The International Chamber of Commerce Bangladesh (ICCB) said that Bangladesh’s export to India can grow by 300% if it can fetch just 1% of India’s imports. India-Bangladesh bilateral trade was worth only $11 billion in fiscal 2021-22, out of which export from Bangladesh to India was worth mere $1.27 billion, ICCB mentioned in its quarterly news bulletin for April-June this year.
The estimation from the World Bank said the country’s exports to India could rise by 182% from the current level if the countries implement a free trade agreement. Improving transport connectivity between the two sides could increase exports even further, yielding a 297% rise.
Bangladesh, Bhutan, India and Nepal would save an estimated $17 billion in capital costs in electricity. However, opportunities for growth through regional trade remain largely untapped in the region and intra-regional trade in South Asia remains much below the actual potential. At present, regional trade in South Asia accounts for only 5% of estimated $23 billion in trade flow; well below the potential trade of $67 billion.
In contrast, the ratio of trade in other regions are 50% for East Asia, 26% for ASEAN, 67% for the European Union, 62% for NAFTA, and 22% for LAC and COMESA.
Along with Bangladesh, other neighboring countries in this region have better trade with distant countries than their neighbors, the report expressed.
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