clarified that these changes do not affect Bhutan’s imports or exports with Bangladesh.
The recent notification issued by the Government of India pertains to Bangladeshi cargo destined for third countries via the LCS (Land Customs Station) Petrapole route.
Bhutan’s trade does not rely on this route and remains unaffected by the policy update. The existing transit arrangements through the LCS Fulbari and Changrabandha routes continue to operate normally, ensuring a smooth flow of goods and raw materials from Bangladesh into Bhutan.
As of now, there have been no reports of disruption from Bhutanese importers as a result of this recent policy update. However, MoICE stated that they remain fully engaged and stand ready to assist any businesses that seek clarification or support to facilitate smooth trade operations.
The ministry also stated that Bhutan’s existing transit arrangements with India remain stable and reliable. India has been a longstanding and trusted partner in facilitating Bhutan’s trade, and our access is secured under the Free Trade Agreement between the two countries. While diversification is an ongoing consideration in our broader trade strategy, there is no immediate need for alternative modalities in response to this development.
In 2024, Bhutan’s imports from Bangladesh totaled Nu 1.37 billion, and exports to Bangladesh were valued at Nu 6.34 billion. Both imports and exports are neither suspended nor restricted. MoICE has confirmed that there has been no disruption in the supply of goods or services as a result of the policy change.
MoICE also stated that Bhutan’s trade with Bangladesh remains stable, and the circular issued by India only impacts Bangladeshi exports to third countries. As a result, concerns regarding trade asymmetry between Bhutan and Bangladesh are not relevant.
