India Bangladesh Trade:
- India Bangladesh Trade, Bangladesh is the largest trade partner for India in South Asia and the fourth largest destination for India Bangladesh Trade exports worldwide in 2021-22.
- Exports: In India Bangladesh Trade, Exports to Bangladesh rose by more than 66 per cent from $9.69 billion in FY 2020-21 to $16.15 billion in FY 2021-22.
- In India Bangladesh Trade Main exports to Bangladesh are raw cotton, non-retail pure cotton yarn, and electricity.
- Imports: India Bangladesh Trade, Bangladesh second biggest trade partner, and the largest export market in Asia.
- Main imports from the country are pure vegetable oils, non-knit men’s suits, and textile scraps.
India Bangladesh Trade: CEPA
- The CEPA will be focusing on trade in goods, services, and investment, with a key objective of reducing the trade gap between the two countries.
- Importance for Bangladesh: Bangladesh will graduate into a developing country by 2026 and will no longer qualify for trade benefits that it currently enjoys as a least-developed country.
- Having a comprehensive trade agreement with major countries is very critical for its growth.
India Bangladesh Trade: Existing Framework
- Bilateral Trade Agreement: India Bangladesh Trade agreement was renewed in 2015 for a period of five years with a provision for auto renewal.
- South Asian Free Trade Area (SAFTA): India Bangladesh Trade, Bangladesh offers preferential tariffs to Indian exports of products apart from those in ‘sensitive list’ of 993 items.
- India in 2011 announced duty-free, quota-free access to Bangladesh for all tariff lines except tobacco and alcohol.
- Protocol on Inland Waterways Trade and Transit (PIWTT): It will facilitate trade and transit through inland waterways.
- The protocol ensures movement of goods by barges/ vessels on eight routes between India and Bangladesh, as well as between points in India through Bangladesh for increasing India Bangladesh Trade .
- Memorandum of Understanding (MoU) on Coastal Shipping: MoUs were signed in 2015 on the use of the Chittagong and Mongla Ports for Movement of Goods to and from India. It concerns direct sea movement of containerized/ bulk/ dry cargo.
- This reduces the shipping time between India and Bangladesh from 30-40 days to 7-10 days.
- Border Haats: The MoU on Border Haats was renewed in April 2017. Currently, four Border Haats — two each in Meghalaya (Kalaichar and Balat) and Tripura (Srinagar and Kamalasagar) — are functional.
- There are plans to set up two more haats on the Tripura-Bangladesh border and four on the Meghalaya-Bangladesh border is under way.
India Bangladesh Trade: Important Agreements During Bangladesh’s PM Visit
- River water sharing: India and Bangladesh have signed an interim water sharing agreement for the Kushiyara river. This was first such agreement in last 25 years.
- The signing of Kushiyara river sharing pact will benefit people in southern Assam and Sylhet in Bangladesh.
- Mujib scholarship: Bangladesh has announced Mujib scholarship for the direct descendants of the Indian soldiers killed or grievously injured in the 1971 Bangladesh Liberation War.
- Kushiyara is a distributory of the Barak river and forms a part of India-Bangladesh border.
- The river is formed when Barak river divides into Kushiyara and Surma.
- Kushiyara rejoins Surma in Bangladesh to form the Meghna river.