World Bank released a report highlighting the untapped potential of trade between India and Bangladesh. Titled 'Connecting to Thrive: Challenges and Opportunities of Transport Integration in Eastern South Asia', the report states that Bangladesh's exports to India could increase by 182 percent and India's exports to Bangladesh by 126 percent if the countries sign a free trade agreement.
The report also claimed that improving transport connectivity between the two countries could increase exports, yielding a 297 percent increase in Bangladesh's exports to India and a 172 percent increase in India's exports to Bangladesh.
India's exports to Bangladesh in FY18-19 stood at $9.21 billion and imports during the period were at $1.04 billion. In comparison, Bangladesh's trade deficit with china is hugely tilted in Beijing's favour.
China exported goods worth $13,638 million to Bangladesh in 2018-19 but Bangladesh's exports stood at $568 million. So what are the steps the two countries can take to bridge the trade gap and tap the unutilised trade opportunity to reap higher gains? To discuss this Junaid Ahmad, Country Head of World Bank spoke to CNBC-TV18.To know more, watch the video.