CEPA: When it comes to trade with Bangladesh, India is far behind China

China accounted for 10.2 per cent of FDI investments in Bangladesh between 2014 and 2021, India's share was 3.9 per cent

On September 6, prime minister Narendra Modi announced that India and Bangladesh would soon start negotiations on a bilateral comprehensive economic partnership agreement (CEPA). Even though informal talks have been going on between the countries since 2018, Bangladesh's prime minister gave a green signal for CEPA on August 18, ahead of her four-day visit to India.

Trade between India and Bangladesh has increased over the last few years. Still, a Business Standard analysis shows that China has made significant inroads in Bangladesh in terms of investments and trade. CEPA is expected to bridge that gap.

In 2021-22, Bangladesh was