Bangladesh PM Sheikh Hasina visit to focus on small bilateral trade

Trade between India and Bangladesh has remained low and was an estimated $6.76 billion in FY16

While discussions on energy, transport and infrastructure are expected to dominate the agenda during Bangladesh Prime Minister Sheikh Hasina's visit to India, the issue of trade will remain the elephant in the room.

In spite of sharing a 4,000-km border, trade between India and neighboring Bangladesh has remained low and was an estimated $6.76 billion in FY16. 

Bangladesh was among the fastest-growing economy in the world in 2016 with about 7 per cent growth. The services sector in Bangladesh has boomed with the country being the second largest exporter of apparels in the world. While bilateral trade has grown by more than 17 per cent in the last five years, there are estimates that the trade potential is at least four times the present level, Ficci President Pankaj Patel said. 

Apart from energy and greater transport connectivity, India has also focused on Bangladesh’s abundance of rivers to strengthen economic cooperation in the ‘Blue Economy’ programme which spans exploration of hydrocarbons, marine resources and deep-sea fishing, among others.