India and Bhutan have a free trade regime: goods move duty-free both ways and trade is settled in Indian rupees (at par with the ngultrum). The current version, signed in November 2016, took effect on 29 July 2017 for ten years; India accounts for over 80% of Bhutan's trade.
- Free trade regime between India and Bhutan; duty-free transit for Bhutan's trade with third countries
- Trade in Indian rupees, at par with the Bhutanese ngultrum
- Bilateral trade grew from USD 484 million (2014) to USD 1,777 million (2024-25)
- First signed in 1972; current agreement valid 10 years from 29 July 2017
- How to claim
- DGFT's Appendix 2A lists an issuing agency for the Bhutan agreement; ask your buyer whether Bhutanese customs need a certificate of origin for your goods.
Sources · checked 30 Sep 2026: Embassy of India, Thimphu – India-Bhutan trade relations · GKToday – India-Bhutan new trade and transit agreement comes into force · Rajya Sabha answer on FTAs, 20 March 2026 (mirror)
The SAARC free trade area gives Indian goods reduced duties (0–5% after phase-down) in other South Asian countries, except items on each country's sensitive list. In practice trade with Pakistan is shut: Pakistan suspended bilateral trade in August 2019, and India banned all direct and indirect imports from Pakistan from 4 May 2025.
- Non-LDC members (India, Pakistan, Sri Lanka) were to cut tariffs to 0–5%; LDC members (Bangladesh, Bhutan, Maldives, Nepal, Afghanistan) over a longer period
- Each member keeps a sensitive (negative) list excluded from concessions
- Afghanistan joined in 2007
- Pakistan: no usable preferential trade — Pakistan suspended trade with India in Aug 2019; India banned imports and transit of Pakistani goods from 4 May 2025
- Rules of origin
- Change of tariff heading (4-digit) plus at least 40% domestic value content (30% for LDC exporters); product-specific rules for 191 lines.
- How to claim
- SAFTA Certificate of Origin, issued by authorised Indian agencies; apply on DGFT's Trade Connect eCoO platform (www.trade.gov.in).
Sources · checked 30 Sep 2026: APEDA AgriExchange – SAFTA ready reckoner · Rajya Sabha answer on FTAs, 20 March 2026 (mirror) · The Tribune – India bans imports from Pakistan, suspends shipping and postal links (May 2025) · DGFT – Appendix 2A: agencies authorised to issue CoO under FTAs/PTAs