India Bangladesh Trade

Economic Relations and Investments

• Prime Minister Mr. Narendra Modi met Professor Muhammad Yunus, Chief Adviser of the interim government of Bangladesh, on the sidelines of the BIMSTEC Summit in Bangkok, reaffirming India’s support for a democratic, stable, peaceful, and inclusive Bangladesh. Emphasising a people-centric and pragmatic approach, the Prime Minister highlighted the tangible benefits of bilateral cooperation while calling for the avoidance of rhetoric that could vitiate ties and stressing the need for strict border management to ensure security and stability.
• The Government has allowed export of 99,150 MT of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka. Onion export prohibition has been imposed to ensure adequate domestic availability against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 as compared to previous year and increase demand in international market.
• The 15th meeting of the Joint Working Group on Trade (JWG) between India and Bangladesh took place on September 26th and 27th, 2023, in Dhaka, Bangladesh. The discussions covered a range of bilateral issues, including the elimination of port restrictions, preparations for the initiation of the Comprehensive Economic Partnership Agreement (CEPA), standard harmonization, mutual recognition of standards, the supply of essential commodities to Bangladesh, the enhancement of road and rail infrastructure, regional connectivity through multi-modal transportation, and the establishment/strengthening of infrastructure in Land Customs Stations/Integrated Check Posts, border haats, etc. On the trade front, India and Bangladesh have agreed to start the Comprehensive Economic Partnership Agreement (CEPA) at an early date. CEPA would provide a sound basis for substantial enhancement of trade and commercial partnership between the two countries, and it would also create new jobs, raise living standards, and provide wider social and economic opportunities in India and Bangladesh. The productive bilateral meeting concluded with both nations reiterating their commitment to deeper economic engagement, regional cooperation, and sustainable development.
• In April 2023, Bangladesh and India agreed to settle a part of the bilateral trade transactions in their own currencies-Rupee and Taka, to ease pressure on dollar holdings.
• NTPC marked it first overseas capacity addition by adding Unit-1 of the 1320 MW (2x660) Maitree Super Thermal Power Plant (MSTPP) located in Rampal, Mongla, Bagerhat, Bangladesh. The project was executed in collaboration with the Bangladesh-India Friendship Power Company Pvt Ltd. (BIFPCL), a foreign joint venture company of NTPC Ltd.
• Indian railways, under grant assistance from the Government of India, handed over 20 Broad Gauge (BG) diesel locomotives to Bangladesh, fulfilling an important commitment made during the visit of Hon’ble Prime Minister of Bangladesh Sheikh Hasina to India, in September 2022.
• India and Bangladesh engaged in discussions on various bilateral matters including the exploration of new land customs stations, streamlining port restrictions, advancing road and rail infrastructure, facilitating pre-arrival exchange of customs data, and deliberating on a bilateral agreement for customs cooperation during the 14th Joint Group of Customs (JGC) meeting in August 2023 in New Delhi.