India-Bangladesh Bilateral Trade: Problems and Prospects.

Abstract

With the start of a new phase in Indo-Bangladesh relations, which has put the bilateral relations on an upswing, it is only natural that both sides should try to give a boost to bilateral trade. Though the bilateral trade is also not problem free, the issues involved are far easier to resolve than many others. At the same time, closer economic ties could also help in resolving other bilateral issues. There is significant bilateral trade between India and Bangladesh. India an emerging economic powerhouse caters too many of the needs of Bangladesh. But this has also skewed the balance of trade in favour of India. The imports of Bangladesh are far more than its exports. What is more significant is that even the large volume of informal trade that exists between the two countries is dominated by India. The resultant trade deficit has led to complaints from Bangladesh. Now, it is expected that Narendra Modi’s government will not only resolve the pending issues but also enhance the relationship with Bangladesh.

Key Words: Trade Agreement, Trade Deficit, Tariff and Non-tariff Barriers, Informal and Illegal Trade, Weak Economic Ties, Connectivity and Transit.