Strategic trade routes and regional connectivity initiatives considered critical for Bhutan’s export growth and market access, particularly for southern Bhutan, continue to remain stalled. While Bangladesh has already granting access in several cases, approval is still awaited from the Government of India (GoI). These are related to the proposed trade corridor through the Golakganj and Sonarhat Land Customs Stations (LCS) and railway connectivity through the Haldibari–Chilahati route linking India and Bangladesh.
The Ministry of Industry, Commerce and Employment (MoICE) and the Ministry of Foreign Affairs and External Trade (MoFAET) informed that the proposals remain under consideration by Indian authorities, delaying Bhutan’s efforts to improve export efficiency, lower transportation costs and diversify trade routes.
The proposed trade corridor through the Golakganj and Sonarhat Land Customs Stations (LCS) is viewed as strategically important for strengthening Bhutan’s access to Bangladesh markets, particularly for southern districts. The Golakganj route lies approximately 145 kilometres from Gelephu and about 87 kilometres from Lhamoizingkha.
For Lhamoizingkha, the corridor is considered increasingly important as Bhutan’s inland water transport arrangements through Dhubri continue to face operational constraints, including limited handling capacity and navigability challenges caused by fluctuating river draft conditions. These persistent logistical challenges have reinforced the need for alternative land-based access through the Golakganj–Sonarhat corridor.
“Following negotiations, the Government of Bangladesh has approved the use of Sonarhat LCS for Bhutan while the matter is pending with the GoI,” the ministries stated.
The issue was formally raised during the Commerce Secretary Level Meeting (CSLM) between Bhutan and India held in September 2024.
The ministries sated that the Indian side indicated the route could be considered after repairs to the connecting road and bridge infrastructure between Golakganj and Sonarhat are completed.
“India agreed to prioritize the matter with all stakeholders,” the response stated.
On March 5 this year, Indian authorities reportedly informed Bhutan that the Assam State Government was still consulting stakeholders regarding the proposed route.
India has also conveyed that infrastructure at Golakganj was originally not designed to handle transit trade involving multiple countries, requiring broader consultations before clearance can be granted.
Bhutan has meanwhile requested India to convene the next CSLM, which India is scheduled to host, although dates for the meeting have yet to be confirmed.
Concerning the long-pending railway connectivity through the Haldibari–Chilahati route linking India and Bangladesh, the Council noted that railway infrastructure on both sides of the Indo-Bangladesh border has already been completed and that the route could substantially reduce congestion currently faced at the Changrabandha and Fulbari border points. Operationalization of the route for Bhutan could significantly boost exports from Samtse and Phuentsholing, with the potential movement of up to 500 to 600 trucks daily.
It would lower transportation costs for Bhutanese exports, particularly stone aggregates and industrial materials destined for Bangladesh. Export consignments loaded from Indian railway stations such as Hashimara could move directly through Chilahati into major Bangladeshi commercial centres, including Dhaka.
MoICE and MoFAET confirmed that Bangladesh has already approved Bhutan’s use of the Chilahati rail route, while India’s notification remains pending.
“The matter has been taken up with the GoI since 2021,” the ministries stated.
During the 2024 CSLM meeting, Indian authorities reportedly informed Bhutan that the proposal was undergoing inter-ministerial consultations and assured an early resolution.
However, Bhutan has yet to receive final notification allowing operational use of the route.
“The GoI side informed on 05 March 2026 that the notification for the Haldibari-Chilahati rail route is under consideration,” the response stated.
The NC also highlighted concerns over Suvidha charges imposed on Bhutanese consignments transiting through Changrabandha and Fulbari in West Bengal. This requires transporters to obtain booking slots and pay service charges before cargo movement through the border routes.
The Bhutan Exporters Association (BEA) is responsible for operating the Suvidha portal in Bhutan, while an Indian bank account has been opened to facilitate payments.
The issue reportedly escalated following protests in Fulbari in December 2024 by local Indian transport groups demanding equal treatment for Indian and Bhutanese trucks entering Bangladesh.
“The request to resolve the Suvidha charges needs to be taken up politically with the Government of West Bengal,” the ministries stated.
The NC further called for resolution of toll fee penalties imposed on Bhutanese vehicles travelling on highways in Assam and West Bengal without FASTag systems.
MoFAET stated that discussions are ongoing with India regarding the issuance of FASTag facilities to Bhutanese vehicles.
The two governments have agreed in principle to appoint the Bank of Bhutan as the issuing authority, with the Bhutan Construction and Transport Authority serving as the channel partner. Indian authorities informed Bhutan that this would mark the first time India extends FASTag services to another country, requiring additional internal consultations.
Meanwhile, Bhutan’s efforts to finalize a Mutual Recognition Agreement with India for conformity assessments also remain pending. This is expected to facilitate smoother trade by enabling mutual acceptance of standards and certification systems between the two countries.
MoICE stated that the initiative had to be dropped from its key deliverables due to what it described as “non-responsiveness” from the Indian side. The matter would again be tabled during the next Commerce Secretary Level Meeting between Bhutan and India.
The above updates were made by the ministries to recommendations made by the Council during its 36th session review of key economic sectors.
Tashi Namgyal, Thimphu
