The Union Cabinet on Thursday approved a new free trade agreement between India and Bhutan, which also provides for duty-free transit of Bhutanese merchandise for export to third countries.
"Trade relations between India and Bhutan are governed by an Agreement on Trade, Commerce and Transit," a Commerce Ministry statement said here.
"The agreement provides for free trade regime between the two countries. The agreement also provides for duty-free transit of Bhutanese merchandise for trade with third countries," it said.
The agreement was renewed in July 2006 for a period of 10 years.
The validity of the agreement was extended with effect from July 29, 2016, for a period of one year or till the new agreement comes into force through the exchange of diplomatic notes, the statement added.
--IANS
bc/tsb/dg
Disclaimer: No Business Standard Journalist was involved in creation of this content