India and Bangladesh Resume Trade Talks After Three-Year Gap
Port restrictions, non-tariff barriers, land-route trade and duty-free market access under SAFTA feature in discussions amid a widening bilateral trade imbalance.
India and Bangladesh have resumed discussions under their Joint Working Group on Trade after a three-year gap, addressing long-standing concerns over port restrictions, non-tariff barriers and cross-border trade. The meeting, held in New Delhi on October 8–9, took place amid continuing political uncertainty between the two neighbours.
Port Restrictions and Export Barriers on the Agenda
Bangladesh has urged India to ease port-related restrictions, many of which were imposed last year and have affected exports of readymade garments, processed food, plastic products, wooden furniture and cotton waste.
Restrictions on shipments of jute and jute products from Bangladesh were also discussed, according to a source tracking the matter.
Dhaka has additionally sought the removal of non-tariff barriers, including certain testing and certification requirements that it says limit exports to the Indian market.
India, meanwhile, wants Bangladesh to lift restrictions on yarn shipments through land routes and reduce high tariffs on Indian imports.
Bangladesh Seeks Clarity on Duty-Free Market Access
Bangladesh is also concerned about the continuation of duty-free access to the Indian market under the South Asian Free Trade Area (SAFTA) as it graduates from least developed country (LDC) status, sources said.
The meeting was attended by an official Bangladeshi delegation headed by Aysha Akter, Additional Secretary of the Free Trade Agreement (FTA) wing of the Commerce Ministry.
A source tracking the discussions told BusinessLine: “This meeting was not aimed at taking decisions, as it was at the joint secretary level. But it was important as it restarted discussions to take pending matters forward for decision-making at the next stages,”
The meeting was intended to restart discussions and move unresolved matters towards decision-making at subsequent stages.
Bilateral Trade Remains Uneven
India and Bangladesh recorded a significant difference in their bilateral goods trade in 2025–26. Bangladesh exported goods worth $1.75 billion to India, while India's exports to Bangladesh stood at $10.96 billion.
India is Bangladesh's second-largest source of imports after China.
The discussions come as both countries seek to address trade-related concerns while navigating broader diplomatic challenges.
Political Relations Remain Sensitive
Relations between India and Bangladesh have been strained since former Prime Minister Sheikh Hasina was ousted in August 2024 and subsequently stayed in India. Tensions have included Dhaka's demands for her extradition, concerns over the treatment of minorities in Bangladesh, and mutual allegations concerning the handling of security and political issues.
The transition to an interim administration led by Muhammad Yunus was accompanied by diplomatic tensions, although both sides continued engagement on trade, connectivity and other bilateral matters.
The political environment remains delicate under Prime Minister Tarique Rahman, whose Bangladesh Nationalist Party (BNP) won the February 2026 general election. The result has opened the possibility of a reset in bilateral relations, although full normalisation remains a work in progress.
Despite the broader challenges, the resumption of trade discussions provides a channel for both countries to address outstanding commercial issues.