Digital Desk: Bangladesh is most likely to become India's fourth-largest export destination for the financial year 2022. This resulted in Bangladesh's economic boom fueling India's export growth.
According to data available till October, during the first seven months of FY22, exports to Bangladesh grew 81 percent over the same period in the preceding year to $7.7 billion. This makes it India's fourth-largest export market after the US, UAE, and China.
If the trend remains the same, Bangladesh is expected to improve its rank further in India's export profile from last year's 5th position when it surprised analysts by jumping from 9th rank in FY20.
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Bangladesh has shown an extreme economic miracle among the South Asian countries with its unmatched transformation over the past decade. It may even surpass India in terms of per capita income very soon.
The country's growth was mainly rooted in its success as an exporter of garments, which account for around 80 percent of its total exports. Remittances from the overseas amount to over 6 percent of GDP.
The major items exported from India to Bangladesh during April-October 2021 consisted mainly of cotton, cereal, electricity, vehicle parts, machinery and mechanical appliances.
India and Bangladesh are currently undertaking a joint study on entering into a bilateral comprehensive economic partnership agreement (CEPA).
In a joint statement, Prime Minister Narendra Modi and his Bangladesh counterpart Sheikh Haseena emphasised the need to address issues of non-tariff barriers and trade facilitation.
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