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Bangladesh's Export Opportunities in the Indian Market : Addressing Barriers and Strategies for Future

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Author Info

  • Mustafizur Rahman

    (Centre for Policy Dialogue  )

  • Towfiqul Islam Khan
  • Ashiqun Nabi
  • Tapas Kumar Paul

Abstract

This article investigates new opportunities that are emerging for Bangladesh with regard to her trade with India. In spite of the growing bilateral trade deficit, value of Bangladesh’s exports to India increased by about three times over the last five years. Examination of the dynamics of Bangladesh-India bilateral trade reveals that the number of products in Bangladesh’s export basket has registered significant increase, while at the same time, composition of the country’s exports to India has also shifted towards newer and non-traditional products. Revealed Comparative Advantage (RCA) analysis shows that export items with RCA>1 in India, which include raw jute, chemical fertiliser, cement, RMG, leather, battery, textile fabrics and some other items, have significant export opportunities and have a combined potential market of USD 2 billion in India. On the basis of examination of various tariff and non-tariff barriers to trade with India, the article attempts to assess the economic implications of India’s sensitive list as it applies to Bangladesh, and argues that elimination of this list is not likely to have an adverse impact on India’s revenue earnings. The article also comes up with a number of recommendations to deal with the non-tariff barriers faced by Bangladesh in her trade with India, particularly in areas related to constraints arising from lack of trade facilitation.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 23060.

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Date of creation: Jan 2010
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Handle: RePEc:eab:tradew:23060

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Related research

Keywords: India; Bangladesh; trade; economic integration; revealed comparative advantages; tariff barriers;

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References

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  1. Sawhney Aparna & Kumar Rajiv, 2008. "Rejuvenating SAARC: The Strategic Payoffs for India," Global Economy Journal, De Gruyter, De Gruyter, vol. 8(2), pages 1-19, June.
  2. Mustafizur Rahman & Wasel Bin Shadat & Narayan Chandra Das, 2006. "Trade Potential in SAFTA - An Application of Augmented Gravity Model," Trade Working Papers, East Asian Bureau of Economic Research 22296, East Asian Bureau of Economic Research.
  3. Hassan, M. Kabir, 2001. "Is SAARC a viable economic block? evidence from gravity model," Journal of Asian Economics, Elsevier, Elsevier, vol. 12(2), pages 263-290.
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Cited by:
  1. Mustafizur Rahman & Mazbahul Golam Ahamad & A K M Nazrul Islam & Muhammad Al Amin, 2012. "Agricultural Trade between Bangladesh and India: An Analysis of Trends, Trading Patterns and Determinants," CPD-CMI Working Paper, Centre for Policy Dialogue (CPD) 3, Centre for Policy Dialogue (CPD).

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