India Bangladesh Trade
India Bangladesh Trade Agreement
Last updated: Sep, 2023
Introduction
India and Bangladesh share bonds of history, language, culture, and a multitude of other commonalities. The relationship between the two nations goes far beyond a strategic partnership. India was one of the first countries to recognize Bangladesh and establish diplomatic relations immediately after its independence in December 1971. The excellent bilateral ties reflect a strong partnership based on equality, trust, sovereignty, and understanding.
India-Bangladesh Trade
- Bangladesh is India’s biggest trading partner in the subcontinent and India is the second biggest export partner accounting for 12% of the total exports to Bangladesh.
- The total trade turnover in FY23 touched US$ 14.22 billion.
Major exported items from India to Bangladesh with amount & quantity
- India exported 6,050 commodities to Bangladesh in FY23.
- India’s export to Bangladesh stood at US$ 12.20 billion in FY23 and US$ 16.15 billion in FY22.
- Major principal commodities exported from India to Bangladesh include other commodities (US$ 1.17 billion), followed by cotton yarn (US$ 1.02 billion), petroleum products (US$ 816 million), other cereals (US$ 556 million), and cotton fabrics, made-ups, etc. (US$ 541 million), among others in FY23.
- Exports to Bangladesh during April-May 2023 stood at US$ 1.67 billion.
Major imported items by India from Bangladesh with amount & quantity
- India imported 1,155 commodities from Bangladesh in FY23.
- India’s imports from Bangladesh stood at US$ 2.02 billion in FY23 and US$ 1.97 billion in FY22.
- Major principal commodities imported by India from Bangladesh include RMG cotton (US$ 510 million), followed by cotton fabrics, made-ups, etc. (US$ 153 million), RMG manmade fibres (US$ 142 million), spices (US$ 125 million), and jute (US$ 103 million) in FY23.
- Imports from Bangladesh during April-May 2023 stood at US$ 278 million.
Economic Relations and Investments
- Bangladesh is India’s one of the biggest development partners today. The trajectory of Indo-Bangladesh bilateral relations shows how the two countries have accrued mutual benefits. On the trade front, India and Bangladesh have agreed to start the Comprehensive Economic Partnership Agreement (CEPA) at an early date. Bangladesh’s friendly ties with India are expected to gain momentum in 2023. CEPA would provide a sound basis for substantial enhancement of trade and commercial partnership between the two countries, and it would also create new jobs, raise living standards, and provide wider social and economic opportunities in India and Bangladesh.
- Inauguration of the Swadhinata Sarak would play a pivotal role in strengthening the connectivity via road infrastructure. Swadhinata Sarak stands emblematic of growing fraternal ties between India and Bangladesh—ties that go beyond fulfilling strategic interests.
- The Maitree Thermal Power project is also slated for a joint inauguration by the countries’ Prime Ministers. This project will strengthen the emerging domain of energy security in India-Bangladesh bilateral ties, in addition to the already existing and highly significant domains of trade, connectivity, and water sharing that have come to define India and Bangladesh’s bilateral relationship over the years.
- In April 20223, Bangladesh and India agreed to settle a part of the bilateral trade transactions in their own currencies-Rupee and Taka, to ease pressure on dollar holdings.
Recent Trends & developments
- MoU between the Ministry of Jal Shakti, Government of India, and Ministry of Water Resources, Government of Bangladesh on the withdrawal of water by India and Bangladesh from Common Border River Kushiyara.
- MoU between the Ministry of Railways, Government of India, and the Ministry of Railways, Government of Bangladesh on the training of Bangladesh railway personnel in India.
- MoU between the Ministry of Railways, Government of India, and the Ministry of Railways, Government of Bangladesh on collaboration in IT systems such as FOIS and other IT applications for Bangladesh Railway.
- MoU on scientific and technological cooperation between the Council for Scientific & Industrial Research (CSIR), India, and the Council of Scientific & Industrial Research (BCSIR), Bangladesh.
- MoU on cooperation in the areas of space technology between NewSpace India Limited and Bangladesh Satellite Company Limited.
- MoU between Prasar Bharti and Bangladesh Television (BTV) on cooperation in broadcasting.
- MoU between the National Judicial Academy, India, and the Supreme Court of Bangladesh on Training and Capacity Building Programme for Bangladesh Judicial Officers in India.
Conclusion
The multi-dimensional cooperation between the two countries ranges from traditional tourism, health, and education sectors to frontier technologies of nuclear science, space, and information technology. Bangladesh is the largest source of foreign tourists. The two countries are looking forward to collaborating in new areas of cooperation, such as the environment, climate change, cyber security, ICT, space technology, green energy, and the blue economy.
Contacts
- High Commission India, Bangladesh
Address: Plot No: 1-3, Park Road, Baridhara, Dhaka 1212,
Telephone: +00880-2-55067647
Officials
Mr. Pranay Verma – High Commissioner
Contact: +880-2-55067310
Email: hc.dhaka@mea.gov.in
Dr. Binoy George - Deputy High Commissioner
Contact: +880-2-55067312
Email: dhc.dhaka@mea.gov.in - Embassy of Bangladesh, India
Address: EP-39, S Radhakrishna Marg, Chanakyapuri, New Delhi, Delhi 110021
Telephone: +011 4600 0800
Email: mission.newdelhi@mofa.gov.bd
Officials
H. E. Mr. Md. Mustafizur Rahman (High Commissioner)
Mr. Md. Nural Islam (Deputy High Commissioner)
Dr. A.K.M. Atiqul Haque (Minister (Commerce)
Partners
