Trade imbalance with India

This is evidenced by the time-bound approach taken by Indian commerce minister Kamal Nath to start resolving the problem in earnest. He has given assurances to Bangladesh commerce minister Altaf Hossain that 'necessary measures' would be taken by February to remove trade barriers that restrict Bangladesh's exports to the Indian market. The Indian minister has apparently set his ministry a target to make sure he did not come empty-handed to Dhaka in February when he is likely to visit Bangladesh capital at the invitation of his counterpart in Dhaka.

Hopefully, the time-frame is not rhetorical. What's crucial for better Indo-Bangladesh relations is that a right beginning be made, and a new direction or thrust be given towards achieving a balanced inter-penetration of markets between India and Bangladesh. If a process is truly set in motion to alleviate the trade imbalance with Bangladesh by February we would be more than happy. If Kamal Nath's assurances have been duly backed by a political will at the highest level of Indian leadership then the job is more than half done.

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We agree that bilateral trade could be expanded from the present level of $2 billion to $5 billion in a couple of years' time in view of 'the potential that exists', but an increase in the volume of trade by itself wouldn't make much of a difference in the situation; indeed, it could lead to a self-defeating exponential growth in the imbalance unless Bangladesh's exports get a better deal, gain full access to the Indian markets.

The rigid import regime in India needs to be radically relaxed if more Bangladesh products are to enter her market. The earlier understanding on zero tariff access to Bangladesh goods coupled with the Indian minister's affirmation of commitment to the fundamental principles of MFN should leave us in an optimistic frame of mind that something tangible would be soon done to reduce India's huge trade gap with Bangladesh.