(Image source from: dnaindia.com)

India and Bhutan launched “Jaigaon-Ahllay” trade route to boost connectivity between the two countries.

India is the largest trading partner for Bhutan. On Wednesday, the two neighbors have decided to widen their connectivity and opened a new land trade route that will link West Bengal’s Jaigaon and Ahllay in Bhutan.

This new route will enable smoother trade of goods between the two countries and strengthen the cooperation amid Chinese in-roads into south-east Asia.

Bhutan is a key buffer between India and China and plays a key role in enhancing the security of India.

Indian Envoy to Bhutan, Ruchira Kamboj called this move a ‘step forward’ and said it would further strengthen the special relationship between India and Bhutan in these tough COVID-19 times.

The access to Ahllay in Bhutan will facilitate trade and commerce between the two countries and will also decongest vehicular traffic along Jaigaon and Phuentsholing route.

The new trade route will be specifically beneficial for the movement of heavy vehicles like trucks and raw materials from India to Bhutan.

The bilateral trade between India and Bhutan stands at Rs. 9227 crores as in 2018.

Bhutan imports raw materials, machinery, mechanical appliances, vehicles, vegetable products, plastics, base metals, electrical equipments, mineral products and other materials from its neighbor India. In return, Bhutan exports to India materials like Portland cement, dolomite, timber, wood products, potatoes, fruit products and cardamom.

A land customs station has been opened by India at Ahllay, Pasakha upon the request of Bhutanese authorities as a part of the new land route.

The opening of the new land route comes as a result of signing of the concession agreement for 600- MW joint venture of hydro electric project in Bhutan. Hydro power sector is the flag ship between India and Bhutan.

The project will be implemented by Kholongchhu Hydro Energy Limited, a joint venture company formed between Druk green Power Corporation of Bhutan and Satluj Jal Vidyut Nigam of India. The signing of this concession agreement will lead to the commencement of hydro electric project between the two countries which is expected to be finished by 2025.

By Gayatri Yellayi