Categories: Economy

India Bangladesh trade agreement likely to be inked sooner than anticipated

<p>
India and Bangladesh are set to ink a comprehensive economic partnership agreement (CEPA) – a kind of a free trade deal — soon. Sources said that the contours of the prima facie deal are ready.</p>
<p>
“It will be signed very soon, sooner than we had expected,” a person familiar with the development said, adding that the draft was ready two months ago.</p>
<p>
Bangladesh, expected to graduate from the least developed countries (LDC) category by 2026, has already stepped-up efforts to protect its exports market by re-drawing its trade strategy especially with neighbouring countries including China and Sri Lanka.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/india-sends-first-coal-consignment-to-bangladesh-from-kolkata-port-99871.html">India sends first coal consignment to Bangladesh from Kolkata port</a></strong></p>
<p>
Instead of going in for long drawn multilateral trade negotiations, the Sheikh Hasina government is aggressively looking for bilateral agreements, which are relatively less time consuming.</p>
<p>
“We must keep in mind that Bangladesh has opted more for bilateral trade agreements as these are somewhat easier to chalk out. The country is already seriously looking at protecting its own exports sector, which has been one of the main pillars of the economy,” Bipul Chatterjee, Executive Director, CUTS International told India Narrative.</p>
<p>
Chatterjee added that India and Bangladesh are also in discussions to further improve connectivity in the region. “We need to look at boosting connectivity through the waterways as well as railways. While local trade used to be primarily undertaken through the water route, once effectively revived, small haul waterways can be used to increase trade in local products,” he said.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/bangladesh-needs-to-diversify-its-exports-basket-in-post-covid-phase-98230.html">Bangladesh needs to diversify its exports basket in post Covid phase</a></strong></p>
<p>
According to the Dhaka-based Daily Star, Bangladesh's new identity as a developing country indicates its strength and capacity. “A graduated country holds an improved image and branding in the global landscape. This helps to pull investors into the country. Global lending agencies feel reassured on the ability of the country to pay back loans,” it said.</p>
<p>
Meanwhile, with the rapidly changing geopolitical dynamics in the post Covid 19 world, the Narendra Modi government is also now looking at more such trade deals. Though New Delhi pulled out from the Regional Comprehensive Economic Partnership (RCEP) it has resumed talks on the possible trade deal with the European Union. Besides, it is also looking to get into an agreement with African Continental Free Trade Area (AfCFTA).</p>
<p>
<strong>Also read: <a href="https://www.india-briefing.com/news/accessing-south-asian-markets-from-indias-csaarc-free-trade-membership-other-trade-agreements-22531.html/">Accessing South Asian Markets from India’s SAARC Free Trade Membership, Preferential Trade Agreements</a></strong></p>
<p>
According to India Briefing, the economies of Nepal, Bangladesh, and Sri Lanka are closely intertwined with that of India. “The trade between India and other South Asian countries is increasing, which is advantageous for businesses from Europe, US, Australia to access markets in South Asia from India,” it said.</p>
<p>
 </p>

Mahua Venkatesh

Mahua Venkatesh specialises in covering economic trends related to India and the world along with developments in South Asia.

Recent Posts

VINBAX 2024: Vietnam-India bilateral army exercise concludes at Kaushalya Dam

The fifth edition of the historic Indo-Vietnam Joint Field Training Exercise, VINBAX-2024, successfully concluded its…

9 hours ago

India-Russia strengthen defence ties at 22nd Working Group meeting on military technical cooperation

The 22nd meeting of the India-Russia Working Group on Military technical cooperation and defence industry…

9 hours ago

“I want to have strong representation of India at World Nuclear Exhibition 2025”: Sylvie Bermann

Sylvie Bermann, President of the World Nuclear Exhibition expressed confidence in India's nuclear supply chain…

11 hours ago

PoJK: Joint Awami Action Committee protests against government following new ordinance, many injured

Joint Awami Action Committee core member Shaukat Nawaz Mir has condemned the attack of police…

11 hours ago

PM Modi meets 31 world leaders, heads of organisations during his 3-nation foreign visit

Prime Minister Narendra Modi participated in 31 Bilateral Meetings and informal interactions with global leaders…

13 hours ago

India- Australia conduct 11th Indian Air Force-Royal Australian Air Force Air Staff Talks

India and Australia conducted the 11th edition of the Indian Air Force and Royal Australian…

14 hours ago