Bangladesh's Export Opportunities in the Indian Market: Addressing Barriers and Strategies for Future

Mustafizur Rahman, Towfiqul Khan, Ashiqun Nabi and Tapas Kumar Paul

No 90, CPD Working Paper from Centre for Policy Dialogue (CPD)

Abstract: This article investigates new opportunities that are emerging for Bangladesh with regard to her trade with India. In spite of the growing bilateral trade deficit, value of Bangladesh’s exports to India increased by about three times over the last five years. Examination of the dynamics of Bangladesh-India bilateral trade reveals that the number of products in Bangladesh’s export basket has registered significant increase, while at the same time, composition of the country’s exports to India has also shifted towards newer and non-traditional products. Revealed Comparative Advantage (RCA) analysis shows that export items with RCA>1 in India, which include raw jute, chemical fertiliser, cement, RMG, leather, battery, textile fabrics and some other items, have significant export opportunities and have a combined potential market of USD 2 billion in India. On the basis of examination of various tariff and non-tariff barriers to trade with India, the article attempts to assess the economic implications of India’s sensitive list as it applies to Bangladesh, and argues that elimination of this list is not likely to have an adverse impact on India’s revenue earnings. The article also comes up with a number of recommendations to deal with the non-tariff barriers faced by Bangladesh in her trade with India, particularly in areas related to constraints arising from lack of trade facilitation.

Keywords: SAFTA; Bangladesh trade with India; non-tariff barrier (search for similar items in EconPapers)
Pages: 40 pages
Date: 2010-07
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Citations: View citations in EconPapers (5)

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Working Paper: Bangladesh's Export Opportunities in the Indian Market: Addressing Barriers and Strategies for Future (2010)
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