Proposed Bangladesh–India CEPA could open up new avenues for trade and investment, says CII

India’s leading industry body, Confederation of Indian Industry (CII), on Monday said the proposed Comprehensive Economic Partnership Agreement (CEPA) between Bangladesh and India could significantly boost bilateral trade and investment by expanding cooperation beyond goods to include services, investment facilitation, technology collaboration and skills development.

The organisation noted strong alignment between the new government’s “Bangladesh First” strategy and India’s development experience, highlighting broad scope for a deeper economic partnership.

Speaking at an interaction with a Bangladeshi media delegation at CII headquarters in New Delhi, Senior Vice President (International Business) Pankaj Tandon said the current phase of Bangladesh–India relations is critical not only for sustaining existing ties but also for shaping the next stage of economic cooperation to support Bangladesh’s long-term growth and competitiveness.

He said the “Bangladesh First” approach focuses on strengthening domestic capacity, generating employment, boosting productivity, diversifying exports, advancing digital transformation and building long-term resilience. “Importantly, this is not an inward-looking strategy; rather, it seeks to strengthen national capabilities through well-designed partnerships,” he added.

Describing Bangladesh as India’s largest trading partner in South Asia and India as Bangladesh’s second-largest trading partner in Asia, Tandon said bilateral trade reached about $13.5 billion in the 2024–25 fiscal year. He emphasised that expanding market access, reducing non-tariff barriers and improving border infrastructure could further accelerate trade.

He also pointed out that Bangladesh’s industrial base and India’s strengths in manufacturing and services are complementary, offering opportunities to develop integrated regional value chains.

Highlighting sectoral prospects, Tandon said textiles and apparel would remain central to Bangladesh’s economy even after its graduation from least developed country status, though future competitiveness would depend increasingly on productivity, compliance, machinery and design capabilities.

He identified medical tourism, food processing, agricultural value chains, the digital economy, startups, energy cooperation and MSME linkages as key areas for enhanced collaboration.

According to him, India’s expertise in digital public infrastructure, fintech, renewable energy, manufacturing and sustainable development could support Bangladesh’s economic transformation.

Tandon reaffirmed CII’s commitment to working closely with partner organisations in Bangladesh to strengthen business-to-business engagement and deepen economic cooperation between the two neighbouring countries.

CII Senior Director Manish Mohan, Diplomatic Correspondents Association, Bangladesh (DCAB) President AKM Moinuddin, and former DCAB president and The Daily Sun editor Rezaul Karim Lotus also spoke at the event.