India plans to give big trade benefits to Bangladesh!
Published: 09:05 PM, 10 July 2020
India is going to take a multi-pronged strategy to increase its trade and business partnership with Bangladesh. Through this, the neighboring country is going to give a big trade facility to Bangladesh. Recently, New Delhi is going to take this initiative in the context of China providing a duty-free facility for Bangladeshi products.
This information has been given in a report of the English daily Economic Times of India on Friday. According to the Indian daily, India plans to activate several connecting initiatives for the free entry of Bangladeshi products into various landlocked northeastern states and other regions.
Experts working on cross-border trade and regional connectivity told the Economic Times that major connectivity initiatives are likely to be taken on seaports, inland shipping, rail and highways. This will enable Bangladesh to connect with the markets of Bhutan and Nepal as well as India. Both the countries are taking various measures to re-establish the railways as well as other links with India and Bangladesh before 1965.
According to various sources, the decision taken last week to resume transport using the state of West Bengal, despite opposition from the Mamata Banerjee government, will help boost Bangladeshi exports to India.
Indian Foreign Minister S Jaishankar wrote a letter to Bangladesh’s Foreign Minister on Wednesday to strengthen ties, according to Economic Times.
Noting that Indian terms are more favorable than China’s in terms of trade concessions and loans, an Indian source said that a decade before China’s decision, India had granted duty-free access to several Bangladeshi products – which has helped reduce Dhaka’s trade deficit with New Delhi.
Indo-Bangladesh bilateral trade has steadily increased in the last decade. In the 2018-19 fiscal year, India’s exports to Bangladesh were $9.21 billion and imports were $1.04 billion. On the other hand, Bangladesh's trade deficit with China is increasing day by day.
Experts say India has given $8 billion in Lines of Credit (LOC) to Bangladesh in the last six years for infrastructural development in various sectors, including roads, railways, transport and ports. Bangladesh is the largest recipient of India’s flexible LOC.
According to the Economic Times, India has been assisting in various infrastructure projects including the construction of Agartala-Akhaura rail link, dredging of inland waterways and construction of India-Bangladesh Friendship Pipeline.