An export hub

While the internal market of Bhutan is limited in comparison to other countries it has the potential to be a production centre for products meant for the Indian market. It has several advantages which are not apparent at a first glance. A zero customs duty regime under the India Bhutan FTA, a corruption free environment, cooperative government departments, upcoming industrial estates along the Indian border areas, access to North India and North East markets, access to rich agro inputs, etc could be attractive features. Smaller companies from Japan, Europe or the US or India may find exporting from Bhutan “easier” than producing in India.

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