WELCOME

TO
PRESENTATION

Presented By
Md. Zaminul Islam ID: 801311082
Shovon Saha
Md. Ashik Ikbal

ID: 801312092
ID: 801312061

S.M. Iftikhairul AlamID: 801413065

Bangladesh-India Bilateral Trade

Focus

Indicating the trend, structure and current picture of

Bangladesh-India trade.

Finding average annual growth rates of trade between

Bangladesh and India.

Finding trade benefits of two countries.

Finding trade market condition of two countries.

Policy Recommendations

Bilateral Trade Agreements (BTA)

Bilateral

trade

agreements

give

preference

to

certain countries in commercial relationships

facilitating trade and investment between the home

country and the foreign country

reducing or eliminating tariffs, import quotas, export

restraints and other trade barriers.

India-Bangladesh Bilateral
Trade Deficit
The growing bilateral trade deficit with India has
risen
$774 million in FY 2000
$1,933 million in FY 2005
$2,910 million in FY 2010.

Bangladeshs export in total import to India

about 0.2% in FY 2011

Bangladeshs import from India

about 13.2% of total import in 2011

Business performance
Year
2005-06
2007-08

Export (To
India)
$ 279.14
Million
$ 358.08
Million

Import
(From India)
$ 1,868
Million
$ 3,393
Million

Business performance (Continued..)

In 2002-2003, Bangladeshs trade deficit with
India was USD 1258.64 million while it was USD
2049.59 million in 2009-2010.
Trade deficit consistently increased because of
Indias diversified manufacturing sector which
have

high

growth

and

narrow

Bangladeshs manufacturing sector.

base

of

Constraints to Business Cooperation

Overvalued Exchange rate
Tariffs
Non-Tariff Barriers
Weak Production Structure

Impact of Free Trade

Agreement (FTA)
Beneficial Proponents:
Long term benefits would be much higher.
Entrepreneurs will be encouraged not only to raise
investment

but also set up new industries and

produce new products.

Impact of Free Trade

Agreement (Continued)
Snap of other Benefits:
Cheaper imports of raw materials that create additional
employment
Bilateral business will make goods and services globally
competitive as production cost will be lower.
Reasonable price and lower cost will increase consumer
welfare.
Investment, both foreign and local, will be encouraged.

Policy Recommendations
To neutralize the adverse effects of India favored trade
Indian restrictions on Bangladeshi normal products
should be Monitored
Promote export quality Bangladeshi products
Eliminate all non-tariff and para-tariff barriers
Small and medium enterprise (SME) sector should be
expanded to meet competitive market situation
Improvement in infrastructure should be done in a
coordinated way
Petrapole-Benapole land custom stations should work
round the clock
India -Bangladesh may sign an Investment Promotion
and Protection Agreement

Findings
Largest

single

source

for

Bangladeshs

imports
Ahead of China
Consistent trade surpluses with US and EU
Deficit with India does not led to any balance
of payments problem for Bangladesh

THANKS TO ALL