Home   »   Daily Current Affairs   »   India Bangladesh Trade

India Bangladesh Trade


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 CEPA
India Bangladesh Trade CEPA

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
India Bangladesh Trade

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 River:

  • 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.


Sharing is caring!

Download your free content now!


We have received your details!

We'll share General Studies Study Material on your E-mail Id.

Download your free content now!

We have already received your details!

We'll share General Studies Study Material on your E-mail Id.

Incorrect details? Fill the form again here

General Studies PDF

Thank You, Your details have been submitted we will get back to you.

Leave a comment

Your email address will not be published.