Indo-Bangla trade crosses $5b mark
Brahmanbaria volume between Bangladesh and India has improved significantly and crossed $ 5 billion mark recently.
Though a large portion of the benefit still tilted in favour of India, but Bangladesh export to India has increased manifold.
Bangladesh exported goods worth $512.5 million to India in 2010-11, posting a 68-percent rise compared to the previous year. Indian export to Bangladesh stood at $4586.8 million in the same period, 43 percent up from the previous year.
India’s biggest export destination is Bangladesh.
Bangladesh mainly exports raw jute, jute goods, fish, mineral distillates, fruits, garments, copper, minerals, cotton waste, iron/steel and articles, knitwear, leather, ceramic, to India.
Indian export items to Bangladesh include cotton( raw, yarn, fabrics), vehicles and parts, other than rail rolling stock, animal feed/food waste, boilers, machinery/ mechanical appliances, cereals, iron and steel, organic chemicals, electrical machinery and equipment, vegetables, roots and tubes, mineral fuels/waxes/bituminous products, plastics/articles, tanning chemicals, man-made fibres, rubber/articles, coffee, tea and spices.
Under the South Asian Free Trade Area (Safta) pact, Bangladesh enjoys tariff concession from India on 480 items which can enter in Indian market with zero duty.
To minimize the trade gap between the two neighbouring countries, India recently allowed duty-free access of 46 textile items from Bangladesh.
Under “Bilateral Investment Protection and Promotion Agreement” and “Convention for Avoidance of Double Taxation” between the two countries, 225 Indian firms proposed for FDI of $558.77 as 100 percent owned or joint venture.
Given the geographical proximity, warm and friendly ties, availability of workforce and investment-friendly atmosphere, the quantum of Indian investment and trade with Bangladesh is further expected to improve for mutual benefit.