Trade Overview
Trade between India and Bhutan remains one of South Asia’s most stable and strategic economic partnerships. Governed by the India-Bhutan Agreement on Trade, Commerce and Transit, both countries enjoy duty-free access and simplified regulations, fostering strong cross-border flows of goods and services. India continues to be Bhutan’s largest trading partner, accounting for around 80% of Bhutan’s overall trade.
Total India-Bhutan bilateral trade was approximately USD 1.90 billion (₹15,000 crore) in FY 2024-25 (India’s exports + imports). This represents a significant expansion over the past decade (from USD 484 million in FY 2014-15 to nearly USD 1.9 billion in FY 2024-25).
The India-Bhutan trade partnership continues to grow and remains strategically important. Official trade figures for 2024-25 show rising volumes on both sides, reflecting sustained engagement. Addressing practical barriers and promoting diversification will help businesses leverage this long-standing economic cooperation.
Indian Exports to Bhutan
India’s exports to Bhutan were about USD 1.26 billion in FY 2024-25. These include key categories such as petroleum products, machinery and equipment, iron & steel, electrical goods, vehicles and cereals as core components supporting Bhutan’s infrastructure and industrial needs.
Major Commodities Included:
- Petroleum products
- Motor vehicles and spare parts
- Machinery and equipment
- Construction materials (steel, cement inputs)
- Food products and FMCG goods
- Pharmaceuticals
- Consumer goods
- Food and agricultural products
This diverse export basket reflects India’s role as a supplier of essential industrial and consumer goods.
Bhutanese Exports to India
India’s imports from Bhutan stood at approximately USD 641.7 million in FY 2024-25. According to UN Comtrade data for calendar year 2024, imports from Bhutan were about USD 435.6 million, with major products including iron and steel, aerospace parts, cement/raw materials, beverages, and wood products.
Major Imports from Bhutan Comprised:
- Hydropower (electricity – largest component of trade, approx. USD 425 million)
- Ferro alloys (primarily ferro silicon; major industrial input, approx. USD 175 million)
- Cement
- Dolomite
- Cardamom
- Minerals and base metals (Other imports approx. USD 20.6 million)
India’s Cement Imports from Bhutan (FY 2024–25)
| Category | HS Classification | Value (USD Million) | Remarks |
|---|---|---|---|
| Cement & related stone products | HS 25 (Salt, sulphur, earth, stone, lime & cement) | 93.8 | Includes cement along with other mineral products |
| Hydraulic cement | HS 2523 | 18.1 | More precise cement-specific classification |
| Cement clinkers | HS 252310 | 2.95 (53,509 tonnes) | Physical quantity reported under clinker imports |