As Assam hosted Advantage Assam 2 recently, Assam Chief Minister (CM), Himanta Biswa Sarma announced that Bhutan has expressed interest to establish a Special Economic Zone (SEZ) near Jogighopa. While the Assam CM did not mention any additional details, economists in Bhutan say this request for a SEZ in Assam, near the Jogighopa waterway, marks a strategic move that could provide tremendous benefits for the country’s economic development. This proposed SEZ would serve as a gateway for Bhutan to expand its trade and industrial capacity, unlocking new avenues for growth and positioning Bhutan as an important regional economic player.
A senior economist in Bhutan said one of the primary benefits of an SEZ near Jogighopa would be its ability to boost trade. “The zone would offer Bhutan a favorable environment for attracting Foreign Direct Investment (FDI), which is essential for the country’s goal of achieving a USD 5 billion economy by 2029. By establishing a business-friendly regulatory framework within the SEZ, Bhutan could attract international investors seeking a strategic location for manufacturing and export.”
According to him, the SEZ would also make it easier for Bhutanese businesses to engage in cross-border trade with India and other South Asian nations. “This region is already a key transit hub, and an SEZ would further enhance Bhutan’s access to Indian markets, where demand for goods, services, and raw materials is constantly growing.”
Highlighting that the benefits are not related to Gelephu Mindfulness City (GMC) only, he mentioned that the proximity of the SEZ to the Jogighopa waterway would cut logistical costs significantly. “As an efficient transport route, the waterway would allow for cheaper import and export of goods. Bhutanese industries could easily access Indian ports, including Kolkata and Haldia, while also reducing shipping and transportation costs for exports such as agricultural products, handicrafts, and minerals.”
A senior civil servant said the SEZ would likely spur the development of state-of-the-art infrastructure within Bhutan, including industrial parks, transportation hubs, and energy-efficient facilities. “It would also benefit from the existing infrastructure in Assam, creating synergies with railways, roads, and port connectivity, which are essential for the smooth operation of any economic zone.”
He added that the SEZ would provide Bhutan with a platform for technology and knowledge transfer, which is crucial for the country’s digital transformation. Foreign companies operating in the SEZ could bring in advanced technologies, while Bhutanese companies could learn from global best practices. This would be especially beneficial for sectors like fintech, ICT, and digital services, helping Bhutan position itself as a regional leader in knowledge-based industries.
“Additionally, the SEZ could facilitate skills development for Bhutanese workers, enhancing their technical expertise and employability. By providing access to training programs, education initiatives, and partnerships with universities, the SEZ could help build a highly skilled workforce that is essential for the success of emerging industries.”
Other benefits include the SEZ serving as a catalyst for job creation, particularly in sectors such as manufacturing, technology, agribusiness, and logistics. It would foster the development of industries that support Bhutan’s economic diversification beyond its traditional reliance on hydropower. The zone would offer local employment opportunities, particularly for youth and women, contributing to reducing unemployment rates and improving living standards in Bhutan’s border regions.
“Additionally, the SEZ would create a stronger private sector, as it would encourage the growth of small and medium enterprises (SMEs), which are essential for the country’s long-term economic sustainability. By providing access to capital, tax incentives, and streamlined regulations, the SEZ would support the growth of Bhutanese businesses, helping them scale up operations and integrate into regional and global value chains.”
The establishment of an SEZ near Jogighopa would strengthen Bhutan’s economic integration with India and other neighboring countries. It would foster regional cooperation, making Bhutan a key player in South Asia’s economic landscape. The SEZ could also support Bhutan’s efforts to be part of regional trade agreements and initiatives such as BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and SAFTA (South Asian Free Trade Area), helping the country expand its trade relationships and regional influence.
Meanwhile, the opening of the Jogighopa waterway will be a transformational development for Bhutan, significantly enhancing trade, connectivity, and economic growth. As a landlocked country, Bhutan relies heavily on road transport and limited air freight for its imports and exports. The Jogighopa waterway in Assam, India, will provide Bhutan with a vital alternative transport route, reducing logistical costs, transit times, and dependency on overland routes.
Furthermore, improved waterway access could boost tourism, allowing river cruises and eco-tourism initiatives along the Brahmaputra basin, attracting international visitors. With sustainable infrastructure development and effective policy implementation, the Jogighopa waterway has the potential to be a game-changer for Bhutan’s economic growth, trade diversification, and regional integration.
A state-of-the-art waterways terminal at Assam’s Jogighopa, a strategic town on the northern bank of Brahmaputra that will boost trade between India, Bhutan and Bangladesh, opened by Union shipping minister Sarbananda Sonowal is part of the PM Gati Shakti Master Plan.
Meanwhile, the Assam CM told Indian media recently that the Assam government has prioritised the development of a special economic zone (SEZ) in the state near its border with Bhutan. The SEZ will allow the state government to reap benefits of the Gelephu Mindfulness City (GMC) project in the neighbouring country. The CM said work is already underway for improving connectivity to Gelephu from Assam, including through rail and road networks.
“I witnessed the enthusiasm among the people of Bhutan about GMC when I visited the country recently. Our Prime Minister Narendra Modi ji has also pledged support for the project and the Assam government is also committed to it,” the CM said.
“In Assam, we are deliberating on how we can collaborate so that the prosperity of GMC can be shared by our people as well,” the CM said, adding that the multi-modal logistics park at Jogighopa, located around 90 km from Gelephu, will play a big role for GMC as it will be the nearest port.
“A SEZ, subject to clearance of Government of India, is our high priority. The GMC is about mindfulness, so we want to take benefit of the industrial investment that will come with it,” the CM maintained.
Tashi Namgyal from Thimphu
