The establishment of joint ventures between India and Bangladesh are being proposed as a means of redressing the imbalance in bilateral trade. The joint ventures could involve sourcing raw materials from India and re-exporting the finished product from Bangladesh back to India.
The areas pinpointed as possible sectors for these projects are: textile and garment manufacturing units using Indian fabrics; leather and leather products; fertiliser and sponge plants; gas plants etc.
India has progressively been reducing tariffs for Bangladesh items both under SAPTA (South Asian Preferential Trade Agreement) and the Bangkok Agreement, but Bangladeshi ministers claim further action is required in order to improve Bangladesh’s export industry.
