India can give more market access to Bangladesh: Assocham

New Delhi: India is in a position to grant greater market access to Bangladesh and the two countries can forge collaboration to tap the global textile market, industry body Assocham said today ahead of Prime Minister Narendra Modi's visit to the neighbouring country. The industry body said the Prime Minister's two-day visit is likely to see bold moves take economic relations much beyond the thread of cotton and textiles industry, which dominates bilateral trade.

The Prime Minister will embark on a two-day visit to Bangladesh beginning June 6 with an aim to inject new momentum in the bilateral relationship by enhancing cooperation in connectivity, economic and other areas. "With such a huge trade surplus in our favour, India can afford to be much more liberal towards its neighbour in granting market access. "In fact, while a fair competition is welcome, India and Bangladesh can get together in jointly tapping the global textiles market with advantage of cost effective Bangladeshi workforce, while India can provide support in technology, branding, scale etc," said Assocham President Rana Kapoor.

India-Bangladesh trade has increased over the years but the share of Bangladesh in India's total imports remains minuscule. Share of Bangladesh in India's exports has remained around 2 per cent in recent years. India has consistently maintained a trade surplus with Bangladesh, Assocham noted. "Of the total bilateral trade of USD 6.65 billion, India's exports comprised USD 6.16 billion while imports were less than USD 500 million, leaving a large trade surplus of USD 5.68 billion," the industry body pointed out.

India's imports from Bangladesh consist of primary products like betel nuts, jute fibre/yarn, oil cakes, fish etc. On a holistic level, as India, Thailand or Sri Lanka climb up the ladder of their dynamic comparative advantage, more labour-intensive industries can potentially move to lower wage countries such as Bangladesh and Myanmar, Assocham said.