Abu Sazzad :
Country’s trade gap with India stood at $ 597 crore in the last fiscal year 2014-15. During the last fiscal, country’s import from India was $652 crore while the export was only $55 crore, according to the data of Export Promotion Bureau (EPB).
Experts pointed, the trade gap with India increased in the last fiscal due to higher imports of industrial raw materials and essential commodities.
Economist M Mamun-Ur-Rashid said, India is one of the largest sources of raw materials for Bangladeshi manufacturing industries as well as essential commodities. Actually, Bangladeshi goods are facing various non-tariff barriers to enter Indian market.
Diplomatic failure is also a reason for the huge trade deficit with the neighbouring India. The non-tariff barriers and government’s lack of initiative in negotiation with the counterpart on different trade-related issues are the major obstacles to bolster export to India, he said.
Meanwhile, trade imbalance with the SAARC member countries, especially with India, is on the rise for the last couple of years because of the rising trend of imports than exports.
Former President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mir Nasir Hossain said, the trade imbalance of Bangladesh with India and the SAARC countries is increasing because of the rising trend of imports in comparison to exports.
“Our imports are increasing mainly from India that comprises various goods including raw materials, food items and machineries. At the same time, we could not boost our export to the neighboring country.”
He said that apart from having a small number of exportable items, the tariff and non-tariff barriers as well as infrastructural problems also impede country’s export to India.
The former FBCCI president mentioned that Bangladesh once enjoyed favourable trade balance with Nepal, but now it went in favour of the Himalayan country. Besides, the trade balance with Bhutan is one way as the number of Bangladesh’s exportable items to that country is insignificant.
Bangladesh could reduce the trade imbalance with the SAARC countries by boosting export of garment items, consumer goods, battery, ceramics and melamine, he mentioned.
Centre for Policy Dialogue Executive Director Mustafizur Rahman told The New Nation recently that it was a bad sign that the country’s trade deficit with India continued to rise in recent years. The trade gap with India continued to rise in recent years as Bangladesh failed to attract the Indian consumers to its products due to lack of product diversification.
“Both India and Bangladesh have common economic space. When we look at common economic space, it is a common market, common economic opportunity and common pool of resources.”
Bangladeshi businesses should export more to the Indian market of 1.2 billion people to narrow the huge bilateral trade gap between the countries, he mentioned. “The increasing trend in import from India is not a headache for the business sector but the rising trade gap is a matter of concern”, he said.
Mustafizur said, the local exporters should give more attention to diversify export products with a view to boosting country’s export to India.
The government should speed up investment for product diversification keeping the Indian market in mind to decrease the trade deficit between the two countries, he said.
Country’s trade gap with India stood at $ 597 crore in the last fiscal year 2014-15. During the last fiscal, country’s import from India was $652 crore while the export was only $55 crore, according to the data of Export Promotion Bureau (EPB).
Experts pointed, the trade gap with India increased in the last fiscal due to higher imports of industrial raw materials and essential commodities.
Economist M Mamun-Ur-Rashid said, India is one of the largest sources of raw materials for Bangladeshi manufacturing industries as well as essential commodities. Actually, Bangladeshi goods are facing various non-tariff barriers to enter Indian market.
Diplomatic failure is also a reason for the huge trade deficit with the neighbouring India. The non-tariff barriers and government’s lack of initiative in negotiation with the counterpart on different trade-related issues are the major obstacles to bolster export to India, he said.
Meanwhile, trade imbalance with the SAARC member countries, especially with India, is on the rise for the last couple of years because of the rising trend of imports than exports.
Former President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Mir Nasir Hossain said, the trade imbalance of Bangladesh with India and the SAARC countries is increasing because of the rising trend of imports in comparison to exports.
“Our imports are increasing mainly from India that comprises various goods including raw materials, food items and machineries. At the same time, we could not boost our export to the neighboring country.”
He said that apart from having a small number of exportable items, the tariff and non-tariff barriers as well as infrastructural problems also impede country’s export to India.
The former FBCCI president mentioned that Bangladesh once enjoyed favourable trade balance with Nepal, but now it went in favour of the Himalayan country. Besides, the trade balance with Bhutan is one way as the number of Bangladesh’s exportable items to that country is insignificant.
Bangladesh could reduce the trade imbalance with the SAARC countries by boosting export of garment items, consumer goods, battery, ceramics and melamine, he mentioned.
Centre for Policy Dialogue Executive Director Mustafizur Rahman told The New Nation recently that it was a bad sign that the country’s trade deficit with India continued to rise in recent years. The trade gap with India continued to rise in recent years as Bangladesh failed to attract the Indian consumers to its products due to lack of product diversification.
“Both India and Bangladesh have common economic space. When we look at common economic space, it is a common market, common economic opportunity and common pool of resources.”
Bangladeshi businesses should export more to the Indian market of 1.2 billion people to narrow the huge bilateral trade gap between the countries, he mentioned. “The increasing trend in import from India is not a headache for the business sector but the rising trade gap is a matter of concern”, he said.
Mustafizur said, the local exporters should give more attention to diversify export products with a view to boosting country’s export to India.
The government should speed up investment for product diversification keeping the Indian market in mind to decrease the trade deficit between the two countries, he said.
