Bangladesh, India agree to work towards boosting bilateral trade

Commerce Minister seeks more investments from UK

FE Team | Published: March 02, 2026 21:42:19

Bangladesh and India have agreed to work towards expanding bilateral trade, Commerce Minister Khandakar Abdul Muktadir said on Monday, report agencies.
"Trade between the two countries has faced various obstacles due to some mutual decisions. Both sides have drawn each other's attention to reviewing decisions such as the closure of several Indian land ports, border haats and the cancellation of trans-shipment facilities," he said.
The commerce minister made the remarks while talking to reporters after a meeting with Indian High Commissioner Pranay Verma at his office at the Bangladesh Secretariat.
The minister said the high commissioner primarily came as part of a courtesy call to welcome the new government but discussions also covered various aspects of increasing trade between the two countries.
Talks included the reopening of some closed land ports, he added.
Muktadir said Bangladesh also drew India's attention to existing restrictions on the export of some products while the Indian side mentioned restarting closed border haats.
"There are, in fact, some mutual barriers created by both countries and it is true that these have affected trade relations," he said the high commissioner would discuss the issues at higher levels in his country while Bangladesh would also raise the matters in the cabinet.
Replying to a question, Muktadir said there was no discussion on the future of Indian-funded projects.
Asked about the possibility of fuel and food shortages if the Strait of Hormuz is closed due to the Iran war, the minister said shipping costs would rise in that case.
"There is no need for immediate concern as the situation could be resolved within a couple of days. If not, the government would take alternative measures and there is currently no shortage of goods in the country, he said.
Meanwhile, Commerce Minister Khandaker Abdul Muktadir sought enhanced investment from the UK especially in Bangladesh's tea, fertiliser and ICT sectors.
Muktadir made the request when British High Commissioner to Bangladesh Sarah Cooke met him at his office at Bangladesh Secretariat in the capital Monday.
During the meeting, both sides emphasised strengthening existing trade ties between the two countries and explored potential areas for new investment.
The Commerce Minister said Bangladesh is keen to work with the United Kingdom to ensure mutual benefits through effective and sustainable economic cooperation.
He highlighted the need for British investment to modernize and boost production in the tea industry in Sylhet, noting that the region's tea gardens hold significant investment potential. Referring to the UK's historical involvement in Bangladesh's tea sector, he said increased investment would generate more employment opportunities and thus contribute to the development of tourism.
Muktadir also pointed out that fertiliser factories in Bangladesh cannot operate year-round due to gas shortages. He stressed the need for foreign investment to enable year-round operations through the use of LPG. In this regard, he invited British investors to invest in fertilizer plants as well as in the country's rapidly growing information and communication technology (ICT) sector.
High Commissioner Sarah Cooke expressed her commitment to advancing the long-standing trade partnership between the two countries. She also showed interest in supporting capacity building of officials associated with the Ministry of Commerce's Trade Negotiation Pool.
The UK envoy expressed particular interest in investing in Sylhet's tea gardens, seafood, leather processing, export diversification and light engineering industries, saying British investors are keen to explore opportunities in these sectors.
State Minister for Commerce Md Shariful Alam, Commerce Secretary Mahbubur Rahman and Additional Secretary (Export) Md Abdur Rahim Khan were present at the meeting.