India’s curbs on rice exports, including the ban on broken and white rice, have led to a two million tonnes (mt) supply shortfall in the global market. With global carryover stocks projected to drop by 5-8 mt, prices of the cereal will likely be volatile, say experts and analysts. 'India’s withdrawal of supply of rice (through ban on white rice) since August 25 is 4.67 mt. Other rice exporting nations chipped with an additional supply of 2 mt in the market, leaving a demand-supply gap of 2 mt,' said S Chandrasekaran, a Delhi-based trade analyst. 

 

Despite the curbs, India will emerge as the top exporter of rice in 2023-24 (August 2023-July 2024), said the International Grains Council. 

 

Still the No. 1

'World trade is projected to contract by 2 per cent in 2024, mostly on weaker buying interest from Asian importers, most notably Indonesia. India will remain by far the biggest exporter despite another sizable fall in shipments,' the Council said.

 

The US Department of Agriculture (USDA) said India’s export restrictions have affected the region in different ways, largely dependent upon the type of rice shipped. 'Of India’s 2022 rice exports to Sub-Saharan Africa, approximately half consisted of parboiled rice (primarily shipped to West Africa). Parboiled rice remains eligible for export with a 20per cent tariff. The other half of India’s exports to Sub-Saharan Africa, white rice and broken rice, have seen a rapid decline since the 2023 export ban,' it said. 

 

Chandrasekaran said shipments from Thailand increased by 0.26 mt, from Vietnam by 1.03 mt, from Pakistan by 0.8 mt, from the US by 0.4 mt and from Brazil by 0.5 mt. 

 

Pakistan makes headway

'Pakistan has increased its exports sharply making up for what it lost in 2021 and 2022,' said VR Vidya Sagar, Director, Bulk Logix. 

 

In the 2023-24 season, Pakistan had exported 2.6 mt of rice against 1.52 mt in 2022-23, while its foreign exchange earnings nearly doubled to $1.64 billion from $840 million during the period. 

 

Globally, rice stocks are dwindling with inventories in Thailand declining by 4 mt. 'Global ending stocks are down by 8 mt,' said Chandrasekaran, adding that rice stocks in North Africa dropped to 0.6 mt from 1.2 mt in 2020-21. 

 

20% price rise since July

Sagar said that as a result of a decline in stocks, buyers are looking for other varieties of rice such as the brown variety, which is allowed at 20 per cent export duty. 

 

Per Thailand Rice Exporters’ Association data, rice prices have increased by over 20 per cent since India banned white rice exports in July 2023. 

 

Chandrasekaran said dwindling stocks in non-rice producing region and mismatch of supply will expand 'continuously'. 'The Middle-East and North Africa will witness increased volatility,' he said.

 

The USDA said, 'With global rice prices at 15-year highs, consumers may instead opt for alternative domestic food options such as roots, tubers, and domestic grains, rather than securing new rice suppliers or increasing domestic rice production.'  

 

Why curbs

The IGC said that on the basis of reduced yield expectations in Asia’s dominant growers, outweighing gains elsewhere, global rice output in 2023-24 is predicted to contract by 1 per cent year-on-year. 'As a consequence, the Council anticipates a softening of demand, while stocks are set to tighten, including in key exporters,' it said.  

 

India curbed exports to cool rising foodgrain prices and ensure domestic food security after its rice paddy crop was affected by deficient rainfall in eastern regions in 2022 and the impact of El Nino in southern India in 2023. 

 

Kharif rice production during the current crop year to June has been estimated 3.8 per cent lower at 106.31 mt against 110.51 mt last season. Though rice production in 2022-23 was projected at a record high of 135.76 mt, experts say the non-availability of rice varieties consumed by the cereal-eating population has resulted in domestic prices surging.

 

Though the Centre has taken measures to tame food inflation, rice prices have not shown signs of easing in view of shortage of key varieties such as Sona Masuri and Ponni.  

 

Vinay Bhushan Panda, a young scientist from Barakia village of Upada block in Odisha’s Balasore district, is an inspiration for all those youths in the country who are struggling to get employment after completing their studies. Instead of waiting for employment, Vinay chose to be self-reliant by taking up mushroom farming. Today, he employs over 20 people providing them the means for their livelihood.

 

After completing his MSc, MPhil, and PhD in Botany, Vinay spent some time researching and learning the intricacies of mushroom farming. Initially, he started small with Rs 1 lakh from his savings and started button mushroom farming in his backyard. As his business grew, Vijay took a loan of Rs 1 crore under the Odisha Chief Minister’s Krishi Udyog Yojana and started button mushroom farming on a larger scale.

 

Today, Vinay earns around Rs 3-4 lakh every month and is well-known across Balasore as a successful farmer. He says he gave up the idea of searching for a job and decided to take up mushroom farming while he was doing his PhD as he saw great potential in this business. 'I came in contact with some agriculture experts and was inspired to do something on my own rather than seeking a job,' says Vinay.

 

The FSSAI has decided to introduce the provision in FoSCoS for filing of Updated/Revised Annual Returns beyond the deadline of May 31.

 

Presently, FBOs [Manufacturers and Importers] are allowed to revise/update the already filed annual returns only till the last date of submission i.e., by May 31.

 

Now, the food authority has added the provision to update/revise Annual Returns in FoSCoS (Food Safety Compliance System) after May 31 to rectify inadvertent mistakes subject to conditions and fees.

 

According to the order issued by the FSSAI, in this regard, revision of annual returns is allowed maximum of two times and the last submitted annual return will be considered as final.

 

This will be allowed to those FBOs who have filed the returns within the last date i.e., May 31.

 

In this condition, the revised filing fee applicable will be based on the timeline, wherein if revised within three months i.e., by August 31 of following year: One-year licence fee + GST and if revised  beyond three months i.e., September 1 to March 31 of following year — Two-year licence fee + GST.

 

Secondly, FBOs who have filed Annual Returns beyond May 31 of following year with late fee, only one time revised/updated filing of annual returns is allowed till March 31 of the following year, with revised filing fee equal to Two year licence fee + GST.

 

And, thirdly, revised filing of Annual Returns is not allowed for the original annual returns filed beyond March 31 of the following year.

 

'The provision for filing of updated/revised return will come into effect from 06.01.2024 for Annual Returns of FY 2022-23 for which last date of submission of original return was 31st May 2023 [and extended till 30th June 2023 vide order dated 09.06.2023],' the order reads.

 

The district of Nashik has initiated its grape export season to Europe with a shipment of over 1,000 tons. The district's Agriculture Department reports that this initial consignment, consisting of approximately 76 containers of grapes, has been dispatched to the Netherlands and Romania.

 

Kailas Bhosle, vice-president of Maharashtra Rajya Draksha Bagayatdar Sangh (MRDB), anticipates that the export process will accelerate post-January 15. He clarified that the current adverse weather conditions are causing a delay in the grape harvest. However, he expects the harvest and subsequent exports to increase in late January, with February being the peak month for grape exports.

 

During the previous grape season (2022-23), Nashik exported 127,000 tons of grapes, with a significant portion (92,000 tons) going to European nations. Grape exporters predict an export figure of around 120,000 tons for this year. To export grapes, farmers are required to register their vineyards with the state agriculture department. For the 2023-24 grape season, over 28,000 farmers have registered approximately 18,600 hectares of vineyards in Nashik district for grape export.

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today chaired the second meeting of the reconstituted Board of Trade held at Bharat Mandapam, New Delhi today. Shri Goyal announced initiation of work on Trade Connect ePlatform, an intermediary platform providing the facility to connect Indian exporters and entrepreneurs with various stakeholders in international trade will commence shortly.

 

The ePlatform is expected to provide facilitation for new and aspiring exporters, information on various regulations to access markets, sectors, export trends, easy access of benefits under Free Trade Agreements, access to sector specific events along with a facility to address trade related queries to officials in Government of India and associated entities to get expert advice. The platform is likely to be ready in 3-4 months’ time period.

 

In his opening remarks, Shri Goyal said that the Board of Trade meeting is an opportunity to deliberate on the key issues including how to leverage the FTAs for our benefit, how to encourage the Startups/MSMEs to go beyond our borders and start exporting, boosting exports also from the services sector which remains a key driver of export growth from the country.

 

Shri Goyal stressed on the need to internationalise the goods and services to help in improving the quality of the products and also to have economies of scale. He further emphasied on making exports a people’s movement with the States, Centre and the Industry, all playing an equal role in accelerating Indian exports.

 

The Minister emphasised on the pro-active role to be played by the States/UTs to achieve higher exports and contribute to the nation building process. He further assured that all the issues raised by the participants will be addressed and the suggestions made by them in the meeting today will be considered by the concerned. While talking of potential in service exports, the Minister emphasised on Education, Tourism and Audio-Visual services as the areas with huge potential.

 

The Board of Trade meeting focused on reviewing the export performance to achieve the $2 trillion export target for year 2030, the priorities identified in the new Foreign Trade Policy (FTP) 2023 and the strategies and measures to be adopted in order to take forward the export growth. The reconstituted Board of Trade provides an opportunity to have regular discussions and consultations with trade and industry and advises the Government on policy measures connected with the Foreign Trade Policy in order to achieve the objectives of boosting India’s trade.

 

It provides a platform to the State governments and UTs for sharing State-oriented perspectives on exports. It also acts as a platform for the Government of India for appraising State and UTs about international developments affecting India’s trade and the role States and UTs can play in promotiong exports. It remains an important mechanism for deliberations on trade related issues with Industry bodies, Associations, Export Promotion Councils, and State/UT governments. The 29 non-official members were also invited for the Board of Trade meeting.

 

During the Board of Trade meeting, presentations were made on a variety of subjects such as India’s Import/ Export Performance and State export performance, PM Gati Shakti National Master Plan Multimodal Connectivity, Leveraging FTAs for boosting export growth, discussion on foreign trade vision, trade facilitation measures undertaken by customs, Convergence and expansion of Government e-Marketplace, reforms in Indian patent system, Intervention to boost Pharma exports etc.

 

Ministers from the States made interventions in the meeting, giving their State-specific suggestions, and also expressed their commitment to creating a favorable ecosystem in promoting the external trade.

 

The meeting saw the participation of Minister of State for Commerce and Industry, Ms. Anupriya Patel, Commerce Secretary, Shri Sunil Barthwal, Special Secretary, Logistics Smt. Sumita Dawra, Director General of Foreign Trade, Shri Santosh Sarangi and other senior officials and members of Indian Industry.

 

The meeting was attended by various State Ministers and other senior officials of key line ministries and States, all major trade and industry bodies, Export Promotion Councils and industry associations.

Union commerce minister Piyush Goyal on Tuesday said the government will launch an ePlatform ‘Trade Connect’ for Indian exporters to connect with various stakeholders in international trade by May this year, which will be one of the facilitators in achieving the $2 trillion export target by 2030.

 

Goyal announced initiation of work on the Trade Connect ePlatform, an intermediary platform, during the second meeting of the reconstituted Board of Trade (BOT) held at the Bharat Mandapam in New Delhi.

 

BOT, constituted by merging the Council for Trade Development and Promotion with it, advises the government on policy measures connected with trade. Its first meeting was held on September 13, 2022.

 

The ePlatform is expected to provide facilitation for new and aspiring exporters, information on various regulations to access markets, sectors, export trends, easy access of benefits under Free Trade Agreements (FTAs), access to sector specific events along with a facility to address trade related queries to government officials and associated entities to get expert advice. The platform is likely to be ready in three-four months’ time period, he said.

 

BOT meeting is an opportunity to deliberate on the key issues including how to leverage the FTAs for our benefit, how to encourage the startups and micro, small and medium enterprises (MSMEs) to go beyond our borders, boosting exports also from the services sector, which remains a key driver of export growth from the country, he said.

 

He stressed on the need to internationalise the goods and services to help in improving the quality of the products and also to have economies of scale. The minister sought states to be pro-active to achieve higher exports and contribute to the nation building process. According to him, education, tourism and audio-visual services as the areas with huge potential.

 

BOT meeting focused on reviewing the export performance to achieve the $2 trillion export target for year 2030, the priorities identified in the new Foreign Trade Policy (FTP) 2023, and the strategies and measures to be adopted in order to take forward the export growth, the commerce ministry said in a statement. It is an important mechanism for deliberations on trade related issues with industry bodies, associations, Export Promotion Councils (EPCs), state and union territories, besides 29 non-official members are also invited in the meeting, it said.

 

The meeting was also attended by minister of state for commerce Anupriya Patel, commerce secretary Sunil Barthwal, Director General of Foreign Trade Santosh Sarangi, other senior officials and members of the industry.

India will retaliate strongly against any Non-Tariff Barriers against its exports and for that industry has been asked to bring the instances where they have faced barriers to trade to the notice of the government, Commerce and Industry Minister Piyush Goyal said Tuesday.

 

'I have told them (other countries) very categorically that if you put one non-tariff barrier we will put two. It is reciprocal,' the minister said in his closing remarks at the second meeting of the reconstituted Board of Trade.

 

He asked the industry including small and medium enterprises to convey to the government any non-tariff barriers they face so that India’s negotiating position improves. 'Today I am not able to negotiate with foreign countries because we do not have the data for their non-tariff barriers,' Goyal added.

 

The non-tariff barriers are one of the barriers erected by countries to check imports despite agreeing to lower tariffs as part of their World Trade Organisation or free trade agreement commitments. These companies in the form of quality, environment and social standards imposed on sellers.

 

These non-tariff barriers are one of the reasons for Indian exporters not being able to fully utilise the benefits of lower duties that have come with various free trade agreements that India has signed.

 

Data suggests India’s FTA partners have gained more from the trade openings that have happened. 'Trade deficit increase has been at double the rate for FTA countries,' co-founder of Global Trade Research Initiative Ajay Srivastava had said in a report.

 

In the period between 2017 and 2022, India’s exports to its FTA partners increased by 31% while its imports increased by 82 per cent, according to the report. India’s FTA utilisation remains very low at around 25%, while utilisation for developed countries typically sits between 70–80%.

 

At the meeting Goyal asked the industry to take the issue of FTA utilisation very seriously particularly when so many FTAs are under discussions. India currently has 13 FTAs which include developed economies of Japan, South Korea and United Arab Emirates. With the growth economies of Association of SouthEast Asian Nations too there is a trade agreement. India is currently negotiating FTAs with the UK, European Union, Oman, Chile and European Union Free Trade Association that includes the economy of Switzerland.

 

The minister also announced that initiation of work on Trade Connect ePlatform, an intermediary platform providing the facility to connect Indian exporters and entrepreneurs with various stakeholders in international trade, will commence shortly.

 

The platform will be ready in next 3-4 months and will provide facilitation for new and aspiring exporters, information on various regulations to access markets, sectors, export trends, easy access of benefits under FTAs, access to sector specific events along with a facility to address trade related queries to officials in Government of India and associated entities to get expert advice.

Majority of the issues in the proposed free trade agreement (FTA) between India and the UK are either finalised or at an advanced stage of talks, a government official said on Monday. Additional Secretary in the Department of Commerce L Satya Srinivas said that the 14th round of negotiations between the officials of the two countries is underway here.

 

'The majority of the chapters are either closed or at an advanced stage of negotiation. Discussions are being held at the higher level as well as at the team level to iron out differences,' he told reporters here.

 

The talks for the pact began in January 2022. The current round of talks is expected to be the final one.

 

Talks are also progressing on the proposed Bilateral Investment Treaty (BIT).

 

There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.

 

Issues from both goods and services are pending for conclusion.

 

The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

 

On the progress on the proposed trade deal between India and the European Union (EU), he said the seventh round of talks will be held from February 19-23 here.

 

The track and chief negotiator level discussions on modalities for the services and investments chapter are scheduled this week.

 

Similarly, the sixth round of negotiations for a proposed trade agreement between India and the South American nation Peru is scheduled from February 12-15.

 

The ministry has held stakeholder consultations with the line ministries, export promotion councils, and industry chambers on the pact.

 

On the progress of talks for the India-Oman free trade agreement, Additional Secretary in the Department of Commerce Amardeep Singh Bhatia said that substantial progress has been made on the deal and the next round of talks will start from January 16.

Sachin Shivappa Doddamala, a progressive farmer from Basaragi village in Jatta taluk, Belagavi district, has emerged as an agricultural innovator, independently cultivating a unique grape variety known as VSD grapes.

 

Breaking away from the traditional reliance on researched cultivars provided by agricultural researchers, Sachin’s experiment with the VSD grape crop has garnered attention for its distinctive three-inch length, a significant deviation from the usual inch-and-a-half size grapes.

 

The journey of VSD grapes began when a farmer in Kawatemahakala village in Maharashtra discovered this super variety grape crop. After years of trials, the plant was named VSD, and Sachin successfully grew three to four-inch grape crops, attracting farmers from both Maharashtra and Karnataka to visit his farm and learn about this innovative cultivation.

 

The VSD variety, known for its higher yield compared to other grapes, has become a boon for farmers. Sachin’s farm, where the VSD grapes are cultivated, yields 20 tonnes per acre, fetching a price of Rs 60 to 80 per kilogram. The unique fruit has garnered demand not only domestically but also internationally, with exports to countries like Dubai, America, and Australia through Mumbai.

 

Long vines and soft texture

Characterized by its long vines and soft texture, the VSD grape variety has become a sought-after choice. Speaking to Siasat.com on Friday, Sachin shared his experiences, stating that while they traditionally grow grapes in their region over 70 acres, the introduction of VSD grapes from a neighboring village prompted them to experiment further. The cost-effective nature of this grape breed, coupled with its resistance to diseases, has made it advantageous for farmers.

 

Sachin, working alongside his nine siblings and relying on water brought from a distance of 18 kilometers, expressed satisfaction with the success of the grape crop, emphasizing the happiness it brings along with substantial income. He added that there is a growing demand for the VSD grape variety from abroad, with traders eagerly supplying grapes.

 

Encouraging other farmers, Sachin offered to share information about the crop and welcomed inquiries at 9307646705. The success story of VSD grapes showcases the potential of independent research and innovation in agriculture, contributing to increased yields and income for farmers.

 

India and Bangladesh share a strong bond based on their common history, language, and culture. India was quick to recognize Bangladesh and establish diplomatic relations in 1971, right after its independence. This relationship goes beyond just strategic cooperation; it’s rooted in equality, trust, and understanding. When it comes to trade, Bangladesh is India’s biggest trading partner in the subcontinent. In return, India is the second-largest export partner for Bangladesh, making up 12% of its total exports. In the fiscal year 2023, the total trade turnover between the two countries reached an impressive $14.22 billion. This economic collaboration highlights the deep connection and interdependence between India and Bangladesh, showcasing a partnership that extends beyond political ties. Most Bangladeshi products have easy access to Indian markets although this is for now diluted by the difficulty in penetrating the vast but highly competitive Indian market. Indian goods are transshipped through Bangladesh to connect its eastern region with its far-eastern region using Bangladeshi transportation, literally a quid pro quo. 

 

Bangladesh-India Trade Cooperation 2023 

 

India experienced a remarkable surge in exports to Bangladesh during the fiscal year 2023, showcasing the robust economic partnership between the two nations. The volume of trade encompassed an impressive array of 6,050 different commodities, highlighting the diversity in goods exchanged. Notably, the export figures reached US$ 12.20 billion, emphasizing significant growth compared to the previous fiscal year’s US$ 16.15 billion. Key contributors to this surge included other commodities valued at US$ 1.17 billion, cotton yarn (US$ 1.02 billion), petroleum products (US$ 816 million), other cereals (US$ 556 million), and cotton fabrics, made-ups, etc. (US$ 541 million). This momentum persisted into the initial months of April-May 2023, with exports reaching US$ 1.67 billion, underscoring the continued strength of the trade relationship.

 

The fiscal year 2023 witnessed an expanding appetite for Bangladeshi goods in India, as reflected in the import statistics. A diverse range of 1,155 commodities was imported from Bangladesh, contributing to a commendable US$ 2.02 billion in imports. This marked a notable increase from the previous year’s figure of US$ 1.97 billion. Leading items in India’s import basket included RMG cotton (US$ 510 million), cotton fabrics, made-ups, etc. (US$ 153 million), RMG manmade fibers (US$ 142 million), spices (US$ 125 million), and jute (US$ 103 million). The positive trend persisted into April-May 2023, with imports totaling US$ 278 million. This ongoing growth underscores the sustained and expanding economic exchange between India and Bangladesh, affirming the mutual benefit derived from their trade relationship.

 

 

Comprehensive Economic Partnership Agreement (CEPA)

 

India and Bangladesh are actively working towards a Comprehensive Economic Partnership Agreement (CEPA) in 2023, aiming to strengthen their economic ties. This agreement is anticipated to significantly boost trade, create job opportunities, and enhance living standards in both nations. The collaboration reflects a commitment to expanding the market for mutual benefit, fostering economic growth and development.

 

Swadhinata Sarak and Maitree Thermal Power Project

 

The Swadhinata Sarak, a road infrastructure project, serves as a symbol of the growing friendship between India and Bangladesh. Beyond strategic interests, it focuses on enhancing connectivity between the two nations, fostering an environment conducive to increased trade. Additionally, the joint inauguration of the Maitree Thermal Power project by the Prime Ministers contributes to energy security, adding to the already significant areas of cooperation, including trade, connectivity, and water sharing.

 

Currency Diversification in Bilateral Trade

 

In April 2023, India and Bangladesh took a strategic step to simplify trade transactions by agreeing to use their own currencies (Rupee and Taka) for a part of their bilateral trade. This move aims to reduce dependence on the US dollar, making trade more convenient for both nations. The gradual shift to local currencies aligns with the global trend of currency diversification and signifies a proactive approach to enhance economic cooperation.

 

Border Haats Expansion

 

Bangladesh and India are exploring the establishment of 16 new border haats, particularly in Mizoram and West Bengal. These initiatives aim to boost trade by providing better access to markets and economic opportunities for border communities. The expansion aligns with the broader strategy of reducing informal trade along the border, fostering economic growth in these regions.

 

Infrastructure and Connectivity Improvements

 

Both nations are actively enhancing infrastructure and connectivity to promote trade. Supported by initiatives, including Japanese funding, these efforts include the development of the Matabari Port in Bangladesh by 2027. The improved infrastructure is expected to facilitate smoother trade flows from India to Bangladesh and onward to Asian markets. Collaborative projects like the “Bay of Bengal Northeast Industrial Value Chain Concept” further underscore the commitment to strengthening economic ties.

 

Other developments 

 

In 2023, India and Bangladesh have elevated their economic partnership to a new level through a series of Memoranda of Understanding (MoUs) covering crucial areas. These agreements represent a comprehensive approach, focusing on water management, railway collaboration, scientific research, space technology, broadcasting, and judiciary. This holistic strategy addresses various facets that collectively strengthen the foundation for increased trade and mutual economic benefits between the two nations.

 

Expanding Bilateral Trade for Mutual Benefit

 

The future of Bangladesh-India trade cooperation holds immense potential for mutual benefit and regional prosperity. The Indo-Pacific, with its economic dynamism and strategic relevance, has become a focal point for foreign policy considerations. Within this framework, the Bay of Bengal region stands out as a vital area for growth and collaboration. The bilateral relations between Bangladesh and India serve as a model for the entire region, showcasing collaborative efforts that span various sectors. As the geopolitical construct of the Indo-Pacific evolves, it is crucial for these smaller regions to develop through inter-country cooperation and a shared vision of the future.

 

The trade dynamics between Bangladesh and India are central to this shared future. Through initiatives like Comprehensive Economic Partnership Agreements (CEPA) and the Bay of Bengal Northeast Industrial Value Chain Concept, both nations aim to boost trade and economic ties significantly. Such collaborations are expected to result in substantial growth in exports and imports, contributing to the prosperity of both countries. An increased focus on water management, transportation connectivity, scientific cooperation, and space technology further strengthens the foundation for a flourishing trade relationship.

 

As both nations continue to navigate the complexities of regional geopolitics, their commitment to a shared future becomes crucial. By fostering economic cooperation, addressing common challenges, and strengthening diplomatic ties, Bangladesh and India are poised to shape a positive and mutually beneficial trajectory for their trade relations in the years to come.

 

Navigating Challenges and Building Collaborations

 

The future of Bangladesh-India trade cooperation is not without challenges. The specter of potential migration due to climate change in Bangladesh poses a unique set of considerations for India. However, a shared commitment to securing Bangladesh politically, socially, and economically becomes a driving force in preventing undesirable scenarios. By emphasizing inclusive policies and sustainable development, both nations can proactively address challenges related to migration, contributing to regional stability.

 

While China plays a significant role in the region, the unique historical and geographical ties between India and Bangladesh create a distinct imperative for collaboration. Despite China’s economic presence, the strategic importance of India as a neighbor with the longest land border in South Asia cannot be overlooked. This inescapable relationship brings obligations, encouraging a nuanced approach to diplomacy that prioritizes being Bangladesh-friendly.

 

The potential for a Free Trade Agreement (FTA) adds another layer to the positive trajectory of Bangladesh-India trade. Projections indicate significant growth in bilateral trade if an FTA is established, offering opportunities for both nations to capitalize on their respective strengths. Initiatives like the “Bay of Bengal Northeast Industrial Value Chain Concept” further underscore the commitment to attracting manufacturing and increasing trade.

 

To conclude, in 2023, the Bangladesh-India trade relations have reached noteworthy milestones, laying the groundwork for unprecedented growth and collaboration. The Comprehensive Economic Partnership Agreement (CEPA) underscores a shared commitment to economic expansion, job creation, and improved living standards. Symbolic projects like the Swadhinata Sarak and the Maitree Thermal Power project signify deepening ties and contribute to enhanced connectivity and energy security, vital elements for fostering increased trade. The strategic move towards currency diversification in bilateral trade reflects a proactive approach to facilitate smoother transactions. Initiatives like the expansion of border haats, infrastructure enhancements, and collaborative projects demonstrate a joint vision for robust economic ties and regional development. The series of Memoranda of Understanding (MoUs) covering crucial areas further exemplify the comprehensive nature of this economic partnership, reinforcing the foundation for increased trade and mutual economic benefits. This collective effort, marked by a collaborative spirit, not only navigates challenges but also contributes to the broader prosperity of the region.