India and Bangladesh have decided to commence talks on a free trade agreement (FTA) and bilateral trade in Indian rupee currency, a government official said on Tuesday, December 27.
He said that two countries have already completed preparation of a feasibility report on an FTA and also explore if trade between the two countries could be conducted based on rupee transactions.
The agreement will also look at easing of norms of trade between the two neighbouring countries and cross border flow of investments, the official said.
The trade ministers of the two countries have already met on the issue and discussions were held on removing of non-tariff barriers to trade between the two countries, reopening physical commodity markets at the border, removal of port restrictions and strengthening of trade infrastructure, he said.
Bilateral trade between India and Bangladesh is estimated at $18.2 billion in 2021-22.
