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What is the News?
Bangladesh may become India’s fourth-largest export destination in the Financial year 2021-22.
India’s Exports to Bangladesh
During April-October 2021, India’s exports to Bangladesh grew 81% over the same period last year.
This makes Bangladesh India’s fourth-largest export market behind the US, UAE and China.
The major items exported to Bangladesh by India include cotton, cereals, electricity and fuel, vehicle parts and machinery and mechanical appliances.
What is the reason for the increase in India’s exports to Bangladesh?
Bangladesh has been an economic miracle in South Asia with its unprecedented transformation over the past decade.
The growth in Bangladesh largely stems from its success as an exporter of garments, which account for around 80% of its total exports. Remittances from the overseas amount to over 6% of GDP.
|Must read: Recent developments in India-Bangladesh relations-Explained, pointwise|
What are the future prospects of India-Bangladesh Trade?
Firstly, India and Bangladesh are currently undertaking a joint study on the prospects of entering into a bilateral Comprehensive Economic Partnership Agreement(CEPA).
Secondly, the India-Bangladesh CEO Forum which was launched in 2020 to provide policy-level inputs in various areas of trade and investment and facilitate exchanges among business communities is expected to meet soon to further deepen trade and economic ties.
Thirdly, during a recent virtual summit, Indian and Bangladesh PM’s emphasised the need to address issues of non-tariff barriers and trade facilitation. These include port restrictions, procedural bottlenecks and quarantine restrictions.
|Read more: Bangladesh – Model or Miracle?|
Source: This post is based on the article ‘Bangladesh may become India’s fourth largest export destination in FY22’ published in Business Standard on 28th Dec 2021.