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Business News/ Economy / India’s trade with B’desh could treble after FTA: Joint study
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India’s trade with B’desh could treble after FTA: Joint study

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

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)Premium
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)

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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ABOUT THE AUTHOR
Dilasha Seth
" Dilasha Seth is a journalist reporting on macroeconomic policy for the last 11 years. She writes extensively on issues including international trade, macroeconomic data, fiscal policy, and taxation. At Mint, she reports on trade deals that India is signing besides key policy decisions of the Ministry of Finance. She closely tracked and covered the transition to the goods and services tax (GST) regime in 2017 and also writes on direct tax-related issues. In the past, she has worked with Business Standard and The Economic Times. She is based in Bangalore."
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Published: 15 Sep 2022, 12:33 AM IST
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