We gratefully acknowledge the support provided by the Ministry of Commerce, Government of India for this study. We are also grateful to the Ministry of External Affairs, Government of India for providing support and facilitating our visit to Bhutan. The interactions held with several stakeholders during consultations in New Delhi and Thimphu provided in-depth understanding of issues related to the subject. We would especially like to thank Centre for Bhutan Studies and Bhutan Chamber of Commerce and Industry for their constant support and valuable inputs at different points in time. We convey our heartfelt thanks to Department of Trade, Department of Revenue and Customs and Department of Hydropower and Power Systems in Bhutan for sparing the time to interact with us. In particular we are deeply indebted to the traders for sharing their experiences and insights.