India and Bhutan: Challenges and Opportunities in Cross-Border Trade
Uttam Lama
Abstract
Studying the trade interactions and engagements between India and Bhutan via various border corridors leads to an understanding of the critical role that border corridors play, particularly for landlocked nations like Bhutan. This research holds significant importance in the context of the need to promote economic cooperation and regional development between these two neighbouring countries. The primary goal of this study is to trace sustainable economic development, diplomatic relationships, and foster mutual prosperity. The central objective of this study revolves around conducting a comprehensive analysis of the diverse trade routes, infrastructure, and policies governing the movement of goods and services between India and Bhutan. Through an evaluation of the challenges and opportunities inherent in these corridors, the study seeks to identify opportunities for enhancement and optimization. Additionally, this research delves into the economic impact of trade on both nation-states, with a special emphasis on its potential for opportunity creation and income generation. Furthermore, this study places particular focus on the Jaigaon-Phuentsholing border regions, recognising their direct and indirect influence on borderland development. It also emphasizes the socio-cultural factors that shape trade interactions between India and Bhutan, underscoring the significance of cultural exchange and interpersonal connections in nurturing a conducive trade environment. Through a deeper understanding and enhancement of these trade corridors, both nation-states can aspire to achieve economic growth, elevate living standards, and ensure enduring regional stability and borderland development.