India-Bangladesh Joint FTA Study to be Finalised Soon

08 March 2022: India and Bangladesh will soon finalize the joint study on the proposed bilateral free trade agreement (FTA), aimed to boost economic ties. The matter was discussed by two sides and agreed during the secretary level talks recently in New Delhi.

To reduce the overall logistics cost of India’s exports to Bangladesh, the two sides also agreed to put into use the railway wagons or containers by Bangladesh that currently return empty after offloading the goods.

The talks were held between Commerce Secretary BVR Subrahmanyam and Bangladesh’s Senior Secretary, Ministry of Commerce, Tapan Kanti Ghosh on March 4. Bangladesh is the 6th largest trade partner of India.

The two sides also held discussions on a host of issues including the development of railway infrastructure, port infrastructure, joint study on Comprehensive Economic Partnership Agreement (CEPA), Border Haats, regional connectivity through multi-modal transportation, harmonisation of standards, mutual recognition agreement.

Bangladesh is India’s 5th largest export destination, accounting for 3.32% of India’s total outbound shipments in 2020-21 to $10.16bn and imported $1.09 bn worth of goods in the same year. Top exports from India to Bangladesh include cotton, cereals, fuel, vehicle parts and machinery and mechanical appliances.

Bangladesh is India’s biggest trade partner in South Asia and India is the second biggest trade partner of Bangladesh.