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Bhutan - Land of Himalayan Opportunities for Indian Industry, Says CII
Jun 13, 2014

HYDRO POWER, TOURISM, FOOD PROCESSING KEY SECTORS FOR COLLABORATION

Bhutan can be a land of big opportunities for Indian industry across different infrastructure, manufacturing and services sectors, said the Confederation of Indian Industry in a press release ahead of Prime Minister Shri Narendra Modi’s visit to the Himalayan kingdom, his first overseas visit.

CII has identified the potential sectors of economic cooperation between India and Bhutan in a new report. These sectors include hydropower, agro processing, education, tourism, horticulture, ICT and ICT enabled Services, environment management and others.

During the recent visit of Bhutanese Prime Minister to India, Mr Ajay S Shriram, President, CII and Mr Chandrajit Banerjee, Director General, CII, called on him and discussed the opportunities and prospects in promoting Indian investments and enhancing trade and economic relationship between the two countries. Prime Minister Tobgay invited CII to visit Bhutan and work in the areas of Hydro Power, Agriculture, Education & Skill Building, Manufacturing, Mining and Tourism.

Bilateral trade relations between India and Bhutan has grown significantly from the level of US $ 141.86 million in 2003-04 to US $ 397.22  million in 2012-13, while India’s exports to Bhutan were US$ 233.22 million, the imports were valued at US$ 164.00 million. CII is confident that the India – Bhutan bilateral trade will double in next five years and there will quantum jump in Indian Investment in different sectors.

India and Bhutan have signed an agreement for development of joint hydropower projects in Thimphu and for implementing four hydro-electric projects totaling 2,120 MW, including the 600MW Kholongchu project, 180MW Bunakha project, 570MW Wangchu project, and 770MW Chamkarchu project.

Three hydro-electric projects in Bhutan —Chukha project (336MW); Kurichu project (60MW); Tala project (1,020 MW)— totaling 1,416 MW supply electricity to India. Three other HEPs—Punatsangchu-I project (1,200MW), Punatsangchu-II project (1,020- MW) and Mangdehchu project (720MW)—totaling 2,940 MW are scheduled to be commissioned by 2018.

Ongoing cooperation between India and Bhutan in the hydropower sector is covered under the 2006 agreement on cooperation in hydropower between the two countries and the protocol to the 2006 agreement signed in March, 2009 thereof. Under the protocol, Government of India has agreed to develop 10,000 MW of hydropower in Bhutan for export of surplus power to India by 2020.

In agro processing, the Indian diary industry can provide technical assistance and business knowledge to Bhutan’s dairy industry for markets in Bhutan and North East India. To attract investors to Bhutan, land, power and transport arrangements need to be made, suggested CII.

Bhutan offers opportunities in education such as higher secondary schools, vocational training institutes and training of teachers, according to the CII report. Long distance education channel or franchise outlets could be considered. Bhutan can also tie up with Indian universities to provide quality education through Virtual classrooms.

The CII report points out that the tourism industry is Bhutan’s highest foreign exchange earner but the inflow of Indian tourists could be increased. A joint tourism package between India and Bhutan can be developed around the theme of nature/culture tourism. Also, there is huge scope for training and skill development in the tourism sector.

Software and BPO industry are in a nascent stage in Bhutan. India can assist in technical guidance in areas like telecom infrastructure and broadband internet backbone, network management, marketing and branding, training of manpower, and others, said CII.

Horticulture, medicinal plantation and environment management could be other areas of economic cooperation, added CII. Bhutan can take the help of large Indian pharmaceutical companies in marketing and branding of their products. With increasing urbanization, there seems to be an opportunity for Indian private players, in treatment & recycling of waste and environmental audit & consultancy. Bhutan can partner with National Solid Waste Association of India (NSWAI) to identify the areas of cooperation including manpower training.

Bhutan is the first wholly organic country in the world and has taken a lead role on issues around the environment and sustainability, by adopting organic farming techniques. Organic farming has been significantly contributing towards providing quality food, and also prevention of soil erosion. India and Bhutan can collaborate in food processing sector as Bhutan is a big success story in fruit juice processing.

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