India’s Directorate General of Foreign Trade issues a warning for exporters and banks to scrutinise dealings with two Bhutanese firms following unresolved trade and quality disputes, amid rising bilateral trade figures.
India’s Directorate General of Foreign Trade has warned exporters and banks to be cautious when dealing with two Bhutanese companies, Legoy Powersports and Druk A-Z Store, after unresolved trade complaints and quality disputes. The advisory, issued as notice No. 19/2026-27, urges businesses to carry out stronger checks before extending credit, arranging shipments or entering new contracts with either firm.
According to the notice, the move follows efforts to settle the disputes through diplomatic and administrative channels, but those attempts have not produced a substantive response from the companies or the relevant authorities in Bhutan. The DGFT said the lack of progress has left the matters unresolved and increased the risk for Indian traders.
The warning comes at a time when economic ties between India and Bhutan continue to grow. Whalesbook reported that two-way trade rose 8.81% to $2.07 billion in the fiscal year 2025-26, with Indian exports making up $1.25 billion of that total. The DGFT has also recently tightened other parts of its trade oversight, including curbs on direct exporter access to some officials and a separate move to create a formal process for investigating goods suspected of being made with forced labour.
While the notice does not amount to a ban, it signals that exporters, banks and agencies such as the Export Credit Guarantee Corporation should treat dealings with the two firms as higher risk. The DGFT has asked stakeholders to keep detailed records, verify counterparties carefully and report any payment problems or contract disputes without delay.
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