World Trade
Bangladesh is lagging behind the United States and China in exports to India
Trade Desk
Published: 01 January 2022, 21:10
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In the new year, Bangladesh is going to take a more important place in the export trade with India. According to the published data, in the current financial year (2021-22), Bangladesh is going to be the fourth largest export partner of India, leaving behind the United States, United Arab Emirates and China. News from The Policy Times.
Bangladesh is lagging behind the United States and China in exports to India
India's fiscal year starts from April. According to the data, in the first seven months of the current financial year (April-October, 2021), India's export earnings in Bangladesh increased by 71 percent compared to the same period of the last fiscal year (2020-21). In terms of money, the amount is about eight hundred and fifty crore (7.6 billion US dollars). This is up from কোটি 900 million (০ 9.09 billion) in the last fiscal year, an increase of 10.63 percent.
In the last 2019-20 fiscal year, Bangladesh was in the ninth position in terms of importing goods from India. In the wake of the coronavirus outbreak, imports rose further, reaching fifth place in the last fiscal year. As that trend continues, it is expected that Bangladesh will be in the fourth position in the current financial year.
The main products exported from Bangladesh to India during April-October last year were cotton (২১ 2.1 billion), cereals (কোটি 1.3 billion), electricity and fuel (কোটি 600 million), car parts (কোটি 500 million) and other equipment (500 million). কোটি 400 million).
Ajay Sahai, director general and chief executive of the Federation of Indian Export Organizations (FIEO), said the United States and other European countries had to go through stricter restrictions due to the coronavirus. Compared to that, exports have increased in Bangladesh as there are relatively few barriers to the movement of goods. In addition to diplomatic efforts, easy supply by rail and waterways and demand for agricultural products, these three factors have increased exports.
According to the published data, despite the Corona epidemic, India's economy shrunk by 6 percent in 2020, but Bangladesh's GDP growth has been 3.8 percent. Overall, Bangladesh's exports have increased by 11 percent.
The two countries have taken initiative to maintain this progress of export trade with India. At a recent virtual summit between Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi, the two leaders discussed issues including tariff exemptions, port restrictions, procedural barriers and quarantine restrictions.