Meeting India’s CII: Muktadir hopeful of trade progress soon

Commerce Minister Khandakar Abdul Muktadir is hopeful of positive progress on trade restrictions between Bangladesh and India within the next few months, he said yesterday after meeting a delegation from the Confederation of Indian Industry (CII).

Discussions are needed to restore bilateral trade to its previous normal state, he said.

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The meeting with CII, India’s largest industry association with around 9,700 direct members, took place at the commerce ministry in Dhaka. The visiting 14-member delegation was led by CII Director General Chandrajit Banerjee, who also sits on the board of the government-run investment promotion body Invest India.

Apart from Muktadir, the Indian delegation also held meetings with the high-ups of Bangladesh’s apex trade body The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and proposed to form two taskforces to increase bilateral trade and investment by removing the trade barriers.

Bilateral trade relations between Bangladesh and India have deteriorated since last year, with both sides taking a series of reciprocal trade measures.

In April 2025, Bangladesh restricted imports of Indian yarn through several land ports, while India withdrew its transshipment facility for Bangladeshi goods destined for third countries. India then barred Bangladeshi RMG imports through land ports in May and, in June, further restricted imports of Bangladeshi jute, yarn and woven fabrics through the land border.

CII PROPOSES TWO TASKFORCES

Speaking with the commerce minister, the CII delegation proposed two joint taskforces to increase cooperation in Bangladesh’s infrastructure and high-technology sectors, according to a ministry press statement.

As per the proposal, one taskforce will work to promote private investment and public-private partnerships in infrastructure, and the other to expand cooperation in sectors including semiconductors, green hydrogen, battery storage and data centres.

The CII members suggested that Bangladesh could draw on India’s experience to attract institutional investment. They stated that India attracted around 2.5 trillion rupees of investment in the infrastructure sector last year, with a significant share coming from the private sector.

CII also proposed setting up a manufacturing facility near Dhaka for fast-moving consumer goods (FMCG), including soap, insecticides and fragrances, and called for tariff adjustments to encourage energy-efficient industrial technologies.

The delegation also proposed internships for Bangladeshi youth at Indian companies and cooperation to resolve visa issues faced by Bangladeshi engineers seeking work in third countries.

MUKTADIR SEEKS LONG-TERM VISAS

Meanwhile, Muktadir said removing trade barriers, restoring normal trade, facilitating visas and building a long-term private-sector partnership were necessary to realise the two countries’ economic potential.

Calling for a long-term visa system, the minister said Bangladeshis who frequently visit the neighbouring country for medical treatment and business purposes should not have to reapply for visas every few months.

Speaking to reporters, Muktadir said Indian companies operating in Bangladesh raised concerns about transporting raw materials and goods through land ports.

Improving cargo handling at Benapole and easing cross-border movement would cut costs for these companies, the minister said, citing the Indian businesspeople.

This, in turn, would increase trade between the two countries as sometimes it takes 40 to 45 days for bringing the goods through the land ports, he added.

He also welcomed the proposal to form taskforces, saying large-scale infrastructure investment would be necessary if Bangladesh is to become a trillion-dollar economy in the future.

Significant financing will be required for various sectors, including new railways, highways, ports, and LNG infrastructure, he said, adding that Indian investors’ interest in these sectors would be viewed positively if such cooperation proved beneficial for Bangladesh.

FBCCI-CII AGREE TO FOCUS ON PRACTICAL BUSINESS

Speaking at a joint conference after meeting the CII delegation, FBCCI Administrator Md Fazlul Hoque said both sides agreed to focus on practical business issues and separate politics from commercial ties as far as possible.

“There are many barriers to India-Bangladesh trade, including political ones,” he said. “But we, as businesspeople, want to take business forward with businesspeople.”

The CII also made the proposal of forming two taskforces to FBCCI.

Speaking on that, the FBCCI chief said the proposed infrastructure task force would provide a platform for businesses from both countries to share experience and explore ways to mobilise domestic and international capital for infrastructure projects.

He also stated that Bangladeshi exporters face a range of non-tariff barriers in accessing the Indian market, including testing and certification requirements, customs procedures, standards and licensing requirements, port restrictions and high logistics costs.

India’s 2025 restrictions on the entry of ready-made garments, processed food products, plastic products, furniture and certain other Bangladeshi goods through specific land ports have also raised concerns over market access, he added.

Vinayak Chatterjee, managing trustee of The Infravision Foundation and a delegation member, said India had built experience in public-private infrastructure financing since the early 1990s, and that Bangladesh had its own experience to share from bridges, rail, power and metro rail projects.

CII DG Chandrajit said Indian companies were interested in expanding investments in Bangladesh in sectors including infrastructure, healthcare and emerging industries.

“We want to see how bilateral investment can be increased from both sides and how trade can be expanded,” he said. “We are working on what is within our hands as businesspeople, where there are no roadblocks between us.”

He said the two sides would work out the taskforces’ structure soon, aiming to form them quickly.

CII also sought more regular engagement through quarterly business interactions and sector-specific delegations.

The CII delegation arrived in Dhaka on Monday evening and will stay until today, according to the High Commission of India in Dhaka.