Bilateral Trade and Investment

The first Trade Agreement between India and Bangladesh was signed in 1972. The India-Bangladesh Trade Agreement was last renewed during PM’s visit in June 2015 for a period of 5 years with a provision for auto renewal. There are a number of other trade related agreements that have been signed between both countries.

• Bilateral trade between India and Bangladesh has grown steadily over the last decade. In the five years, total trade between the two countries has grown by more than 17%. India’s exports to Bangladesh in the period July 2016 – March 2017 stood at US$ 4489.30 million and imports from Bangladesh during FY 2016-17 stood at US$ 672.40 million.
• India has provided duty free quota free access to Bangladesh on all tariff lines except tobacco and alcohol under South Asian Free Trade Area (SAFTA) since 2011.
• Total Indian investment proposals in Bangladesh registered with the Bangladesh Investment Development Authority (BIDA) exceed US$ 3billion. Indian Foreign Direct Investment (FDI) in Bangladesh reached US$ 88.0million in 2015-16. During PM Sheikh Hasina’s visit in April 2017, 13 agreements worth around US$ 10 billion of mainly Indian investment in power and energy sectors in Bangladesh were signed.