Bangladesh may become India's fourth largest export destination in FY22
- Bangladesh could become India’s fourth-largest export destination in FY22.
- This occurs as India’s exports continue to expand as a result of its eastern neighbor’s economic progress.
- According to disaggregated data available till October, exports to Bangladesh increased by 81% to $7.7 billion in the first seven months, compared to the same time the previous year.
- After the United States, the United Arab Emirates, and China, it is India’s fourth-largest export market.
Bangladesh top destination for wheat exports
- In 2020-21, India’s wheat exports are mainly to neighbouring countries with Bangladesh having the largest share of more than 54% in both volume and value terms.
- India and Bangladesh are currently conducting a joint study to see if they can reach an agreement on a bilateral comprehensive economic partnership (CEPA).
- In order to promote cooperation on bilateral trade, an India-Bangladesh CEO’s Forum was established in December 2020 to provide policy-level insights in several areas of trade and investment as well as enable contacts between business groups and is set to meet shortly to further strengthen trade and economic ties.
- To enhance linkages and collaboration in the textile sector, the first meeting of the India-Bangladesh Textile Industry Forum was held in February 2020.
- The economy of Bangladesh is expected to grow at 5.5 % in FY22 and 6.8 % in FY23, according to the Asian Development Bank (ADB). ADB, in its Asian Development Outlook released in September, said excluding petroleum, imports (overall) by Bangladesh increased by 14.5% in FY21.