BD, India to eye on reducing bilateral trade deficit
Bangladesh and India are taking steps to restore regular economic engagement, with a 10-member Bangladeshi delegation travelling to New Delhi for the 16th meeting of the Joint Working Group on Trade after a gap of nearly three years.
The meeting, scheduled for Oct 8-9, comes as Dhaka and New Delhi seek to rebuild working-level ties amid continuing political sensitivities and uncertainty over the timing of Prime Minister Tarique Rahman’s proposed visit to India.
The Bangladeshi delegation is being led by Ayesha Akter, additional secretary of the FTA wing of the Ministry of Commerce. The officials are scheduled to leave Dhaka on Oct 7 and return on or around Oct 10, according to a government order approving the visit.
The delegation includes Additional Secretary of the Ministry of Railways Ziaul Haque; Joint Secretary of the Ministry of Commerce Firoz Uddin Ahmed; National Board of Revenue representative and Benapole Customs House Commissioner Mohammad Faizur Rahman; Joint Secretary of the Bangladesh Land Port Authority Mohammad Shamim Alam; Deputy Secretary of the Ministry of Commerce Farhana Islam;
Joint Chief of the Bangladesh Trade and Tariff Commission Mamun-ur-Rashid Askari; Director (South Asia-1) at the Ministry of Foreign Affairs Baki Billah; Senior Assistant Secretary of the Ministry of Commerce Marina Sultana; and Assistant Director of the Bangladesh Standards and Testing Institution Firoz Ahmed. The talks are expected to focus on reducing the bilateral trade deficit, removing barriers to imports and exports and identifying ways to expand trade and broader economic cooperation.
The Joint Working Group normally meets annually. Its 15th meeting was held in Dhaka on Sept 26-27, 2023, while the 14th meeting took place in New Delhi on March 2-3, 2022.
The regular mechanism subsequently stalled amid the deterioration in Bangladesh-India relations following the fall of the Sheikh Hasina government in August 2024.
The resumption of the trade working group comes after both countries introduced measures affecting cross-border commerce.
In April 2025, Bangladesh stopped imports of Indian yarn through the land ports of Benapole, Bhomra, Sonamasjid, Banglabandha and Burimari, while allowing such imports through seaports.
India subsequently imposed restrictions on the import of several Bangladeshi products through land ports, including ready-made garments, processed food, plastics and PVC products. Restrictions were later extended to jute and some textile products.
These measures have added to longstanding concerns over market access, non-tariff barriers, customs procedures and the use of land ports.
Against this backdrop, the upcoming working group meeting provides an opportunity for both sides to address practical trade irritants without waiting for a broader political settlement.
Previous meetings have covered the development of land ports and integrated check posts, removal of port-related restrictions, revival and expansion of border haats, rail freight, regional connectivity, harmonisation of product standards and mutual recognition arrangements.
The two sides have also discussed preparations and a joint study for a proposed Bangladesh-India Comprehensive Economic Partnership Agreement, supplies of essential commodities to Bangladesh and keeping the Petrapole-Benapole land port operational around the clock.
The issue of trade barriers was also discussed when Commerce Minister Khandaker Abdul Muktadir met Indian High Commissioner to Bangladesh Dinesh Trivedi in Dhaka on Aug 24.
According to the Commerce Ministry, the meeting discussed expanding bilateral trade and removing obstacles faced by businesses. The reopening of suspended border haats, ensuring land ports operate at full capacity and lifting restrictions on Indian yarn imports were among the issues raised.
The discussions indicated that, despite political differences, both sides have an interest in keeping economic channels open.
For Bangladesh, the trade relationship with India is particularly important because India is one of its largest trading partners and a major source of raw materials, intermediate goods and essential commodities.
For India, Bangladesh is a major neighbouring market and an important component of its connectivity and economic engagement with South and Southeast Asia.
There are also signs that the two countries are taking a gradual approach to restoring high-level institutional engagement.
The Indian side, however, reportedly indicated that a secretary-level meeting should take place only after other institutional mechanisms dealing with issues such as transit and border trade have completed their discussions.
This suggests that New Delhi is favouring a step-by-step restoration of bilateral mechanisms rather than immediately moving towards a broader political or bureaucratic engagement.
The trade working group meeting itself was originally scheduled for Oct 7-8. The Bangladeshi delegation could not leave on the planned date because of logistical difficulties, prompting the meeting to be rescheduled for Oct 8-9.
The renewed trade engagement comes against the backdrop of uncertainty over Prime Minister Tarique Rahman’s proposed bilateral visit to India.
India has invited Rahman to visit New Delhi, but no date has yet been finalised.
The timing of the visit is complicated by the busy diplomatic calendars of both countries and by the number of outstanding bilateral issues requiring discussion.
Rahman is expected to travel to Japan this month, while possible visits to Türkiye and Saudi Arabia are being considered for November. Indian Prime Minister Narendra Modi also has several international engagements scheduled in the coming months.
Bangladesh also did not attend the BRICS Summit last month despite an invitation extended to Rahman in his capacity as chair of BIMSTEC.
The latest developments indicate that Dhaka and New Delhi are attempting to rebuild their relationship through practical institutional engagement, even though politically sensitive issues remain unresolved.
The relationship has been strained by several issues since August 2024, including the presence of former Prime Minister Sheikh Hasina in India, border management, visa restrictions and differences over a range of political and diplomatic matters.
The two governments have nevertheless maintained channels of communication on issues where cooperation is mutually necessary.
The revival of the Joint Working Group on Trade after nearly three years is therefore more than a routine bureaucratic meeting. It offers the two sides an opportunity to address some of the economic friction that has accumulated during the period of political estrangement.
The immediate agenda is likely to remain practical: easing restrictions, improving customs and land-port operations, facilitating movement of goods, addressing non-tariff barriers and restoring predictable conditions for businesses.
Whether these talks can lead to a wider improvement in bilateral relations will depend on progress in other areas as well. But the return of regular working-level consultations could provide an important foundation for rebuilding trust.
For Dhaka and New Delhi, the immediate challenge is to ensure that political disagreements do not continue to disrupt the economic and people-to-people links that underpin the wider relationship.
