The Government of Bangladesh has initiated a multi-faceted plan to bridge the bilateral trade deficit with India by reducing import dependency and enhancing export growth, Commerce Minister Khandakar Abdul Muktadir informed Parliament on Thursday.
Responding to a query from Member of Parliament Md Mahbubur Rahman during a session presided over by Speaker Hafiz Uddin Ahmad, the minister said the government is moving forward with the Comprehensive Economic Partnership Agreement (CEPA) to address the prevailing trade imbalance.
He noted that while a bilateral trade agreement was first signed in 1972 and subsequently renewed in 2015 after necessary revisions, the government is now seeking a more expansive framework. Following a joint feasibility study and the exchange of trade data, formal negotiations for CEPA are set to commence to foster deeper cooperation in goods, services, and investment.
Statistical data for the 2024-25 financial year reveals that the total bilateral trade volume reached 11,388.33 million US dollars, of which Bangladesh’s exports accounted for 1,764.23 million US dollars.
Currently, Bangladesh enjoys duty-free access to the Indian market for all products except 25 items, primarily tobacco and drugs, under the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA). Additional benefits are also utilised through the SAARC Preferential Trading Agreement (SAPTA) and the Duty Free Tariff Preference (DFTP) Scheme.
Despite these facilities, the minister acknowledged the persistence of non-tariff barriers hindering Bangladeshi exports. To mitigate these challenges, the government is consistently participating in international trade fairs across various Indian provinces and holding regular meetings at the Commerce Secretary and Working Committee levels.
The CEPA is also viewed as a critical tool to maintain duty-free access and economic advantages for Bangladeshi goods after the country graduates from its Least Developed Country (LDC) status.
In addition to export promotion, the government is focusing on import substitution to reduce reliance on Indian imports. This strategy involves fostering domestic industrial growth, discouraging the import of goods that can be produced locally, and incentivising the procurement of essential raw materials and capital machinery.
These priorities are central to the proposed Import Policy Order 2026-2029, which aims to enhance the competitiveness of local industries, ensure the efficient use of foreign exchange, and modernise import management systems to be more transparent and contemporary.
