ShodhPatra: International Journal of Science and Humanities

A Study on India’s Trade Relation with SAFTA Members: Indo-Bhutan Trade as a Case

India took an active role in the South Asian Free Trade Area (SAFTA) due to its prosperity. The countries that make up SAFTA—Bangladesh, Sri Lanka, Afghanistan, Nepal, the nation of Pakistan, the Maldives, the nation of Bhutan, plus India—agreed during the 12th SAARC summit in Islamabad on the 6th of January 2004. It created an area of free movement for the roughly 1.8 billion individuals living in the area. Seven foreign ministers in the region signed to the SAFTA concept agreement, which calls for lowering tariffs to zero by 2016. There is a great deal of speculation about its beneficial effects on intraregional trade. Being the biggest and most advanced exporter of the SAARC countries, India is required to take the initiative to expand South Asia's regional monetary ties. This study looks at India's foreign policy approaches towards its neighbour, Bhutan, in light of the current conflicts with China, Pakistan, India, and Bangladeshi. One of the biggest unbalanced regional agreements in the world is probably this one. As a result, this research project looks at India-Bhutan relations from 2007 to the present. Additionally, the report emphasises India's commerce and its connection with Bhutan in particular, as well as with other SAFTA members in general. In order to comprehend the diplomatic links connecting two countries in a more comprehensive manner, this article also analyses the trade relationship entre India as well as Bhutan using the research methodologies of trade transparency along with trade intensity.