Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement

Bangladesh-Bhutan-India-Nepal (BBIN) – Motor Vehicle Agreement

India, Bangladesh and Nepal have finalized the “Bangladesh-Bhutan-India-Nepal” (BBIN) – Motor Vehicle Agreement (MVA) i.e. BBIN-MVA.

  • India, Bangladesh and Nepal have finalized a Memorandum of Understanding (MoU) to implement the BBIN-MVA. It may be noted that the objective of BBIN-MVA is to promote regional trade and connectivity.
  • Currently, Bhutan has distanced itself from this agreement.


  • In 2014, a regional motor vehicle agreement could not be agreed due to Pakistan’s opposition at the Kathmandu summit of SAARC (i.e., South Asian Association for Regional Cooperation). Subsequently a connectivity project named BBIN-MVA was envisaged.
  • It is a sub-regional motor vehicle agreement for the regulation of passenger, personnel and cargo-vehicle traffic.
  • This will further strengthen the facility of land based inland road transport.
  • In 2017, Bhutan failed to get approval from its parliament due to environmental concerns. After that he got out of the project temporarily.

Significance of BBIN-MVA

  • This project will help in accelerating the development of North East region of India.
  • Due to this, bilateral and regional value chains can be leveraged. As a result, investment relations will also get a boost.
  • This is expected to increase intra-regional trade within South Asia by about 60% and trade with the rest of the world by over 30%.

Implementation concerns:

  • Bhutan is unable to attend due to traffic and pollution concerns.
  • There is a lack of infrastructure especially at designated border posts.
  • Harmony between regulations and customs procedures is a major challenge.
  • A comprehensive auto insurance policy would be required for all countries involved in the agreement.

Source – The Hindu

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