In order to ensure the effective and harmonious implementation of this agreement, both governments commit to regular consultation so that such difficulties can be resolved satisfactorily and quickly when implemented. The Royal Government of Bhutan also agrees to consult with the Indian government on its trade, economic and trade relations with foreign countries. The agreement provides for a free trade regime between the territories of India and Bhutan. The agreement also provides for duty-free transit of Bhutanese goods for trade with third countries. It was last renewed on July 29, 2006 for a ten-year period. The duration of this agreement has been extended by one year (effective July 29, 2016) or until the new agreement enters into force through the exchange of diplomatic notes. The two governments, by mutual agreement, will identify areas of cooperation and complementarity in their agricultural, industrial and commercial plans to promote Bhutan`s economic development. Bhutan imports metals, vehicles, plant products, plastics, mineral products, machinery and mechanical equipment, electrical appliances and objects from India. And it exports wood products, potatoes, cardamom and fruit products, electricity, port cement, dolomie and wood. A feasibility study for the establishment of a rail link between Mujnai (West Bengal) and Nyoenpaling (Bhutan) has already begun. Bhutan requested that Jitti-Nagrakata LCS be notified as a permanent LCS, as was reported in 2013 as a seasonal CLS for trade in three crops, namely orange, ginger and cardamom.
The two governments will jointly identify areas of cooperation and complementarity in their agricultural, industrial and commercial plans to promote Bhutan`s economic development. The volume of trade with India has continued to grow over the years and India remains Bhutan`s largest trading partner. At present, the trade balance is very favourable to India. In 2015, the total value of imports from India was not the same. The total value of exports to India (including electricity) reached 53.74 billion euros. 31.80 billion euros. This will help relocate raw materials and heavy industrial goods to the Pasakha Industrial Zone. The new agreement was signed on 12 November 2016 and, in accordance with its provisions, the pact is expected to enter into force on a date set for both parties. There will therefore be free trade and trade between the territories of the Indian government and the Royal Government of Bhutan. The bilateral meeting on trade and transit between Bhutan and India to discuss trade-related issues is held regularly between the two sides. The last trade meeting took place on 25 May 2015 in Thimphu. While it helps promote bilateral trade and trade, it will help reduce congestion along the Jaigaon-Phuentsholing line, a source confirmed to Financial Express Online.