INDO-BHUTAN AGRICULTURAL TRADE: TRENDS AND PROSPECTS

Purpose: This paper argues the dynamics of agricultural trade between India and Bhutan from 2003-04 to 2022-23, highlighting substantial potential for increased bilateral trade based on RCA analysis. It also points out the constraints faced by exporters in agricultural trade. Design/methodology/approach: Conventional statistical methods, such as ratios and percentages, were employed to analyze the trends in exports and imports. To find out competitiveness between countries RCA has calculated. Findings: The result showed that India dominates this trade landscape, with major exports including cereals, dairy products, and vegetable oils. Despite this dominance, there is significant potential for the further expansion of India's agricultural export market to Bhutan. The RCA for various agricultural commodities, discovered that India holds a competitive edge in several key products. Bhutan, while maintaining a comparative advantage in specific sectors, such as beverages and spices, has a less diversified export portfolio compared to India. Challenges such as SPS and TBT measures are critical considerations for exporters. Research limitation: This study primarily based on secondary sources of data, to understand the deeper understanding of trade like informal trade which occurred between border of both side and through ICT and required strategy to improve border trade a study based on field study is important. Originality/value: Although several studies have conducted on agricultural commerce, but this study updated the agricultural trade structure between India-Bhutan trade.