Notwithstanding the fact that Bangladesh’s volume of business with its neighbour India is on the rise, the trade gap with the latter is rather significant and on the rise, which is a matter of concern for Bangladesh’s economy, claimed experts who have held factors such as diplomatic failure, poor infrastructure and non-tariff barrier, as the major reasons behind the widening trade gap with India, as per media reports.
Interacting with the media, the President of Bangladesh’s apex garment makers’ body, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Dr. Rubana Huq while underlining that Bangladesh was conducting around 10 per cent international trade with India reportedly maintained that India was gaining more than Bangladesh in mutual trade and there lies a significant trade gap.
The BGMEA President as such called for implementation of the South Asian Free Trade Area (SAFTA) treaty, providing open economy facility while holding the so-called non-tariff barriers as one of the major reasons behind this increasing trade gap.
Meanwhile, Distinguished Fellow of Centre for Policy Dialogue (CPD), Dr. Mustafizur Rahman while underlining that higher imports from India – India is one of the largest sources of raw materials for industries in Bangladesh, including the readymade garment sector — was one of the main reasons behind the trade gap, maintained Bangladesh’s trade deficit with India has continued to rise in recent years, which is not a good sign for the country (Bangladesh).
As per Bangladesh’s Export Promotion Bureau (EPB), in fiscal year 2019-20, export to India stood at US $ 1,248.10 million, while import from India was US $ 7,647.50 million.
Bangladesh’s trade gap with India in fiscal year 2019-20, as such stood at US $ 6,399.40 million, as per the EPB figures.
