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


  • Mustafizur Rahman

    (Centre for Policy Dialogue ÂÂÂ)

  • Towfiqul Islam Khan
  • Ashiqun Nabi
  • Tapas Kumar Paul


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.)

Suggested Citation

  • Mustafizur Rahman & Towfiqul Islam Khan & Ashiqun Nabi & Tapas Kumar Paul, 2010. "Bangladesh's Export Opportunities in the Indian Market : Addressing Barriers and Strategies for Future," Trade Working Papers 23060, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:tradew:23060

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    References listed on IDEAS

    1. Hassan, M. Kabir, 2001. "Is SAARC a viable economic block? evidence from gravity model," Journal of Asian Economics, Elsevier, vol. 12(2), pages 263-290.
    2. Mahinda Siriwardana & Jinmei Yang, 2007. "Effects of Proposed Free Trade Agreement between India and Bangladesh," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 8(1), pages 21-38, January.
    3. Mustafizur Rahman & Wasel Bin Shadat & Narayan Chandra Das, 2006. "Trade Potential in SAFTA - An Application of Augmented Gravity Model," Trade Working Papers 22296, East Asian Bureau of Economic Research.
    4. Sawhney Aparna & Kumar Rajiv, 2008. "Rejuvenating SAARC: The Strategic Payoffs for India," Global Economy Journal, De Gruyter, vol. 8(2), pages 1-19, June.
    5. Prabir De & Biswa N. Bhattacharyay, 2007. "Deepening India–Bangladesh Economic Cooperation : Challenges and Opportunities," Macroeconomics Working Papers 22098, East Asian Bureau of Economic Research.
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    Cited by:

    1. Mustafizur Rahman & Khondaker Golam Moazzem & Mehruna Islam Chowdhury & Farzana Sehrin, 2014. "Connecting South Asia and Southeast Asia : A Bangladesh Country Study," Development Economics Working Papers 24423, East Asian Bureau of Economic Research.
    2. 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 3, Centre for Policy Dialogue (CPD).

    More about this item


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

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration


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