India’s trade with B’desh could treble after FTA: Joint study | Mint

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According to the study, as a result of the pact, Bangladesh’s exports to India would see a 190.15% increase while India’s exports to Bangladesh could rise by 188.34%. (Bloomberg)

1 min read . Updated: 15 Sep 2022, 12:33 AM IST Dilasha Seth

  • The largest gains for India could be in exports of vehicles, cotton, electrical machineries and equipment, iron and steel, knitted or crocheted fabrics, and machineries and mechanical appliances

BENGALURU : A joint feasibility study before the start of talks for a free trade agreement shows that trade between India and Bangladesh could grow by three times.

The largest gains for India could be in exports of vehicles, cotton, electrical machineries and equipment, iron and steel, knitted or crocheted fabrics, and machineries and mechanical appliances.

Bangladesh could see gains in textiles and apparel, wooden furniture, parts of machinery, chocolates, inorganic chemicals, footwear and processed goods. 

According to the study, as a result of the pact, Bangladesh’s exports to India would see a 190.15% increase while India’s exports to Bangladesh could rise by 188.34%. The study, conducted by the Centre for Regional Trade (CRT), New Delhi and Bangladesh Foreign Trade Institute (BFTI), Dhaka, was jointly commissioned by the two governments. 

The report also recommends allowing investors from Bangladesh to invest in India through automated route, and easier visa regime. Besides, the legislative process of Bangladesh for the entrance of a new investor should be made easier, it said. 

The study pointed out that there exists a potential of additional export from India to Bangladesh, ranging from $4 billion to $10 billion, within 5 years. Bangladesh could see exports increase between $3 billion and $5 billion in 10 years, the report accessed by Mint showed. According to the study, the pact had the potential to increase Bangladesh’s real GDP by 1.72% and India’s by 0.03%.

India and Bangladesh had decided in October last year to start talks on a comprehensive economic partnership agreement (CEPA). 

PM Modi following a meeting with the visiting Prime Minister of Bangladesh Sheikh Hasina, said that India and Bangladesh will soon commence negotiations on CEPA.

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