Lok Sabha Question No. 3190 (UNSTARRED), answered on 2016-12-05
Subject: Trade Agreement between India and Bhutan
Ministry: COMMERCE AND INDUSTRY
Asked by: SUDHEER GUPTA, ANANDRAO  ADSUL, KUNWAR HARIBANSH SINGH, T. RADHAKRISHNAN, GAJANAN CHANDRAKANT KIRTIKAR, VIJAY KUMAR S.R., SUNIL BALIRAM GAIKWAD, VINAYAK BHAURAO RAUT, DHARMENDRA YADAV, BIDYUT BARAN MAHATO, ASHOK SHANKARRAO CHAVAN, PRITAM GOPINATH MUNDE

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 3190

## TO BE ANSWERED ON 05 th  DECEMBER, 2016

## TRADE AGREEMENT BETWEEN INDIA AND BHUTAN

## 3190. SHRI SUDHEER GUPTA:

SHRI ANANDRAO ADSUL:

KUNWAR HARIBANSH SINGH:

SHRI T. RADHAKRISHNAN:

SHRI GAJANAN KIRTIKAR:

SHRI S.R. VIJAYAKUMAR:

DR. SUNIL BALIRAM GAIKWAD:

SHRI VINAYAK BHAURAO RAUT:

SHRI DHARMENDRA YADAV:

SHRI BIDYUT BARAN MAHATO:

SHRI ASHOK SHANKARRAO CHAVAN:

DR. PRITAM GOPINATH MUNDE:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) the  details  of  the  Commodities  which  are  presently  being  traded  between  India  and Bhutan;
- (b) whether India and Bhutan have recently signed any Agreement on Trade, Commerce and Transit to enhance trade between the two countries through trade facilitation and if so, the details thereof along with its main features;
- (c) the extent to which India is likely to be benefited from the said agreement along with the extent  to  which  this  agreement  will  facilitate  improving  procedures,  cutting  down  on documentation  and  adding  additional  exit/entry  points  for  Bhutan's  trade  with  other countries; and
- (d) the time when the first agreement was signed with Bhutan indicating the number of times it was extended along with the steps taken to boost trade with Bhutan?

## ANSWER

okf.kT; ,oa m|ksx jkT; ea=h ¼Jherh fueZyk lhrkje.k½ ¼Lora= izHkkj½ THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a): In  2015-16,  the  major  commodities  exported  from  India  to  Bhutan  were petroleum products, machine tools, motor vehicles/cars,  products  of iron  and steel etc. while  the  major  imports  from  Bhutan  were  power,  iron  and  steel,  inorganic  chemicals, plastic sheet and film, alcoholic beverages etc.

(b) and (c): India  and  Bhutan  have  signed  an  Agreement  on  Trade,  Commerce and Transit on 12 th November 2016, which provides for a free trade regime between the two countries aimed at boosting the bilateral trade for mutual benefit. The Agreement also aims at facilitating Bhutan's trade with third countries through an improved procedure for containerised cargo, striving towards use of electronic means to facilitate the movement of transit cargo, additional entry/exit points in India, etc.

(d): An Agreement on Trade and Commerce between India and Bhutan was first signed on 17 th January, 1972. Since then, the Agreement has been renewed/revised five times, including the agreement signed on 12 th November 2016.

The Government continues to engage proactively  with  Bhutan  to  strengthen  trade  and economic relations, inter-alia, through taking up the issues impacting the bilateral trade for early resolution, holding bilateral and multilateral trade discussions from time to time, efforts  for  improvement  of  trade  infrastructure  along  the  border,    providing  assistance under  Market  Access  Initiative  (MAI)  and  Market  Development  Assistance  (MDA) schemes  to  Indian  exporters,  Export  Promotion  Councils,  Apex  Trade  Bodies  etc.  for participation in events in foreign countries, including Bhutan, etc.