Bangladesh’s trade deficit with India still stands at around $5bn despite the opening up of duty- and quota-free access for Bangladeshi items.
One-sided non-tariff and para-tariff barriers are hugely hindering the ability of Bangladeshi businesses to export to India.
The Indian government needs to take more action to lower non-tariff barriers at customs points in the interests of both countries’ economies.
Officially, India imports goods worth $450 million against exports of over $5.5 billion to Bangladesh. It is clear that poor connectivity, red-tape and bottlenecks at customs are unnecessarily denying major opportunities to Bangladeshi exporters and investors.
As prominent members of Saarc, our two countries should be leading the way in lowering non-tariff barriers by for example, standardising certification and duty requirements and allowing mutual recognition of testing certificates for exports.
Both nations would benefit by opening up customs points for 24/7 trade. There are many potential opportunities for Bangladeshi businesses to undertake mutually beneficial joint ventures, which are currently being slowed down by weak infrastructure and the persistence of unofficial barriers.
It is encouraging that senior officials from Meghalaya and Tripura have recently been speaking in favour of joint ventures to develop their resources and hydroelectricity potential for the benefit of both countries. This augurs well for building future co-operation.
Upgrading customs points and developing faster transport infrastructure to improve connectivity should be a priority in order to make the most of the region’s potential. Bangladeshi businesses should also undertake more promotional tours across India in order to spearhead export growth.