INDIA-BANGLADESH TRADE

Bangladesh is India's biggest trading partner in the subcontinent and India is the second biggest export partner accounting for 12% of the total exports to Bangladesh. The total trade turnover in 2021-2022 touched US$18.2 billion. Exports readymade garments, jute and jute products, plastics, light engineering machinery, consumer goods from Bangladesh to India. About $2 billion dollars worth of goods are exported from Bangladesh to India. Inda’s international trade is increasing despite various uncertainties in the global economy. According to a report by the Economic Times, India’s will be around $340,000 crore by the end of the financial year. It will account for 48% of foreign trade. Ajay Srivastava, co-founder of the Global Trade Research Initiative, said on increasing the share of trade in GDP, this is a sign of the urgency with which India opened up the market to the world. Bangladesh is India’s fifth largest export destination. Although Bangladesh has a much smaller economy than India, it imports a large amount from there. Bangladesh’s imports from India are so high due to geographical reasons. Earlier the source of Bangladesh’s imports was India, but now the biggest source of Bangladesh’s imports is China.
India’s top exporting countries are Germany, China, Singapore, USA, Netherlands and UAE. Initially, Bangladesh mainly imported food products and daily necessities from India, but now it has started importing products like raw materials and capital equipment needed for industrialization. Bangladesh is most of the imported products as raw materials for the country’s export products.
According to the data of Bangladesh Bank, in the financial year 2021 22, it imported a total of $8,916 million dollars of goods. Out of which $1,369 million dollars worth of goods were imported from India. In this current year, Bangladesh exported $199million dollars worth of goods to India. India’s total imports in 2021-22 were $92,300 crore dollars. India has been providing duty free export facility to Bangladesh since 2012. After the introduction of GST, there were different tax rates in different states, that has been resolved and now it has come under the scope of consolidation. But customs barriers still remain.
Indian Export: India’s import dependence on certain countries is increasing. India used to import 53% from the top import sources in 2012. In 2022 which increased to 58%. While India’s political relations with China have deteriorated, import dependence on China has increased, but Bangladesh is not among the top ten sources despite being India’s fifth largest trading partner. Bangladeshi researcher Mostafizur Rahman told in Prothom alo, there is a possibility to increase the export of Bangladesh. East Asian countries are taking that opportunity. Although Bangladesh can supply products to the Indian market at low prices, but Bangladesh is still not able to taken them. Foreign investment should be attracted to the economic zones of the country keeping in mind the zero duty advantage in the Indian market and the product that are in demand in the Indian market have to be produced and the Indian market cannot be captured by just readymade garments. Trade in Rupees Since the dollar crisis started last year, many have been devaluing the dollar and trying to do foreign trade in their own currency. India has discussed with Bangladesh to trade in rupees and they have even given written proposals. Now we export 200 million dollars there. We cannot buy more goods with rupees because there in no way to get rupees without export.

Comments

Post a Comment

Popular posts from this blog

India has decided to allow onion exports to Bangladesh and five other countries

As reported by a news media recently, India has decided to allow onion exports to Bangladesh and five other countries through government-to-government route on the recommendation of its Ministry of External Affairs. India is the second largest onion exporter in the world. But in December 2023, the government of India imposed a ban on onion shipments to control rising onion prices and ensure adequate availability in the market and extended it till March this year due to the upcoming national elections. India initially imposed a 40 percent tariff on onions to discourage its exports but when that move did not yield the desired results, it imposed a ban. A person familiar with the matter said that while no decision has been taken to lift the ban on onion exports outright, limited quantities of onion exports have been allowed for bilateral purposes. In addition to Bangladesh, five countries, including Nepal, Bhutan, Bahrain and Mauritius, said exports have been allowed. The Bangladesh gover...
Read more

Indonesia's state procurement agency BULOG has issued an international tender to buy about 300,000 metric tons of rice.

Indonesia's state procurement agency BULOG has issued an international tender to buy about 300,000 metric tons of rice, European traders said last Tuesday. International tenders are asking for 5% broken grade white rice. It should be available from the 2023/2024 crop year and milled no more than six months earlier. Tuesday, February 27, is the last date for registration to participate in the tender for these trading houses. The Indonesian government has allocated an additional rice import quota of 1.6 million metric tons for 2024. The latest import quota, which was above the previously approved 2 million tonnes for 2024, comes amid expectations that the country's January-March rice harvest will be lower than last year due to normal rainfall in Java - the country's main rice-growing region. A severe drought in Southeast Asia's most populous nation has reduced production of staple foods, driving up crop prices. As a result, the price of imports has to be increased. In suc...
Read more

Exports of leather goods from India will decline by 13-15 percent in the current fiscal

Chairman of the Indian Finished Leather Manufacturers and Exporters Association, K.R. Vijayan said exports of leather goods from India will decline by 13-15 per cent in the fiscal year 2023-24. But with strong winter demand for leather products in Europe, we expect a strong rebound of around 20 per cent in FY25 on account of new orders from there. Exports of finished leather were $4.87 billion in 2021-22, increasing to $5.26 billion in 2022-23, while exports in the current fiscal year 2023-24 till October were $2.81 billion, which is 13 percent lower than October of the previous fiscal. Considering the country's export growth potential and consumer base, we have set a target of $47.1 billion turnover in the footwear and leather industry by 2030, Vijayan said. Of which $33.4 billion is domestic industry turnover and the remaining $13.7 billion is export turnover. But we need innovation in both technology and advanced machines to achieve this goal. India is the second largest exporte...
Read more