Understanding the reasons for Indo-Bangladesh trade gap
Monday, 18 January 2010
The huge trade gap existing between India and Bangladesh has more to do with the differing nature of economies of both countries. It is not really because of any hostile or restrictive policy followed by India.
Bangladesh is dependent on India for cost-efficient import of its essentials such as food grains and raw materials for its garments industries. When India restricted export of these items because of growing domestic demand, prices of these commodities shot up in Bangladesh.
India is exporting also a large number of other items. On the other hand, Bangladesh has few items to offer, competitively . Hence a huge trade gap is bound to exist. Bangladesh could have bridged this gap by providing trans-shipment facility to India. Unfortunately, it did not want to do this as any policy which appeared as pro-India was perceived as anti-national by many in Bangladesh. India also tried to encourage investment in Bangladesh so that the number of products exported from that country can be increased. But even in that case, Bangladesh has shown little interest.
The recent increase in Bangladeshi export to northeastern India is because of favourable policy followed by the latter. India wants to deepen the economic relationship between Bangladesh and northeastern India which will be beneficial for both of them.
Rafiqul Islam
Baridhara, Dhaka
Bangladesh is dependent on India for cost-efficient import of its essentials such as food grains and raw materials for its garments industries. When India restricted export of these items because of growing domestic demand, prices of these commodities shot up in Bangladesh.
India is exporting also a large number of other items. On the other hand, Bangladesh has few items to offer, competitively . Hence a huge trade gap is bound to exist. Bangladesh could have bridged this gap by providing trans-shipment facility to India. Unfortunately, it did not want to do this as any policy which appeared as pro-India was perceived as anti-national by many in Bangladesh. India also tried to encourage investment in Bangladesh so that the number of products exported from that country can be increased. But even in that case, Bangladesh has shown little interest.
The recent increase in Bangladeshi export to northeastern India is because of favourable policy followed by the latter. India wants to deepen the economic relationship between Bangladesh and northeastern India which will be beneficial for both of them.
Rafiqul Islam
Baridhara, Dhaka