India and Bhutan reaffirmed their trade and economic partnership at the 7th Joint Group of Customs meeting held in Munnar on 20–21 April 2026. The meeting focused on customs cooperation, trade facilitation, border management, and measures to improve the movement of goods across the India-Bhutan border. It also underlined the strategic importance of customs systems for a landlocked neighbour such as Bhutan.
Key Bilateral Trade Context
India remains Bhutan’s largest trading partner and accounts for nearly 80% of its total trade. Bilateral trade crossed $1.9 billion in FY 2024–25, marking growth of over 46% from the previous year. The rise reflects stronger connectivity, expanding commerce, and improved customs coordination between the two countries.
Border and Customs Cooperation
The Joint Group of Customs serves as an institutional mechanism for addressing customs issues and border management. India and Bhutan discussed:
- Coordinated border management.
- A proposed MoU on pre-arrival exchange of customs data.
- Stronger anti-smuggling measures through intelligence sharing.
- Further digitisation of customs procedures.
- Harmonisation of customs processes for smoother trade.
Role of Land Customs Stations and Transit Systems
Bhutan’s landlocked geography makes land customs stations vital for trade. There are 10 notified points along the India-Bhutan border, with six in West Bengal and four in Assam. The two sides also reviewed transit cargo movement under the Electronic Cargo Tracking System (ECTS) and discussed improvements in border infrastructure to support efficient cargo movement.
Port Visit and Maritime Enforcement
As part of the visit, the Bhutanese delegation toured Kochi Port. They were briefed on import-export operations, vessel berthing, container handling, and maritime enforcement practices. These included sea patrolling, identification of suspicious vessels and cargo, and use of communication systems such as satellite phones and the Automatic Identification System (AIS). The meeting ended with both sides reaffirming their commitment to secure, efficient, and seamless cross-border trade.
Last Modified: April 27, 2026