Located on the eastern ridges of the Himalayas, the economic core of Bhutan lies in the fertile valleys of the Lesser Himalayas, which are separated from one another by a series of high and complex interconnecting ridge. Because Bhutan is landlocked, trade and transit arrangements. with India play a critical role in its economic life. Free trade with India prevails, and India is the source of the great majority of Bhutan’s imports, which include machinery, transport equipment, base and fabricated metals, petroleum products, vegetables and other food, and textiles. Electricity is the country’s principal export, followed by copper wire and cable, calcium carbide, metal alloys, cement, and polyester yarn. Cardamom and other spices, gypsum, timber, and handicrafts also are exported, albeit on a smaller scale. Secondary trading partners, for the most part in Asia, have included Japan, Hong Kong, Bangladesh, and Singapore. Bhutan is a member of the South Asian Association for Regional Co-operation (SAARC) and participates in the South Asian Free Trade Agreement along with the other SAARC signatories.

Over the last few decades, socio-economic progress has greatly reduced the number of people below poverty line, increase in GDP per capita and improvement in living standard. There are some benefits to starting a business in Bhutan.