Presently, the Indian Prime Minister (PM) had arrived in Dhaka on March 26 on a two-day visit to Bangladesh to the festivals of the country’s 50th year of freedom from Pakistan and the 100th birth commemoration of its originator Sheik Mujibur Rahman, the father of Prime Minister Sheikh Hasina. India and Bangladesh have operationalized another riverine shipping lane to help availability between two nations and marked the Protocol on Inland Water Transit and Trade.
During his visit, Modi gifted 109 ambulances and 1.2 million Covid-19 antibody portions to Bangladesh. The Indian PM handed over the keys of the ambulances to his Bangladesh partner during a visit to her office on Saturday evening. As of now, India and Bangladesh have operationalized another riverine shipping lane on September 3, where a Bangladeshi vessel moved a freight of concrete to Tripura (India) as a component of endeavors to help availability between the two nations and marked the Protocol on Inland Water Transit and Trade (PIWTT). This new shipping lane will profit both the countries and will assist India with fortifying the bonds with the neighbor. In this article, researchers have shed light on the emerging bilateral trade relations between the two nations.
India was the primary nation to perceive Bangladesh as a separate and independent state and set up diplomatic relations with the country following its autonomy in December 1971. The relationship between the two countries is moored ever, culture, language, and shared estimations of secularism, vote-based system, and innumerable different shared characteristics between them. Over the most recent few years, the relationship has been additionally fortified incorporating through participation in new and high-innovation territories. Previous analysis indicates that Bangladesh’s exports to India could increase by 182 % and India’s exports to Bangladesh by 126 % if the countries signed a free trade agreement (FTA). This analysis found that improving transport connectivity between the two countries could increase exports even further, yielding a 297 % increase in Bangladesh’s exports to India and a 172 % increase in India’s exports to Bangladesh.
Today, respective exchange represents just around 10% of Bangladesh’s exchange and a simple 1 percent of India’s exchange. While, in East Asian and Sub-Saharan African economies, intraregional exchange represents 50% and 22 percent of absolute exchange, individually. Indeed, it is around 15–20 percent more affordable for an organization in India to exchange with an organization in Brazil or Germany than with an organization in Bangladesh. High tariffs, para-tariffs, and nontariff obstructions additionally fill in as significant exchange boundaries. Straightforward normal levies in Bangladesh trade and India are more than twice the world’s normal.
In addition, the South Asia Free Trade Agreement (SAFTA) was endorsed in 2004, however came into power on 01 January 2006. Original member nations were Bangladesh, Bhutan, India, Pakistan, Maldives, Nepal, and Sri Lanka. Afterward, Afghanistan consented to the Agreement through endorsement at the Fifteenth SAARC Summit held in Colombo on 2-3 August 2008. The SAFTA Agreement additionally has a typical Rules of Origin (RoO) for deciding the eligibility to tariff benefits accessible under the Agreement. Trade liberalization program (TLP) under SAFTA initiated on 1 July 2006. Part nations keep a delicate rundown, and items showing up in the touchy records won’t appreciate tax concessions. Under the TLP, all SAARC nations have been carrying out SAFTA by giving vital traditions notices. These notices gave by other part nations permit Bangladeshi exporters to get tariff concessions on the off chance that they trade their items to those nations.
Though, SAARC Preferential Trading Arrangement (SAPTA) mirrored the longing of the Member States to promote and support common exchange and financial collaboration inside the SAARC regions through the trading of tariff concessions. The idea of liberalizing trade among SAARC nations was first mooted by Sri Lanka at the 6th Summit of the SAARC held in Colombo in December 1991. Four rounds of dealings were held under SAPTA. SAPTA was conceived principally as the initial move towards the change to SAFTA driving therefore towards a Customs Union. Likewise, SAPTA was supplanted with the execution of SAFTA. Item inclusion was restricted under SAPTA and utilization of tax inclinations under the SAPTA has been progressively diminishing.
Cooperation in the power and economic sector has become one of the hallmarks of India Bangladesh relations. Bangladesh is presently bringing in around 660 MW of power from India. The 1320 MW coal-terminated Maitree nuclear energy station, a 50:50 JV between National Thermal Power Corporation (NTPC) of India and Bangladesh Power Development Board (BPDB), is being developed at Rampal. Numerous Indian public area units, for example, Indian Oil Corporation, Numaligarh Refinery Limited, Petronet LNG Ltd are working with their Bangladeshi partners in the oil and gas area of Bangladesh.
In addition to LOC funds, one report tells that the Government of India also provides grant assistance to Bangladesh for projects under ‘Aid to Bangladesh’. Projects such as the construction of school/college buildings, laboratories, dispensaries, deep tube wells, community centers, renovation of historical monuments/buildings, etc have been financed by the Government of India under this program. India-Bangladesh is a good example of connectivity through all modes of transport. The movement of goods by road is operationalized through 36 functional Land Customs Stations (LCSs) and 2 Integrated Check Posts (ICPs) along the border. This includes the Petrapole-Benapole ICP through which more than 50% of the bilateral trade takes place on account of which it has been decided to operate these land portions 24x7basis since 01 August 2017.
In nutshell, both nations have very good relations which also proved by Indian PM Visit in March, he also signed five MoU during his visit to Bangladesh. Also, India was the first nation who recognized Bangladesh as an independent state. Moreover, they boost their bilateral relations through trade, and presently both nations have operationalized another riverine shipping lane on September 3, which help both countries in term of trade and it will profitable for both of them. There are still some issues between both nations but it can be resolved by signing some other agreements which should stop creating issues in the future.