The Comprehensive Economic Partnership Agreement or ‘CEPA’ agreement between Bangladesh and India will give a new drive to trade and investment. The trade of goods and services will increase several times. The two countries have recently completed a feasibility study on the possible deal. This possibility has been mentioned in the joint study. It has been said that if the agreement is reached, the trade between the two countries will increase from a minimum of 700 crore dollars to a maximum of 1 thousand 500 crore dollars in the next 7 to 10 years. Stakeholders are also looking at the potential in the service sector. In particular, there is potential in transportation, insurance, banking, telecommunications, and distribution services. Increased trade in goods and services will create demand for investment between the two countries. Daily Samakal has given this information from the sources of the concerned ministries.
At the Bangladesh-India Commerce Secretary-level meeting in February 2018, India proposed such an agreement to put to use the trade potential of the two countries. The two countries agreed to sign the agreement at a Commerce Minister level meeting in Dhaka in September of that year. Later, at a Trade Secretary-level meeting of the two countries, it was decided to examine the feasibility of the agreement. The study was conducted jointly by the Foreign Trade Institute of Bangladesh and the Center for Regional Trade of India.
Bangladesh’s prospects: Bangladesh’s exports to the Indian market will increase from 300 crore dollars to 500 crore dollars in 7 to 10 years of CEPA. Bangladesh’s textiles and garments, medicines, animal and vegetable fats, chemicals, marine products, bakeries, and various other products have potential in the Indian market. In addition, Bangladesh will have the opportunity to work in the Indian market in various services including professional services, IT, construction, financial services, and communication services.
India’s prospects: If the agreement is signed, India’s exports to Bangladesh will increase from the current exports to an additional 400 crore dollars to 1000 crore dollars in 7 to 10 years. Various types of food, medicine, plastic and plastic products, wood products, cotton, woven fabrics, iron, trams, railway bogies, and other products from India have potential in Bangladesh’s market.
Investments will increase: According to the report, if trade in goods and services between the two countries increases, investment demand will be created around it. Indian entrepreneurs will have the opportunity to invest in food, pharmaceuticals, leather and leather products, textiles and readymade garments, agro-based industries, farm machinery plants, automobiles, light engineering sector, electronics, ceramics, ICT sector, banking and other financial sectors, telecommunications and mega projects in Bangladesh. And Bangladeshi entrepreneurs will get the opportunity to invest in food and soft drinks, agro-processing, pharmaceuticals, plastics and rubber products, leather and leather products, textiles and readymade garments, jute and jute products, cement, spinning mills, electronics, batteries, travel and tourism and information, communication, and technology sector.
