Indo-Bhutan Border Trade

Arunachal Pradesh shares a longstanding cultural and economic relationship with the Royal Kingdom of Bhutan. The Indo-Bhutan border has been a traditional corridor of exchange where people on both sides engaged in the trade of agricultural produce, livestock, handicrafts, and daily essentials. For many communities in Tawang and West Kameng districts, Bhutanese towns are often geographically closer and more accessible than Indian markets, making Bhutan an important partner in local livelihood systems.

Location and Connectivity

The Indo-Bhutan trade routes pass primarily through Tawang District, particularly the Zemithang administrative circle. Zemithang is linked to Tawang by two important roads:

Via T.G. Road – 96 km long, passing through Y-junction to Tawang.
Via Lumla Road – 48 km long, covering a total distance of 95 km from Zemithang to Tawang.

Both these routes are metalled, all-weather roads maintained by the Border Roads Organization (BRO), ensuring year-round connectivity. These routes link to trade points such as Bleething and Namstering, which are central to Indo-Bhutan commerce.

Historical and Cultural Ties

Trade intercourse between the local people of Arunachal Pradesh and Bhutan has existed since time immemorial. Shared religious, cultural, and social ties have deepened these connections:

Festivals: During events like Torgya and Gorsam in Arunachal Pradesh, thousands of Bhutanese visitors participate, while during Churtem Kora and Gombey Kora, local Arunachalis travel to Bhutan.
Religion: Both regions practice Buddhism, with monasteries acting as centers of cultural and religious convergence.
Affinity: Racial, lingual, and social similarities foster mutual trust and encourage regular interaction.

This cultural proximity has allowed trade to remain active and largely congenial, even when other border trade routes faced disruptions.

Formal Trade Framework

A major milestone in Indo-Bhutan relations was the agreement signed on 28th February 1995 between the Government of India and the Royal Government of Bhutan. The agreement identified 12 Free Trade Routes to facilitate cross-border commerce. These routes allowed local traders easier movement of goods, boosting economic opportunities in the region.

Trade Activities

Exports from India to Bhutan

The following items are commonly exported to Bhutan from Arunachal Pradesh:

Food staples: Rice, salt, mustard oil, rapeseed oil.
Household and craft items: Wooden containers, bamboo mats, ropes, furniture, carpets, wooden masks, thangka paintings, chokey (altar tables).
Processed goods: Wooden wool, handicraft products.

Imports from Bhutan to India

Goods imported from Bhutan reflect both traditional and modern demands:

Agricultural produce: Dry vegetables, millet, soybean, peanuts, oranges, red chilies.
Livestock products: Animal fats, ghee, todung (local dairy product).
Beverages: Bhutanese rum.
Precious materials: Gold, turquoise, cardamom, other gemstones.
Textiles and household goods: Blankets, woolens.

Infrastructure Development

To support the Indo-Bhutan trade corridor, the Government of Arunachal Pradesh, with 100% Central assistance under ASIDE (Assistance to States for Infrastructure Development of Exports), has undertaken several infrastructure projects. These include:

Road Construction: 1 km of formation cutting at Dongshemang to improve accessibility.
Bridges: Bailey bridge (30 m span) across the Tawangcho River for direct connectivity to trade points.
Residential Facilities: Construction of staff quarters, Type-I to Type-IV residential units, and bachelor barracks at Dongshemang and Bongkhar.
Supporting Infrastructure: Barracks, retaining walls, and maintenance works to ensure smooth functioning of trade offices and facilitation centers.

The total investment under these schemes amounts to approximately ₹195.87 lakh.

Strategic Importance of Indo-Bhutan Trade

The Indo-Bhutan trade corridor is significant for multiple reasons:

Local Livelihoods: Provides alternative markets for farmers, artisans, and traders, ensuring economic sustainability in remote regions.
Accessibility: Bhutanese markets are often more accessible for border residents compared to distant Indian towns.
Cultural Strengthening: Trade is reinforced by social and religious festivals, ensuring stability in cross-border relations.
Diplomatic Value: The sector symbolizes the friendly bilateral ties between India and Bhutan, characterized by mutual trust and cooperation.

Vision Ahead

With better infrastructure and active promotion under the Act East Policy, Indo-Bhutan trade is poised for expansion. The focus areas include:

Branding of local products like thangka paintings, handicrafts, and horticultural produce.
Enhanced logistics through upgraded bridges, storage facilities, and road connectivity.
Cross-border tourism and commerce linked to cultural festivals and monasteries.
Sustainable trade growth, ensuring fair prices and stable supplies for both sides.

The ultimate vision is to transform the Indo-Bhutan corridor into a model of border trade that combines economic opportunity with cultural harmony, reinforcing Arunachal Pradesh’s role in India’s regional integration.