Archive · 25 Aug 2026
India-Bangladesh Economic Ties Seek Revival Despite Political Differences
India and Bangladesh are trying to improve their business relationship.
Their officials met in Dhaka to discuss ways to make trade easier.
They want to reopen small markets near the border called border haats.
They also want land ports to work fully and make it easier to import yarn by land.
The two countries trade about 13 billion dollars each year.
Trade has slowed because of problems over the last year and a half.
Bangladesh suggested creating a group of businesses from both countries.
The officials also said better digital systems and stronger personal connections could help.
However, the countries still have political disagreements, including a dispute over Sheikh Hasina’s extradition.
Indian High Commissioner Dinesh Trivedi met Bangladesh Commerce Minister Khandaker Abdul Muktadir in Dhaka.
The countries discussed reopening border haats, fully operating land ports and easing restrictions on yarn imports through land routes.
Bilateral trade is worth about US$13 billion but has slowed because of obstacles during the past one and a half years.
Bangladesh proposed a joint business task force and stronger digital infrastructure to expand investment and accelerate trade.
Both sides promoted equality, private-sector cooperation and people-to-people ties while political differences, including Sheikh Hasina’s extradition, remain unresolved.
- Who
- Indian High Commissioner Dinesh Trivedi and Bangladesh Commerce Minister Khandaker Abdul Muktadir.
- What
- They discussed measures to deepen economic and commercial cooperation, reduce trade barriers and strengthen bilateral ties.
- When
- The meeting took place on Monday, with details reported on Tuesday.
- Where
- The meeting was held at the Bangladesh Secretariat in Dhaka.
- Why
- The discussions aimed to revive trade, create investment opportunities, expand business cooperation and improve bilateral relations.
Economic Engagement
Political Concerns
Priority for bilateral relations
Economic Engagement
The officials emphasized business-to-business cooperation, joint investment, trade facilitation and economic ties as ways to strengthen the broader relationship.
Political Concerns
Political and economic differences remain between the countries, and unresolved matters such as Sheikh Hasina’s extradition continue to complicate relations.
Basis for cooperation
Economic Engagement
Trivedi said India and Bangladesh are equal, independent and sovereign countries and should work together for development, peace and prosperity.
Political Concerns
The postponed visit of Bangladesh Prime Minister Tarique Rahman was described as a recent setback, showing that diplomatic engagement has faced difficulties.
- Bilateral trade
- India-Bangladesh trade is worth around US$13 billion.
- Bangladesh’s trading partners
- India is Bangladesh’s second-largest trading partner after China.
- Border trade
- The countries discussed reopening closed border haats and making land ports fully operational.
- Yarn imports
- Bangladesh was urged to lift or ease restrictions on yarn imports through land routes.
- Business cooperation
- Bangladesh proposed a joint task force involving businesses from both countries.
- Digital infrastructure
- Improved digital infrastructure was identified as a way to create investment opportunities and accelerate trade.
- Trade slowdown
- Trade activity has slowed because of obstacles over the past one and a half years.
- Political context
- The postponed visit of Bangladesh Prime Minister Tarique Rahman and Sheikh Hasina’s extradition remain related outstanding issues.
