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South Asia

Export to Bhutan

Duty-free, rupee-based neighbour market reached by road from West Bengal and Assam.

Capital
Thimphu
Currency
BTN
Trade agreement with India
India–Bhutan Agreement on Trade, Commerce and Transit; also SAFTA
In force (free trade regime)
Main ports
Phuentsholing (opposite Jaigaon, West Bengal), Gelephu, Samdrup Jongkhar (opposite Darranga, Assam)

Bhutan buys most of its imports from India — fuel, rice, food, vehicles, machinery, building materials and consumer goods. There is no customs duty and payment is in rupees, so it is a simple market for small exporters in the North-East and North Bengal. Goods mostly cross by road at Jaigaon–Phuentsholing.

India–Bhutan Agreement on Trade, Commerce and Transit; also SAFTA

The agreement provides free trade between the two countries: no basic customs duty is charged on goods going to or coming from Bhutan, and trade is carried out in Indian rupees and Bhutanese ngultrum (Department of Commerce Annual Report 2024-25).

What it buys from India

  • Petroleum products and electricity-sector equipment
  • Rice, food and processed food
  • Vehicles, machinery and building materials
  • Medicines and consumer goods

Import rules on their side

  • Food, plants and animal products are checked at the border by the Bhutan Food and Drug Authority (formerly BAFRA).
  • Bhutan does not charge basic customs duty on Indian goods, but sales tax and other domestic levies may apply; the importer handles these.
  • Bhutan sometimes restricts imports of certain goods (for example vehicles) to manage its foreign-currency position; check with the buyer.

Practical tips

  • Still file a shipping bill and get paid through a bank so your export counts and you can claim export benefits.
  • Government agencies and hydropower projects are big buyers; watch Bhutanese government tenders.
  • Mountain roads close during heavy monsoon rain; build in extra transit time from June to September.
Sources (3)
  1. Department of Commerce — Annual Report 2024-25 (trade agreements chapter)
  2. Department of Revenue and Customs, Bhutan
  3. Department of Commerce — TradeStat export-import data bank

Trade data

India’s exports to Bhutan in numbers

From the Department of Commerce’s TradeStat (Indian financial years, April–March), the country’s imports from the world from UN Comtrade, and its basics from the World Bank.

India’s exports here, 2025-26
US$ 1.25 bn
No. 29 of our 30 countries
Change from 2024-25
↓ -0.9%
US$ 1.26 bn → US$ 1.25 bn
Share of all Indian exports
0.28%
Its imports from the world
US$ 1.57 bn
2022 · India’s share 71.39%
2020-21: US$ 701 mn7012020-212021-22: US$ 886 mn8862021-222022-23: US$ 1.08 bn1.1k2022-23n/a2023-242024-25: US$ 1.26 bn1.3k2024-252025-26: US$ 1.25 bn1.3k2025-26
India’s exports to Bhutan, year by year · US$ million · TradeStat’s 2023-24 country table is double-counted, so it is not shown

What India sells here most

By HS chapter, 2025-26. Change is against 2024-25.

Name2025-26Change
1Fuels and petroleum productsHS 27US$ 336 mn+20.6%
2MachineryHS 84US$ 121 mn+21.5%
3Iron and steelHS 72US$ 90.3 mn+16.2%
4Electrical and electronicsHS 85US$ 86.2 mn-34.6%
5Vehicles and partsHS 87US$ 74.8 mn+34.5%
6WoodHS 44US$ 48.1 mn+10.6%
7Cereals (rice, wheat, maize)HS 10US$ 45.2 mn+4.9%
8Iron and steel articlesHS 73US$ 41.5 mn-17.4%
9PlasticsHS 39US$ 35.4 mn+0.1%
10Fats and oilsHS 15US$ 27.8 mn+11.5%
11Dairy, eggs, honeyHS 04US$ 25.1 mn+2%
12RubberHS 40US$ 17.3 mn-0.2%

What is rising and what is falling

Chapters where India sells at least US$ 5 million. Change from 2024-25 to 2025-26.

High demand

  1. Flour, malt, starchUS$ 5.2 mn → US$ 7.4 mn+41%
  2. Vehicles and partsUS$ 55.6 mn → US$ 74.8 mn+34.5%
  3. Other chemical productsUS$ 12.7 mn → US$ 16.5 mn+30.5%
  4. MeatUS$ 9.4 mn → US$ 12.2 mn+29.8%
  5. MachineryUS$ 99.2 mn → US$ 121 mn+21.5%
  6. Fuels and petroleum productsUS$ 279 mn → US$ 336 mn+20.6%
  7. Animal feed and food residuesUS$ 11.5 mn → US$ 13.7 mn+19.4%
  8. Salt, stone, cementUS$ 11.8 mn → US$ 13.7 mn+16.6%

Low demand

  1. TobaccoUS$ 12.4 mn → US$ 8 mn-35.2%
  2. Electrical and electronicsUS$ 132 mn → US$ 86.2 mn-34.6%
  3. VegetablesUS$ 12.8 mn → US$ 10.1 mn-21.3%
  4. Other food preparationsUS$ 15.7 mn → US$ 12.4 mn-21.2%
  5. Iron and steel articlesUS$ 50.2 mn → US$ 41.5 mn-17.4%

Opportunity: what this country buys from the world, and from India

The country’s own recorded imports in UN Comtrade, 2022. Chapters with the biggest gap between what it buys from the world and what it buys from India.

MachineryUS$ 303 mnIndia 27.4% · gap US$ 220 mn
Electrical and electronicsUS$ 172 mnIndia 64.9% · gap US$ 60.2 mn
Vehicles and partsUS$ 56.2 mnIndia 69.2% · gap US$ 17.3 mn
Fuels and petroleum productsUS$ 243 mnIndia 98.5% · gap US$ 3.7 mn
WoodUS$ 54.7 mnIndia 98.2% · gap US$ 990k
Iron and steelUS$ 77.3 mnIndia 99.6% · gap US$ 310k

Our product guides that sell here

India’s exports of each product to this country, 2025-26.

Name2025-26Change
1Dairy productsUS$ 24.8 mn+2%
2Paper and paperboard packagingUS$ 1.7 mn-10.3%
3Fresh onionUS$ 1.3 mn-42.5%
4Sports goodsUS$ 890k+11.2%
5Fresh mangoUS$ 880k-13.7%
6Fresh bananaUS$ 760k-2.6%
7Jaggery (gur)US$ 440k+340%
8MushroomsUS$ 440k+10%
9Brass and art metalwareUS$ 150k-6.3%

The 20 biggest export lines

4-digit HS lines, 2025-26, with their Harmonized System descriptions.

Name2025-26Change
1Petroleum oils and oils from bituminous minerals, not crudeHS 2710US$ 240 mn+19.7%
2Motor cars and other motor vehiclesHS 8703US$ 38.8 mn+39%
3Electrical energyHS 2716US$ 38.3 mn+89.1%
4Wood charcoal, whether or not agglomeratedHS 4402US$ 36.7 mn+16.3%
5RiceHS 1006US$ 34.8 mn+23.9%
6Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps…HS 7203US$ 30.1 mn+28.7%
7Coke and semi-cokeHS 2704US$ 29.6 mn-4.5%
8Bulldozers, graders, levellers, scrapers, angledozers, mechanical shovels, excavators, shovel loaders…HS 8429US$ 22.2 mn+147.5%
9VehiclesHS 8704US$ 21.3 mn+62.4%
10Soya-bean oil and its fractionsHS 1507US$ 16.8 mn+7.6%
11Petroleum coke, petroleum bitumenHS 2713US$ 16.8 mn+15.8%
12Insulated wire, cable and other electric conductors, connector fitted or notHS 8544US$ 16.7 mn-1.9%
13Telephone sets, including smartphones and other telephones for cellular/wireless networksHS 8517US$ 14.7 mn-16.1%
14Boards, panels, consoles, desks, cabinets, bases with apparatus of heading no. 8535, 8536 for electricity…HS 8537US$ 13.5 mn-7.5%
15Electric transformers, static converters and inductorsHS 8504US$ 13.3 mn-52.5%
16Structures of iron or steel and parts thereofHS 7308US$ 13 mn-30.2%
17New pneumatic tyres, of rubberHS 4011US$ 12.8 mn+3.2%
18Iron or steelHS 7306US$ 12 mn-11.3%
19Iron or non-alloy steel, angles, shapes and sectionsHS 7216US$ 10.9 mn+10.9%
20Ferrous waste and scrapHS 7204US$ 10.6 mn+129.9%

What India buys from Bhutan

India’s imports from this country in 2025-26 by HS chapter, from TradeStat — this country can be your supplier too.

India’s imports, 2025-26
US$ 821 mn
US$ 642 mn → US$ 821 mn
India’s exports, 2025-26
US$ 1.25 bn
Trade balance
+US$ 432 mn
exports minus imports
Change in imports
+27.9%
Name2025-26Change
1AircraftHS 88—+60.6%
2Iron and steelHS 72—+10.4%
3Fuels and petroleum productsHS 27—+38.9%
4Salt, stone, cementHS 25—+19.1%
5BeveragesHS 22—-7.4%
6WoodHS 44—+66.2%
7Inorganic chemicalsHS 28—-10.2%
8Coffee, tea, spicesHS 09—+38.9%
9MachineryHS 84—-21.2%
10Bakery and cereal foodsHS 19—-19%

The country at a glance

Population
797k
2025
GDP
US$ 3.58 bn
2025
GDP per person
US$ 4,493
2025
Imports (goods and services)
US$ 1.6 bn
2024

Sources: TradeStat — Export Import Data Bank, Department of Commerce · UN Comtrade database (United Nations Statistics Division) · World Bank — World Development Indicators · Figures taken 29 October 2026.

What to send to Bhutan

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