Global Watch | India-Bhutan Brahmaputra Waterway: A New Trade Corridor

Developing inland waterways offers another opportunity to reduce bulk transport costs and strengthen cooperation between the two neighbours.

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Transport between India and Bhutan has evolved from mountain trails to modern connectivity. Before roads began to develop around 1961, travellers and traders relied mainly on walking, horses and mules. Road transport subsequently became the principal link, carrying passengers and goods by buses, cars and trucks. Established in 1961, India’s Project DANTAK continues to build and improve roads and bridges in Bhutan, while border checkpoints facilitate cross-border movement.

Air connectivity began with Drukair’s Paro–Kolkata service in 1983 and now links Paro with several Indian cities. Railway connections between Kokrajhar and Gelephu, and Banarhat and Samtse, agreed upon in September 2025, remain under implementation. Bhutan also accesses overseas markets through Indian transit routes, supported by agreements dating back to 1972. Developing inland waterways offers another opportunity to reduce bulk transport costs and strengthen cooperation between the two neighbours. Inland waterways have the potential to transform Northeast India into a major centre of regional connectivity.

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Transforming Geographical Challenges into Economic Opportunities

Bhutan’s landlocked geography has historically shaped its trade and transportation options. The country depends heavily on road connectivity through India to access international markets. Although existing routes support bilateral commerce, reliance on road transport can increase logistics costs and create vulnerabilities during disruptions caused by difficult terrain, adverse weather and infrastructure limitations.

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